Bunnings Market Analysis: External and Internal Factors

This report analyzes Bunnings, Australia's leading hardware store, including its external and internal factors affecting marketing strategies and profitability. The report covers the business surroundings, industry overview, general environment analysis, industry environment, opportunities and threats, tangible and intangible resources, identification of capabilities, main competency analysis, and proposed information system solutions. The report concludes with recommendations for the company.

BUNNINGS MARKET ANALYSIS
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Contents
Introduction................................................................................................................................2
Part 1..........................................................................................................................................3
(External Analysis).................................................................................................................3
Business Surroundings...........................................................................................................3
Industry Overview..................................................................................................................3
General environment Analysis:..............................................................................................3
Industry Environment.............................................................................................................4
Opportunities and Threats......................................................................................................6
PART 2.......................................................................................................................................6
Internal analysis and proposal................................................................................................6
Tangible and Intangible Resources of the firm......................................................................6
Identification of Capabilities..................................................................................................7
Main Competency Analysis...................................................................................................7
Propose a suitable information system solution that meets the chosen company needs........7
Evaluate the proposed system and provide your recommendations......................................8
Conclusion..................................................................................................................................9
Reference List..........................................................................................................................10
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Introduction
The business environment has meant to consider the external and internal factors that affect
the organisational functions including, customers, staffs, supply, demand, and management of
the business. In this, the purpose of the report is to properly analyse about the Australia’s
leading hardware store Bunnings which is determined through effective marketing strategies.
The research is based on the qualitative research with secondary sources of information. The
analysis help in marketing strategies that is based on the credible and the academic sources to
understand about the trick benefits Bunnings to obtain a better scale of economy. The market
trends are defined through the marketing segmentation with strength and weakness which is
set through marketing mixtures. The company extends the services which is not only for the
aiding clients to make the decisions for shopping in stores but also to drop by stores and shop.
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Part 1
(External Analysis)
Business Surroundings
The company has been working on extending itself to the different pillars of services which is
not only to aid the clients to make the decisions for shopping in stores but also make it easy
for the others to shop. There are potential competitors like the Woolworths which has
covered approximately 8% of the vast Australian marketing share through use of the Home
Hardware and the Master Home Improvements. Metcash has acquired approximately 7.3% of
the market share with using the True Value Hardware and MITRE 10.
Industry Overview
The industry of hardware caters and fulfills the daily basic and extraordinary requirements of
the consumers by concluding consumer-driven businesses activities and attributes. The
supermarkets or this business giant works in an intermediary position; the industries foster
the overall sales growth of the business. The intermediary production including the increased
revenue and growth has shown the invariable earning over last four years. Australia’s largest
and the profitable home improvement retailer works with 9 lakh customers who are able to
shop at Bunning with numbers going up in 2012 of July to 2013. Bunnings potential
competitors are Mitre. In the current report, Bunnings has shown an effective approach to be
a market leader in the Australian retail industry. The main competitors of the industry have
also been identified where Masters have 1,217,000 regular customers, of the overall market
share (Sutton-Brady et al., 2015).
General environment Analysis:
Economical aspect: Bunning need to focus on the economic and the central government
funding decisions that affect the financial standard of the school. Economic and financial
aspects are the same subsidiary of the concept that depends on the different levels of
spending in the discretionary products and goods. (Schaltegger and Wagner, 2017).
Legal and Political aspect: In the concerned case, the legal and political factors have shown
its focus on the legal regulations and laws. Here, the company has focused on the company
tax rate at 30% where the unions are set for the Fair work to support the employees with
enforcing the consumer laws. The training programs are mainly to ensure the employees who
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are aware of the rights as employees with the safety in workplace (Schaltegger and Wagner,
2017).. The Trade Practices Act are set for a better support from union.
Demographic: Demographic environment is defined by the demographic factors that include
ethnicity and gender in concern. It includes the concern about how 22.3 million people are
knowledge about the different languages and then working between the age of 24-52 years.
Therefore, the present situation has shown the change in technological aspects that have
created a definite impact on consumer needs and demands (Bennett et al., 2016).
Socio-cultural Factors: Bunnings is mainly focusing on the sustainable plans which include
the factors related to supporting the different local communications with diversification in the
workforce as well. Here, there are 46.5% of women and 53.5% of men where the company
tends to work on the sources of products.
Global: Global concept states the overall dimension that has comprehensively emphasised
the organisational requirements into its considerations. The factors reflecting the market
survival has aligned the specific needs of the consumers, the operations have been processed
in the course of de-regulation of the trading hour (Schaltegger and Wagner, 2017).
