logo

Competitive Strategy Between BHP Billiton & Wesfarmers

   

Added on  2020-03-07

6 Pages1397 Words167 Views
Business DevelopmentLeadership ManagementData Science and Big Data
 | 
 | 
 | 
Running head: COMPETITIVE STRATEGYCompetitive StrategyName of the studentName of the universityAuthor note
Competitive Strategy Between BHP Billiton & Wesfarmers_1

1COMPETITIVE STRATEGYKey Strategic IdeaBHP Billiton is one of the market leaders in their field of metal, mining andpetroleum. The company has followed a unique structure and strategy in the last decade togain competitive advantage in the market. BHP Billiton is largest mining company in theworld and this has been possible only because of the usage of innovation in the businessmodel (Grant et al. 2014). The company has kept its core value intact and it has producedpositive results for them. BHP Billiton’s Strategy is based on diversification where theorganization tries to operate on low cost, long life, expandable assets.Wesfarmers have invested in retail, coal mining, chemicals, industrial products forsafety and fertilizers. This shows that the organization has a diversified portfolio and theorganization is able to gain large amount share in market due to the innovation they sue intheir business model. Wesfarmers is one of the largest companies in Australia and has beenable to hold on the market share due to their use of innovation in the business model.Wesfarmers have a strong management capability, which helps them to formulate andexecute strategies (Biddle 2016). The company monitors day to day activities to ensuremaximum productivity in all their diversified portfolios.Business model innovation at BHP BillitonThe business model that has been established by the company helps in thedevelopment of the core competencies and the at the same time expertise’s in thedevelopment, evaluation, selling and extraction of natural resources. The business of theorganization is asset intensive and the success of the organization is dependent on the safety,reliability and productivity of the operations (Perrott 2015). The improvements in theproductivity of the organization with the help of unique features are the reason for their huge
Competitive Strategy Between BHP Billiton & Wesfarmers_2

2COMPETITIVE STRATEGYshare in the market. The scale of operation of the company is large which will minimize theproduction cost of the company. The operations of the company is diversified which consistsof commodities of various types which helps to hedge the risks involved in the market. Thecompany also uses innovative ways to reduce the cost of the supply chain of the organization.the company uses simple integrated metrics in a structured way to make improvement in theproductivity. The company continuously measure the performance to make furtherimprovements (Klettner, Clarke and Boersma 2014). The continuous enhancement in theculture and the technology in the organization has helped the organization to lay thefoundation for the growth and production. There are lot of complexities associated with themining industry but the company has made usage of the simple design to monitor theperformance. The business model is designed in such way that it will help the organization inall the elements. Therefore, all the essential activities in the organization is monitored on aregular basis to ensure effective use of resources. The supply chain of the organization is veryeffective and it acts a backbone for the operating model of the organization. The supply chainof the organization helps to streamline of the business model. The organization uses aintegrated system for management which helps the organization track, measure andbenchmark the performances in to a single component. The company sues standard processand common system to step up duplication of the best practices (Chaston 2017). Thecompany spends a lot of capital on the research and development of technology. Thecontinuous improvement in the technology acts as a major catalyst in the growth in theproductivity of the organization. The organization in still searching for autonomous ways toreduce the cost and time involved in the operations. The company is focusing onimprovement in the technology through innovation, which will help the organization toimprove safety, increase the output and minimize the cost of production.
Competitive Strategy Between BHP Billiton & Wesfarmers_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Essay on Purchasing Management
|11
|2967
|210

Program and Portfolio Management
|21
|5128
|67

Report on Analysis of Environment of the Australian Market
|12
|2816
|50

Strategic Management
|6
|1013
|278

Corporate Finance: Strategies, CAPM, Share Price Calculation, P/E Ratio, RRR Method
|9
|1427
|498

Threats to BHP Billiton's Survival
|20
|4127
|139