JB HiFI will cut prices to defend market share
According to Richard Murray, the CEO of JB HiFi, the electronics retailer will cut prices in order to defend its market share. The Australian Financial Review reported that despite solid revenue growth, a slight decline in expected profits resulted in 8% share price drop. This defies logic, as the short term prospects of JB are solid. The investors should be more concerned about the long term viability of the JB's business model in the rapidly evolving marketplace.