Organisations have also offered products that are to maintain exponential growths staying
within the global dimensions.
Political: In the present situation, Bunning is able to handle the safety measures with
focusing on the enforcement set with WOHS with heavy icon labels. The organisation has
prioritised the company social responsibilities that have included these factors positively in
the business operations.
Technological: Bunning includes the technological standards work on the online store with
the improvement of the stock inventory with the different levels. Bunnings has been installing
the IBM with storage systems with 54TB for the storage available (Schaltegger and Wagner,
2017). In respect to the innovative, the trends have optimistically harnessed the organisational
survivals that stimulate the organisation with long-term approaches. In concern to the
operational process including business inventories and supply chains, the technological
innovation is considered to be involved. (Botha, Kourie, D. and Snyman., 2014).
Industry Environment
Rivalry among the existing market competitors: The focus is on market competitors with
structure set to handle the cost based and competition which is set at the indispensable role of
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Bunning. The change occurs with the need of installation of new ACs with focus on the
integration of boost with business (Forsyth, 2018).
Substitution threats: Bunning threats are of the new entrants with Bunning business that has
not been affected by the entrant’s threat. Here, Bunning is considered wit marketing leader in
Australia. One need to sort the threats of new entrants (Im et al., 2016). The increase in
competitors has also influenced the product innovations to increase in the market. The
organisation has introduced products to curb the increased competitors in the market.
Suppliers Bargaining Power: The supplier bargaining power includes the varied ranges
focusing on the best suppliers of Australia and New Zealand with supplying the raw material.
Bunning is depending upon the power of the supplier. Therefore, the intermediate selection of
the products is delivered within the specified time.
Buyers Bargaining Power: Bunning needs to focus on facing competition with similar
companies focusing on the economic instability which results in the investments of the less
amount by the customers than the other usual amounts which lead to the diminishing sales
(Bradford & Gerard, 2015). Consumers have been ensured with a variety of products and
choices that they are able to compare in terms of price and utility through different e-
commerce websites and sources.
The threat from New Entrants: The threats are related to how Bunning is able to work on
the customisation with product innovation and household hardware merchant. The increased
intensity of this threat has lowered the chances of sustained business future for the
organisation (Seethamraju, 2015). The organisation has to incorporate frequent innovative
changes and operations in the technological, manufacturing and in its distributional channels.
Competitive Environment
Bunning has been focusing on the poor scrunity of the competitors, where it is working on
tracking the rivals with competitors that does not tend to overtake the siutations. The
organisation need to work on the performance with effective for better productivity. It
includes power dsitribution for thriving and working of the employees. The setup is based on
the boasting of information which is related to the quanity and quality with better
presentation at the workplace (Schaltegger and Wagner, 2017). The Australian market has
also shown the situations that have reflected the increase of low paid individuals and
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consumers where the direct. There are certain frameworks and the risks that are related to the
poor supplier selection with handling the monitoring of competitors in an effective manner.
Opportunities and Threats
The opportunities are based on offering the online purchasing platform where the people tend
to work on building the outdoor hangout places in the homes. The growth is depending upon
the country home owners. Online portals, connectivity, and consumer preferences have
benefited the company with substantial consumers (Sadgrove, 2016).
The threats have been mainly related to the competitive standard which are from the similar
hardware retailers in the country. The growth is for the different companies which takes
through the contract maintenance jobs that lead to reducing the hardware purchasing with
global economic scenario. It might lead to people investing in the less on houses and more on
the hardware industry which can be affected easily. The increase in magnification forces in
the Australian market has accustomed the company with limited market shares and threatened
the channels with proper product delivery to the consumers (Kapp et al., 2016). The other
threat recognised was to compromise the reinforcement of the unskilled workers or staffs
affecting the organisational functions.
PART 2
Internal analysis and proposal
Being the leading company of Australia, Bunning has been focusing on the leading household
hardware with handling the water house catering to the needs of domestic standards. The
segment with working on how the services are offering to the organisation with proper
designing of the kitchen and setting up tailored air conditions with properly installing the hot
water setup. The organisation is to focus on the present assigning with organisational
emergence to portray the brunt of environmental forces (Schaltegger and Wagner, 2017). It
will identify the specific business activities compromising the various factors including value
chain and organisational processes responsible to enhance the company functions.
Tangible and Intangible Resources of the firm
The tangible assets work on the firm resources with focus on handling the intangible
resources that are strong. The company focus on the management with the human resources,
with wide range of product. The product innovation skills with the well designing logistics
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management with strong brand image and reputation. With this, quality and fresh food, with
partnership and alliance management with stronger relationship set with vertical integrated
business (Sutton-Brady, Kamvounias & Taylor, 2015).
