• Subject Name : General Management

Bunnings Warehouse

Introduction to Comparison of Quantitative Descriptive Analysis

Bunnings Warehouse is one of the most popular hardware retail brand operating its business in Australia and New Zealand (Annabel & Scrymgeour, 2018). This company was founded by two immigrants in 1887 in Perth Australia. The company currently is operating 295 stores. The vision statement of the warehouse is to provide a wide range of products which include home hardware and outdoor living equipment's. The warehouse team is the soul of the business as they work hard to achieve the vision of the company. This company is a decedent of Wesfarmers. The mission of the company is to provide the lowest price of the product to the people whenever they visit the warehouse. Bunnings Warehouse is the largest hardware household chain in Australia and New Zealand. The assignment aims at identifying resources and competencies of Bunnings warehouse. It is observed that this hardware retail brand is giving tough competition to others in the market. Thus, the objective of the assignment is to find out the reason behind the success of strategies and resources used by the company with the help of VIRO framework. Besides, this company also explains its strategy statements and value chain. 

Sustainable Competitive Advantages of Bunnings

Bunnings is one of the most successful companies in the household retailers (Annabel & Scrymgeour, 2018). It is giving tough competition to home hardware, Australian outdoor living and classic home improvement. All this is because of the resources and the competencies of the company. The company has more than 45, 000 product range for its customers so that the customer does not have to search something outside the warehouse and they can get all the things they're in the warehouse itself.

V- The Value of Resources and Capabilities

It means to provide a product or a service which is valuable to customers and to make the most use of the opportunities and threats available. Bunnings warehouse is lowering the price of the products to increase the sale. The company is using a cost leadership strategy as its tool to attract a large consumer base (Keil, 2019). This strategy is gaining competitive advantage for the company. The company provide the hardware for house improvement, garden equipment's, outdoor living, curtain and blinds, flooring, bathroom plumbing, home entertainment and so on. It is observed that the resources and capabilities if not used properly can increase the cost for the company instead of enhancing profits. It is thus the company try to take advantages of the opportunities available in the market. The company also try to meet the needs of its customers. It can be justified from the fact that the company try to focus on the whole family to provide the products of their choice. Despite providing a 10 per cent discount on the products, the company can generate revenues for itself.


The company has come up with some new products which are rare in the market. These products are not even provided by the competitors and this is due to this reason Bunnings warehouse can attract customers towards it. Some of the leading brands of the company which is purchased by the customers are Metal mate, Microplane, Milano Décor, Mimosa and so on. The company to impress its customers altered a hot new statement chair known as statement urban chic chair. People from different areas of the country came rushing to get the new piece of the chair for their home (Mapley et al., 2020). The company also has bakeware items for the customers to make bakery items. It has workout equipment's as well for the customers who are health conscious. The company has also come up with a new drive and collect services. The company during the pandemic situation is also trying to keep everyone safe.

I – Inimitability

Bunnings supply chain is inimitable for other competitors. It is because it has its product line for the customers. Some of these brands include Matador, Jumbuck and so on. The acceptance of these products is not easy and thus the company has lower down the prices. The company provide the same product at the lowest of the cost and even claims that it would return ten per cent of the money if the other competitor starts offering the same product at that particular price which it offers (Oliver, Cicerale, Pang & Keast, 2018). There are some terms and condition for it, it states that the competitor will not be able to deliver the same product on the same day. This strategy of the company makes it difficult for the other competitors in the market to imitate the same thing despite knowing the price strategy and the company's move to enhancing the sale in the market. The competitors fail to imitate because of characteristic ambiguity and linkage ambiguity. The company's team is working hard for the growth of the organization and it is due to the company's people's hard work that the company's supply chain despite being known to the people is not copied.

O- Organization Support

The company's management system to support the activities for new product development and creation of imitable supply chain is because of the formal and informal management system. The company has also registered some of its products as patents so that it remains their sole product. One of the brand Tommyco has registered for industrial patents for kneepads. Similarly, the company's warehouse some other products as well. It has also been identified from the studies that the organizational knowledge of Bunnings warehouse is specific and includes collective intelligence which it gains from people's experience and formal systems (Tan et al., 2020). The company has well shared about it on the online websites so that customers if have any query related to the organization can get resolved from there. The companies in gaining competitive advantage from these sources as well. However, Bunnings warehouse needs to develop further in its information technology to provide financial reports of the company just like its parent company Wesfarmers. These things will increase the reputation of the company in the Australian and New Zealand market.

