Westfarmers Case Study

5283 words 22 pages
Executive Summary

Wesfarmer’s home improvement division, Bunnings has been the leading hardware supplier in all states of Australia and New Zealand in the past years. Bunnings’ strategic objectives are to provide the widest range of home improvement goods with lowest price. It can be seen as a slight prospector / strong analyzer based on the Miles and Snow’s Adaptive strategies (Miles & Snow 1978).

Bunnings’ core competence is their depth and breadth of stock holdings and brand name recognition designed to cover almost all the needs of people’s everyday life.

Bunnings are doing basically well in the strategic implementation process. From innovation to stuff, from information technology to legal and e-legal, Bunnings are all
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People are far more aware of the importance of protecting the environment.
Bunnings Warehouse chain and the State Governments are working together to encourage local residents to make wiser decisions of their homes and gardens in energy and water savings. (Victorian Litter, 2007)

2.1.5 Legal
The Australian legal system is well developed and respected. It fosters transparency and favors competition. (Global insight, 2007) From this perspective, Bunnings will still strive in the market as the have in the past with a more developed mature legal system that supports reasonable market competition.

Over the past decade as interest rates remained low Australian households typically spent around forty dollars per week on capital improvements and alterations, directly impacting demand for hardware goods and supplies. This market has allowed Bunnings to grow and capitalise on its significant buying power as a major path to market for suppliers, this in essence rates supplier power as low to medium, however the barriers to entry into this market are also quite low so competition is furious and substitutes of Bunnings are in plentiful supply.

Possible threats to the industry segment come from the softening market for extensions and renovations and more