Buttles Analysis Business & Marketing Essay Research (Essay Sample)

A report on Buttle’s
Table of Contents
Executive Summary3
Introduction3
The Building Materials Business Environment4
Key Strategic Issues9
External Factors10
Conclusion19
References20
Appendices24
Appendix 1 – SWOT Analysis24
Appendix 2 – Pestle Analysis28
Appendix 3 – Porter’s Value Chain Analysis31
Tables
Table 1 - Buttle’s Internal Operations Comparatives5
Table 2 – Excerpt from Porter’s Value Chain8
Table 3 - SWOT Analysis11
Table 4 - Pestle Analysis16
Figures
Figure 1 - Market Position of Firm’s In the Building Materials Sector6
Figure 2 - Buttle’s, Hanson and Dekko revenue, 2000 to 20157
Executive Summary
The building materials segment Buttle’s operates in is a highly competitive sector since companies are resellers that all essentially offer the same materials and products that leaves scant room for price adjustment due to tight margins. This operating constraint means companies have had to build reputations for service, an ability to craft specialised pricing for customers and clients based on materials costs, internal operating expenses and service.
The above provides a harsh summary of the constraint realities of this sector where there is little to distinguish one company from another. This report uncovered that strategy formulation is also constrained as the operative inputs in terms of offering building supplies, readily available from a host of competitors, leaves little room for differentiation except in terms of services and long-term relationship building. These latter aspects represent the arena for strategy development and a basis for providing customers and business clients with reasons to select Buttle’s due to the indistinguishable nature of building material differences and pricing that can only be negotiated to a small degree.