Current Marketing Strategy and Value Chain Analysis

The company’s current international strategy is to reach standard globalization in the international market (Ariyani & Daryanto, 2018). Apart from this, it is constantly acquiring or integrating with some of the supply chains to increase its presence in the market. Bunnings currently is working on the cost leadership strategy to provide the product at 15 per cent less on the stock's value. The company is successful in selling products because of these strategies and due to the brand image which it has created in the minds of the consumer.

The generic value chain is made up of primary and secondary activities. The primary activity includes inbound logistics, outbound logistics, operations and sales and services whereas secondary activity includes firm infrastructure, technology, human resource management, information and technology and so on. Bunnings warehouse perfectly fits in the value chain analysis. Bunnings warehouse conducts primary activities as the main part of the business. The company receive are material such as stainless steel, wood and plastics which it stores and disseminate raw materials. In this entire inbound logistic activity, the company does not receive any margin. The company use the same raw material which it has prepared in the inbound logistics to manufacturing the products. It is observed that in this step as well, the warehouse does not receive margins (May 2019). Outbound logistics, on the other hand, is used for storing and transporting and distributing goods. In this process, the company's infrastructure is used along with the employee's equipment's. In this step, the Bunnings warehouse does not earn profit as there is no margin for it. However, the marketing and sales team obtain margin by selling out goods to the customers. Besides this, service is provided by the company with a motive to satisfy the need of the people and fulfil the demands by transporting, installing and repairing the products for the customers. The company earns a profit by collecting service fees from its customers. 

Firm infrastructure includes activities to complete the basic management of different departments such as finance, law, human resource and so on. In this process, the company is unable to earn a profit margin. Human resource management plays the most important role as they hire those employees who can become a valuable asset to the organization. Bunnings warehouse thus keeps some fund for getting an excellent staff member (Murcia, 2020). It is observed that better staff of the organization can help the company to promote improvement in those areas where the company lacks. This process helps in obtaining a margin for the company but indirectly. Bunnings warehouse also uses technology for its different process like manufacturing some equipment's or software for the online sale of the products. However, this process also does help the company to enhance its profit levels.

From the entire findings, it can be stated that in the procurement process, Bunnings Warehouse earns a profit on through service and sale and it is due to these reasons the company emphasis more on selling products to its customers and providing them excellent services so that they return to the organization again. The company use its power for the weekend and try to attract those Australian families who are looking for equipment's to fix the things on their own. The company brought to do it yourself (DIY) project for its customers (Oliver, Cicerale, Pang & Keast, 2018). According to Morgan, the one personality which purchases the products are married couples living separately in a small house with their kids. The company thus created a sausage sizzle for kids so that their parents can shop the required product without having any kind of difficulty. It is due to this the Australians have a DIY craze to improve their housing conditions.

Conclusion on Comparison of Quantitative Descriptive Analysis

It can be concluded from the above findings that the Bunnings warehouse support ownership factor. It also gains the advantage of its location and is trying to replicate their store abroad. It is because the company's culture is supported by internationalism. Apart from this, the company's cost leadership and excellent services for its customers are winning the hearts of the customer. The company despite having competitors in the market is still earning profit due to its strategies and DIY project. The company is putting more energy on improving its brand image so that maximum people take products from Bunnings warehouse instead of any kiwi companies in the market. The company has its own product line and it is due to this reason it gives cut throat competition to others in the market. The company management also support for the activities for new product development. It values its customers and thus customer prefer the organization whenever they have to improve or renovate their house. Bunning warehouse is successful in both Australia and New Zealand market.

References for Comparison of Quantitative Descriptive Analysis

Annabel, B., & Scrymgeour, M. (2018). Business: Retail matters: Getting to home base. AJP: The Australian Journal of Pharmacy99(1174), 54.

Ariyani, W., & 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, 9-14.

Keil, S. (2019). How to sack a customer. Plumbing Connection, (Autumn 2019), 54.

Mapley, M., Lu, Y., Gregory, S. D., Pauls, J. P., Tansley, G., & Busch, A. (2020). Development and validation of a low-cost polymer selective laser sintering machine. HardwareX8, e00119.

May, P. (2019). Get smarter: Why smarter warehouses demand smarter risk strategies. MHD Supply Chain Solutions49(2), 20.

Murcia, N. N. S. (2020). Enhancing strategic management using a quantified VRIO: adding value with the MCDA approach (Doctoral dissertation).

Oliver, P., Cicerale, S., Pang, E., & Keast, R. (2018). Comparison of Quantitative Descriptive Analysis to the Napping methodology with and without product training. Journal of sensory studies33(3), e12331.

Tan, B., Ji, Y., Hu, Y., Yuan, B., Hu, X., & Huang, Z. (2020). Pretreatment using diluted epoxy adhesive resin solution for improving bond strength between steel and wood surfaces. International Journal of Adhesion and Adhesives98, 102502.

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