Wesfarmers: Porter's Diamond Model Analysis of the Organization

This essay provides an analysis of Wesfarmers, an Australian conglomerate, using Porter's Diamond Model. The analysis examines five key factors: factor endowments, demand conditions, supporting industries, competitive advantage, and the influence of government and chance. The essay highlights how Wesfarmers, a major player in retail, agriculture, and mining, leverages its resources and market dynamics to maintain a competitive edge. It discusses the impact of climate and demography (factor endowments), diversified interests catering to basic needs (demand conditions), the need for supporting industries, and the recent strategic moves. The essay also mentions the role of governmental policies and potential international expansion, offering a comprehensive view of Wesfarmers' business operations and strategic positioning within the Australian and global markets.

Running head: WESFARMERS
Wesfarmers
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Wesfarmers limited is one of the most important agro based retail chain of Australia.
The Australian conglomerate has expanded its chain in the retails, fertilizers, industrial and
chemical products and also in the coal mining industries. Headquartered in Perth, the
company is also expanded over New Zealand. The organization is making great business with
a revenue of AU$65.98, which is one of the largest in the market at this point of time,
overtaking even Woolworth. It is also the largest employer in the country (Thompson, 2014).
Therefore, in the following essay, a Porter’s Diamond Model over the organization is
presented to better the conception of the organizational factors.
The Porter’ Diamond Model is used in order to state and understand why and how
certain organizations excel in their business, while others fail in the competition. The
analysis is five folded and includes the following factors.
Factor Endowments: There are essentially two factors, basic and advanced. The basic factors
include the natural resources, like the climate and the demography, and since the organization
is essentially an agricultural industry, both these factors play a pivotal part in their business
conducts. The climate of the country is helpful in the agriculture, and the demography of the
country has helped it to excel in the retail management.
Demand Conditions: The organization has a diversified field of interests. The organization is
one of the giant retail figures in the country, which is empowered by its diversified field of
interest. It has expanded itself both in the agricultural field and in the coal- mining, taking
care of the two basic needs of the population. A major proportion of electricity is generated
by this company. Also, the organization has a huge chain of retail that helps the organization
to reach the nooks of the country in order to reach the customers their basic necessity of food.
The organization is also expanded over the chemical industry, which is another important
industry in any country (Lim et al., 2016).

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Supporting Industries: Since the propensity of the firm is a huge one, therefore, the company
is need of more supporting industries, and it is presented with sufficient amount of supporting
industries, to market its agro- based products. However, the firm faces certain issues to deal
with its coal- mining industry as very few ore industries are present in the country (Hubbard,
Rice & Galvin, 2014).
Competitive Advantage: Wesfarmers has recently introduced their multiple ideas and their
alternative business notions in order to grow and expand through the market. The company is
already a diverse organization, with its interests across many fields. However, along with all
those aspects, the organization is also trying to include some other aspects of marketing and
business in their business practices. They are also aiming to transform their public enterprise
into a free ownership to consolidate the passionate attachments of the employees to the
business attributes and with business innovations (Klettner, Clarke & Boersma, 2014).
Government and Chance: The organization is an Australia based firm. But it has extended its
business and created base in New Zealand as well, and recently, the organization has spoken
to the Malaysian Government in order to take over the Lynas Corp, however, no final
decision has been made. Lynas has agreed to extract the radioactive waste before importing,
but the further discussion on this and other business endeavors have not yet announced.
Therefore, the governmental policies of free trade that is practiced by the country, has
enabled it to expand itself overseas (Barua & Parveen, 2014).

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References:
Barua, A., & Parveen, S. (2014). Assessment Of Competitiveness And Country Conditions
For Lpg Market Of Bangladesh: By Porter’s (1998) Five Forces And National
Diamond Model. Proceedings of the 15th Annual Paper Meet, 7, 08.
Hubbard, G., Rice, J., & Galvin, P. (2014). Strategic management. Pearson Australia.
Klettner, A., Clarke, T., & Boersma, M. (2014). The governance of corporate sustainability:
Empirical insights into the development, leadership and implementation of
responsible business strategy. Journal of Business Ethics, 122(1), 145-165.
Lim, F. J., de Klerk, N., Blyth, C. C., Fathima, P., & Moore, H. C. (2016). Systematic review
and meta‐analysis of respiratory viral coinfections in children. Respirology, 21(4),
648-655.
Thompson, P. A. (2014). Wesfarmers 100: The People's Story 1914-2014. Wesfarmers
Limited.