Strategic Analysis B&Q

Strategic Analysis
B&Q

“B&Q is the largest home improvement and garden centre retailer in the UK and Europe and
the third largest in the world.”
(http://www.diy.com/diy/jsp/bq/templates/contentlookup.jsp?content=%2Faboutbandq)
Date accessed: 7th October, 2004





In what type of industry environment(s) (for example, embryonic or mature) does B&Q
operate?
How has B&Q attempted to develop a competitive strategy to protect its business-level
strategy? If, for example, it is operating in an embryonic or growth industry how has it
attempted to increase its competitive advantage over time? If, for example, it is operating a
mature or declining industry, how has it tried to manage the five forces of industry
competition?
What new strategies would you advise B&Q to pursue to increase its competitive advantage?
For example, what kinds of strategy towards buyers and suppliers should it adopt? For
example, how should it attempt to differentiate its products in the future?

Industry Environment ........................................................................1
Competitive Strategy ...........................................................................2
Porter’s (1979) Five Forces of industry competition .......................3
Cost Leadership and Differentiation Strategy .................................5
References ............................................................................................7
Appendix ..............................................................................................8
Please Note:
Website addresses are referenced within the text as Web:1, Web:2, Web:3 etc. with the full
URL at the end of the report in the ‘References’ section.

Industry Environment
The UK DIY and garden market experienced its most significant growth in the years 1993 to
2003, almost doubling in value, from £8.7 billion to £16 billion (Web:1). This rapid growth
was due to a number of factors, which were mainly...