Harvey Norman Business Case Study


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Harvey Norman is one of the most iconic retailers in Australia that offers a range of technical and innovative solutions for every room in your house and office. It mainly deals in computers, electrical, entertainment, and furnishing goods. Have you ever wondered why universities delegate so many Harvey Norman business case study assignments to students? Well, this is because of the unique business strategy employed by Harvey Norman that enabled it to come out of its shell even after getting affected so hard by the financial breakdown.

Students often get stuck with business case studies while understanding the critical elements of the supply chain, business, and marketing. So, if you are stuck with Harvey Norman business case studies, we can provide you with outstanding Harvey Norman business case study solutions. Online Assignment Expert is a leading academic assistance service provider that has helped thousands of university students understand the approach to writing a case study.

Harvey Norman is one of the largest retailers in Australia, established in 1961 by Gerry Harvey and Ian Norman. It is a public retailing company that functions as a franchisor. It grants franchise licenses to independent business operators. These business operators retail home and office products of various categories, including computers, carpeting materials, furniture, bedding, and small appliances. Harvey Norman has a famous slogan, "Go, Harvey, Go Harvey Norman". Harvey Norman has a code of conduct linked with a high level of integrity and ethical behaviour of the firm members.

Harvey Norman Case Study

Key elements of The Marketing Strategy of Harvey Norman Holdings Limited

  1. Vision of the company - The vision of Harvey Norman Holdings Limited is to become the top-quality service and product provider for the customers. To work upon this vision, Harvey Norman Holdings Ltd. marketing strategy and operations focus on providing value to its customers and concentrate on improving costumer's experience.
  2. Mission of the company - The marketing strategy of Harvey Norman Holdings Limited is grounded in its mission, which is to become the favourite retailer for the customers. This mission is crucial for the marketing strategy of Harvey Norman as it mainly focuses on all marketing and operational activities in the direction of using market research to understand and influence customers' choices and customer centrism.
  3. Brand equity of the company - Knowing and understanding brand equity is crucial to direct and give meaning to the marketing strategy of Harvey Norman Holdings Limited. The knowledge of a company's brand equity helps in efficiently shaping the marketing strategy, which facilitates the growth of business for the company.
    • Brand awareness - Harvey Norman has the highest brand awareness because of its international business. The company focuses on allocating a higher budget in the country of origin. Moreover, each market for Harvey Norman has highly improved marketing and strategic plans and directives.
    • Brand loyalty - Harvey Norman has successfully gained the trust and loyalty of its customers because of influential and unique marketing. The company adds value to its products and product portfolio to increase customer engagement. The company has a global customer base with around 220 stores in 8 different countries across the globe.
    • Brand assets - Harvey Norman has a significant brand value, and it also boasts of having a high financial worth. The company values its employees by building a loyal and solid employee base.
    • Brand element - Harvey Norman uses its brand elements for a competitive advantage. The company uses adaptability in servicing, products, and marketing to fulfil different cultural demands.

Harvey Norman Business Case Study: SWOT Analysis of Harvey Norman

  1. Strengths - Harvey Norman has numerous strengths.
    • Firstly, the company is financially stable. As of 31st December 2010, the company gained an annual profit of $198.61 million. Although the expected profit was 16.5 per cent less than the profit gained in 2009 ($237.77 million), the reduction was attributed to some uncontrollable external factors. For instance, the unusual weather in Australia reduced the demand for some essential products such as outdoor furniture and refrigerators. The firm currently maintains a low debt to equity ratio of 31.19 per cent and net debt to equity ratio of 25.12 per cent. The company's financial stability enables it to fund its expansion plan efficiently.
    • Secondly, Harvey Norman assures the best customer service. Considering the honesty policy, core values, and integrity, the company focuses on fulfilling the customer's needs. The company sells high-quality products and provides sales services such as technical advice. Harvey Norman has successfully improved the customer's experience through its innovative e-learning initiatives. Customers can easily access product information and make instant purchases through the company's website. Such exemplary customer services have enabled the company to retain its valuable customers and maintain its market presence.
    • Lastly, Harvey Norman offers a variety of services and products. The company stocks products of several brands in every category of products. This has helped the company to gain a competitive advantage in two ways. First, the company is considered a one-stop retailer for furniture, electronics, and home appliances. Second, the customer's experience has been improved as they can find all the products under one roof.
  2. Weaknesses - Although Harvey Norman has always used a franchise business model to expand its operational services, it has not been able to gain full control over its marketing services. One of the greatest demerits of using the franchise business model is that the firm's business becomes dependent on the management of franchisees. Apart from that, the model fails to give higher returns. For instance, in 2010, the company's profit was reduced to half due to low fees collected by individual franchisees. Secondly, most of the company's stores are situated in Australia. Thus, the company's performance might get affected if the Australian market becomes unfavourable.
  3. Opportunities - The company is fortunate to have an educated, large, and wealthy population. This is likely to increase the demand in the retail industry, thus, allowing the company to improve its productivity. Privatization of the retail industry and eradication of import services are great opportunities for the company to increase its market presence and share. Using substitute products provides a low threat to the company's business and prevents a substantial reduction in consumer prices. Lastly, the market is also determined by low buyers' bargaining strength and high suppliers' bargaining strength. This hampers the company's ability to access cheaper supplies to maintain competitive yet nominal prices.
  4. Threats - There are several types of threats to Harvey Norman's business. Firstly, the interest rates have increased tremendously over the past few years. This has led to a reduction in consumers' confidence and demands. Secondly, the demand for seasonal products such as geysers and refrigerators get affected by unexpected changes in Australian weather.

Harvey Norman Business Case Study Sample for Your Reference!

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