• Subject Name : General Management

Michel Porter’s Generic Strategies

Table of Contents


Competency and resource that enhance company’s sustainability and competitive advantage.

Justify the choice of resources by using VRIO..

Evaluate and discuss current business generic strategy.



Introduction to Bunnings Warehouse

Management in business is essential for recognizing the available resources of an organisation and designing their business plans by utilizing those resources in a systematic manner. The process is effective for the management, as this reduces the business wastage rate and can deliver products or services to the clients in high quality, which users can expect from a company. The current discussion is dealing with the management planning of Bunnings Warehouse Company. The most significant strengths and resources of the company are going to be analysed in the later discussion and justify the impacts of those resources in business improvement by using tools like VRIO. Moreover, the study also evaluates recent business generics with respect to the selected company, which ensures greater business success in the future. 

Competency and Resource that Enhance Company’s Sustainability and Competitive Advantage

Based on the available sets of information about the companies like Bunnings Warehouse, it can be identified that the mentioned management covers a wide area in household decor. The large number of products of the company can help their clients to design their households in a most desired and budget-friendly manner. After gaining detailed information about the company and its offerings, it can be identified that the potential strength of the company lies on their huge variety of products (bunnings.com.au, 2020). Besides this, the experienced design teams of the company, who are responsible in household decor planning is considerably another aspect of strength for the company as well. Contextually, the innovative planning in business and quality product collectively provide competitive boot up to the management of Bunnings Warehouse Company as well. In-depth analysis of the company information,. It can be identified that the management has a wide range of products for their clients, by which the users not only can decor the outdoor of the house, but also redesign their indoors with desired style as well.

In this context, the mentioned company offers their best services to their clients in a warehouse costing, which can attract the most number of clients to the management. Besides this, the one stop solution for all the criteria like dream kitchen, well-designed garden, well decor bathrooms, attractive curtains and furniture, and many more factors are proved to be the most appealing feature of the company to their large share of clients. Moreover, the company’s correlation with leading brands like Dulux, Philip, Bosch, Sika, and others is another strength of the company, which offers greater competitive advantage than the other farms in Australia (bunnings.com.au, 2020).

Besides the company's offerings, the management also has a skilled team in organisation’s website management as well. Bunnings Warehouse represents their services and products to their clients in an attractive manner by the company’s website. The services are analysed in detail in the website with demonstration of the previous works. This can motivate the customer to engage with the company. Based on the information from the above figure, it can be highlighted that the total number of views by the customers in the company’s website is almost 25.24M, which is almost 6.23% greater than the previous times (similarweb.com, 2020). Moreover, the management is also gaining competitive advantage over the other companies from their customers' referral rate. Thus, it can be sensed that the service offered to their clients is high and satisfying, thus; they are referring others to check in with Bunnings’ offerings.

Well structured and content-based digital marketing by the mentioned management can attract the big customer base to avail the company’s services in home decor. The available information regarding the company supports this view, as this indicates that the search rate of the company’s website is lamost 64.27% among their customer base (similarweb.com, 2020).

Moreover, the company offers an uninterrupted and safe business service for their customers even in Covid 19 situations. The management ensures safety of their customers in the stores by engaging a team with sanitizer and gloves and bringing the customers clean and hygienic atmosphere within their stores. Adds to these, online services in buying products by the company also attract the customer groups and these prove to be strengths of the company as a whole. In this regard, the management is also found to be considering the safety of their managers as well within the stores, they are advised to fit masks and cover the nose within the stores (bunnings.com.au, 2020). The overall safety processes are measured with respect to the regulations of the local governing authority for employee satisfaction. This improves the company strength more likely than the other competitive farms, who do not have a fixed plan for employee and customer safety.

Justify the Choice of Resources by Using VRIO

After a detailed accounting of the former discussion, numerous aspects are found, which are considering the strength factors for the company and offering the management their desired competitive advantage in business as well. In this section, the selection of those aspects are justified for the companies like Bunnings Warehouse in Australia. The discussion is being done by using the VRIO framework for analysing the factors of business with respect to their impact over the business process. Based on the comments by Yudiono et al. (2019, p. 214), the VRIO framework is an analytical tool, by which a management can analyse their business resources’ impact in a critical note. The analytical framework consists of factors like Value, Rareness, Imitability, Organization (Yudiono et al. 2019, p. 214). The rarity of the offerings by the management can ensure greater business success for the company. The VRIO framework analysis is discussed below

Based on the aforementioned aspects, the management team of Bunnings Warehouse Company can analyse the value, rarity of their available aspects.



Company’s advantage


This includes services or products, which add value to the company and improves the competitive edge of the company before their customers.

Contextually, the aforementioned management has certain features in their organisational background, by which the value of the company can be enhanced.

Quality of the products for both interior and exterior decoration for the houses with expert designing team support adds value to the company. Besides this, the safety and uninterrupted business environment for both the managers and customers is proved to be another significant value point as well (bunnings.com.au, 2020). Vast availability of the products for house decor, festival decorations collectively enhances the value of the company.