Identification of Capabilities
The capacities and capabilities with organisation skills in coordination of resources with
putting them to productive use. The running business incudes how the right positioning is set
for the right use of resources (Tenhiälä & Helkio, 2015). Distributional channels showing
bound-to-bound services and time deliverance system has led the company with better
customer hold and loyalty in the marketplace (Im et al., 2016).
Main Competency Analysis
Brand Marketing: To ensure a positive brand image, Bunning is based on helping the people
to understand the strategy. With the in-depth understanding, the advice is about handling the
quality and the product ranges in an effective manner.
Innovation: The Company has increased the ability to ensure the products meeting the
customer requirements and amends in incorporating innovation through online services and
product initiations (Starkie, 2016).
Integration: Bunning has ensured the integral aspects of managing different deals with the
contractors and suppliers in synchronising the business activities efficiently.
Supply class chain: In order to gain the competitive advantages in the market, Bunning has
focused on the innovation aspect in enhancing the ability to develop R&D section of the
company and to focus on its potential consumers (Starkie, 2016).
Propose a suitable information system solution that meets the chosen company needs
ERP (Enterprise Resource Planning) is based on the business process management software
with allowing the organisation with integration of the applications to manage the business.
The automation is based on product planning and development with sales and marketing. The
ERP is about the software designed factors with use of larger business to customise and
analyse the setup with upgrading and setting the deployment. The study is about the
configuration of processes with facilitation of better planning of project (Starkie, 2016). It
includes the reduced redundant tasks with assessment of the needs of business. It leads to
lowering of the costs of purchasing with management of human resources and payroll.
Management Information System (MIS) has shown a high relevance to meet the suitable
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corner of the organisation. The system will successfully manage the different processes in the
market while intending to procure the necessary data for the company (Laudon and Laudon,
2016).
Evaluate the proposed system and provide your recommendations
ERP works on providing the repository of information with improving the flow of data in and
across the organisation. The cloud ERP is set with the focus on planning production, with the
logistics execution and quality management. It includes the project preparation with the
business blueprint with final preparation (Starkie, 2016). The current company system has
shown advanced technology and with complete automation processes in the organisation. The
system and process focus on monitoring, recording and controlling the databases that are
essential to be reviewed (Singh et al., 2017). The social media enhancement has generated
innovative ideas to the customers and helped the organisation to function better in the
marketplace.
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Conclusion
The research has successfully provided the substantial information and knowledge about the
pricing strategy associated with the company Bunning (Starkie, 2016). The research process
has identified the multiple techniques that have allowed the company to gain competitive
advantage and to manage the different revenue aspects and enhancing the profits for the
organisation. Analysing the present competitors has led Bunning to maintain market
dominance efficiently taking necessary steps to implement augmented systems (MIS) to work
competitively in the market.
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Reference List
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environment: Knowledge management and knowledge management technology. Elsevier.
Bradford, M. and Gerard, G.J., 2015. Using process mapping to reveal process redesign
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Forsyth, P., 2018. Competition versus Predation in aviation markets: a survey of experience
in North America, Europe and Australia. Routledge.
Im, S., Vorhies, D.W., Kim, N. and Heiman, B., 2016. How knowledge management
capabilities help leverage knowledge resources and strategic orientation for new product
advantages in b-to-b high-technology firms. Journal of Business-to-Business Marketing,
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Kapp, K.M., Latham, W.F. and Ford-Latham, H., 2016. Integrated learning for ERP success:
A learning requirements planning approach. CRC press.
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Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Schaltegger, S. and Wagner, M., 2017. Managing the business case for sustainability: The
integration of social, environmental and economic performance. Routledge.
Seethamraju, R., 2015. Adoption of software as a service (SaaS) enterprise resource planning
(ERP) systems in small and medium sized enterprises (SMEs). Information systems
frontiers, 17(3), pp.475-492.
Singh, B., Verma, P. and Rao, M.K., 2017. Influence of individual and socio-cultural factors
on entrepreneurial intention. In Entrepreneurship Education (pp. 149-169). Springer,
Singapore.
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Starkie, D., 2016. Aviation markets: studies in competition and regulatory reform. Routledge.
Sutton-Brady, C., Kamvounias, P. and Taylor, T., 2015. A model of supplier–retailer power
asymmetry in the Australian retail industry. Industrial marketing management, 51, pp.122-
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Tenhiälä, A. and Helkiö, P., 2015. Performance effects of using an ERP system for
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