While Harvey Norman trading as a multi-sector business selling computer, electrical, furniture and bedding goods, the retail industry in which HVN operates involves larger range of goods and services (all customer consumables). The largest product segment is clothing, footwear and accessories. However, driven by growth in product technology and functionality, electrical goods have overtaken goods from department stores over the past five years with several other major competitors (Dick smith, Office works etc.) who kept pressure on HVN.
According to Australian Bureau of Statistics, the sector has been grown modestly over 2011-12, with sales increasing by 1.5% to $21600 million. Along with subdued trading conditions, consumer goods retailers will face a challenging market due to uncertainty surrounding future trends in unemployment and interest rates. Retail spending will also be affected by debate over the full effect of the carbon pricing scheme. Growth across the consumer goods market will be negatively affected by a rise in the number of consumers choosing to shop online due to the vast product range, competitive pricing and lack of GST payable on goods purchased from overseas retailers. Company Analysis
Harvey Norman is one of the large scale retail companies listed on the Australian Securities Exchange (ASX) originated in Australia. It is a successful and integrated business based on electric, furniture, entertainment industries. It develops its industries in many fields and that is why we choose it. Due to the large-scales development, it faces more competition in different areas. In this situation, how Harvey Norman can keep its competitive advantage becomes an interesting issue that we want to discuss. Harvey Norman was established by Gerry Harvey and Ian Norman in 1961, which specialized in electronics and got the achievement. Until the early 1980s, Harvey Norman suffered a large scope...