The resources or services, which make the business offerings rare to the other farms and the clients of the company. This will help the companies like Bunnings Warehouse to gain competitive advantage

The vast range of products for home decor, festival decoration, children’s happiness decoration by the management along with well-equipped gardening products, piants, and plumbing features simultaneously improve the company’s rarity. The management’s collaboration with leading brands like Dulux, 3M, Caroma, and many more and the budget-friendly costing adds rarity to the business as well (bunnings.com.au, 2020).


This indicates the resources or service process, which is tough to imitate by the other companies.

The management of Bunnings Warehouse has well-structured business servicers for their clients with skilled design teams. The process is successfully followed by one of the leading referral site destinations in digital marketing of the company, which is almost 5.38% in recent years (bunnings.com.au, 2020). Thus, it can be understood that the management has a better competitive edge over the other companies.


This explores the management system, which is well organised, through which the company can utilise their available resources in utmost manner to ensure greater business success and gain better business competitiveness over the other farms of the market

Based on the information sought from the official website of the company, it can be identified that the management guides their customers and managers in recent Covid 19 situations based on the regulations by the Victorian Government. Beside this, the management has well-structured cleaning and safety procedures within the stores to ensure uninterrupted services to their clients. These structured business culture can improve the business competitiveness

Table 1: VRIO analysis for Bunnings Warehouse Company resources

(Source: Created by the researcher)

Evaluate and Discuss Current Business Generic Strategy

In this section, recent business trends are analysed, which proves to be effective for the management of Bunnings warehouse. The discussion is being done with implementing Porter's Generic Strategies with respect to the aspects of aforementioned company. Based on the generic model, it can be evaluated that the company’s competitiveness can be managed by four certain aspects, like cost leadership strategy, differentiation strategy, cost focus strategy, differentiation focus strategy (Kontu et al. 2019, p. 605).

Cost leadership strategy

The management requires them to offer their products in a budget-friendly manner to their clients. Besides this, the management looking forward to improve their market share for reaching a greater number of customers in real-time and this will penetrates the company’s production rate as well

Differentiation strategy

The products needed to be differentiated from the substitute items. The process can be successfully done by ensuring greater quality and better delivery services to the clients. Contextually, the management of the mentioned company has found to offer online delivery to their clients in recent emergency situations to manage the health issues. This generic strategy can be effective for the management to gain better competitive edge than the other farms (Viltard, 2017, p. 475)

Cost focus strategy

In this, the management needs to regulate their products’ costing after gaining information about the market by in-depth market research. The dynamics of the market and the basic requirements of target customer groups are other two factors, which are needed to be examined in cost focus management (Omsa et al. 2017, p. 319)

Table 2: Aspects of Porter's Generic Strategies

(Source: Viltard, 2017, p. 477)

Conclusion on Bunnings Warehouse

Based on the overall discussion, it can be identified that the potential objective of the study is to evaluate exact aspects of business management, which can be helpful for the management to increase their business profitability and gaining competitive advantage. This study analysed the factors with respect to the Bunnings Warehouse Company in Australia. After detailed analysis, resources of the aforementioned company, which will increase the business compatibility are highlighted in previous sections. However, the selection is not made by natural instincts, rather the accountability of certain resources is analysed by using the VRIO framework. Current business generic model is found to be implemented in this discussion to highlight best business strategies for the management to gain better competitive edge in the market.

References for Bunnings Warehouse

Ariyani, W. and Daryanto, A., 2018. Operationalization of Internal Analysis Using the VRIO Framework: Development of Scale for Resource and Capabilities Organization (Case Study: XYZ Company Animal Feed Business Unit). Asian Business Research Journal3, pp.9-14.

bunnings.com.au (2020) About Us available at: https://www.bunnings.com.au/ [accessed on: 11th Oct 2020]

Indartono, S. and Wibowo, F.W., 2017. VRIO and THES based development of university competitive advantage model in formulating university strategic plan. International Information Institute (Tokyo). Information20(10A), pp.7275-7283.

Kontu, A., Kantola, J., Vanharanta, H. and Kontu, K., 2019, February. Sustainable Competitive Advantages in the Industrial Service Business. In International Conference on Intelligent Human Systems Integration (pp. 600-606). Springer, Cham.

Omsa, S., Abdullah, I.H. and Jamali, H., 2017. Five competitive forces model and the implementation of Porter’s generic strategies to gain firm performances.

similarweb.com (2020) Traffic Overview available at: https://www.similarweb.com/website/bunnings.com.au/#overview [accessed on: 11th Oct 2020]

Viltard, L.A., 2017. Strategic mistakes (AVOIDABLE): the topicality of Michel Porter’s generic strategies. Independent Journal of Management & Production8(2), pp.474-497.

Yudiono, N., Wilopo, W. and Iqbal, M., 2019. VRIO Analysis to Measure E-Business Readiness in the Automotive Industry in East Java (Study on Otobus Company Kalisari and Otobus Company Menggala). Wacana Journal of Social and Humanity Studies22(4).

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Management Assignment Help

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