The growth–share matrix
Transcript: The demand for house construction and demand for commercial and industrial building construction are two factors that affect the hardware wholesaling market in the future. Ju-Min Kim C3171757 Junyi Li C3191551 Thao Thanh Tran C3159415 Yuxin Zhang C3180394 Bunnings Conclusion Bunnings Swimming Pool and Spa Water Testing now available for free Mitre 10 Macro environment Trend help corporations to analyze their business units 4 types Cash cows is where a company has high market share in a slow-growing industry. Dogs are units with low market share in a mature, slow-growing industry. Question marks are business operating in a high market growth, but having a low market share. Stars are units with a high market share in a fast-growing industry High price Low price 1. Introduction 2. Growth about Mitre 10 3. Mitre's current macro marketing trends, competitive environment and customer and market situation 4. Porter's Five Forces 5. Sources of advantage 6. positional advantage 7. Marketing Mix 8. Conclusion Reference High quality -Threat of New Entrants. Low -Threat of Substitute Products. Medium -Intense Rivalry Among Competitors. High -Bargaining power of Suppliers. High -Bargaining power of Buyers. Medium Hardware Industry in Australia Mitre 10 Alliance-Based and Supply Chain Resources and Capabilities Ace suppliers Code-sharing Partnership with Accent, Grilled, Buy Right, Rockwell, etc. High quality Mitre 10 VS Bunnings Consumers can be divided into age groups: people aged 35 to 54, people aged 55 and over, and people aged 15 to 34. Products and services can be divided into seven parts: tools and equipment, Timber, buildings supplies, gardening tools, paint and paint supplies plumbing supplies and others. Marketing Mix Increasing profits through TV shopping Increasing the number of sales by providing some special products to construction company and decoration company increasing profits through providing more decorating products to customer Introduction Mitre 10 Less varieties Year Sales Growth 2002-03 12,909.3 0.0 2003-04 14,005.1 8.5 2004-05 13,889.1 -0.8 2005-06 13,402.8 -3.5 2006-07 12,936.1 -3.5 2007-08 12,966.0 0.2 2008-09 12,391.9 -4.4 2009-10 12,348.2 -0.4 2010-11 12,332.4 -0.1 2011-12 12,649.4 2.6 2012-13 13,378.0 5.8 2013-14 14,278.9 6.7 2014-15 14,849.0 4.0 Growth of sales in the whole hardware market Good geographic position without drastic competition Great marketing capabilities Perfected online shopping system Reasonable price Numerous stores and product category Good member system Mitre 10 is growing faster, acquisition with other company. However, need to promote their consumers. The growth–share matrix RESOURCES AND CAPABILITIES OF ADVANTAGE Established for over 50 years over 400 Mitre 10 stores => the second largest player in the Australian home improvement and hardware industry In 2011, Mitre 10’s sales are $800 million, profit of about $12 million In 2013, $950 million sales and $36 million profits Miter has grown significantly the most appropriate growth type for Miter 10 is Stars develops significantly in Australia $13 billion in annual revenue 1.3% annual growth from 2009–2014 Expect to grow 23% over the next five years to reach $14.2 billion 2016-17. Opportunity Identified Mitre 10 Good culture of employees Advanced information management technology named by partner Bunnings Warehouse is Australia's largest household hardware chain with 289 stores in Australia Home Timber and Hardware is Australia's third largest retail hardware chain owed by Woolworths Limited and Lew’s. Masters Home Improvement is an Australian Home Improvement chain operated by Woolworth and Lew’s. Porter's Forces Customer-Based Resources and Capabilities Low quality ABIS (2013). Mitre 10 Up, Masters Down, Burnings Strong. Retrieved from: http://aubis.com.au/.../mitre-10-up-masters-down.../# Charbonneau, S., Chitty, H. & Stuart, M. (2009). Marketing: real people, real choices (1st ed.) Prentice Hall New Zealand. Kotler & Amstrong, 2013 Principles of marketing (15th ed.). Englewood Cliffs, N.J.: Prentice Hall Mitre 10 (n.d). About us. Retrieved from: http://www.mitre10.com.au/About-Us/ http://nespresso-malongo-strategycomparison.blogspot.com.au/2013/12/nespressos-five-forces-analysis.html http://www.smartdraw.com/examples/view/7ps+marketing+mix/ Position of Advantage Thanks for listening Contents Internal Support Resources & Capabilities Market Situation Low quality Mitre 10 was born in June 1959 Mitre 10 is the trading name of an Australian retail and trade hardware store chain There are over 400 "Mitre 10" and its associated "True Value Hardware" franchises throughout Australia. Quality&Quantity Competitive Environment More varieties