Masters Home Improvement Case Study

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Masters Home Improvement 1. Overview of current situation Masters Home Improvement is an Australian home improvement chain that started the market in 2011, and it is managed by the joint venture between Woolworths Limited and Lowe’s, USA in order to create an opportunity for Woolworths Limited to expand its market. Bunnings is the market leader in this industry who gains 64% of total market share, followed by Mitre 10 with 13.0%, and Masters with 8.0% of market share (The Australian, 2016). The company’s revenue continuous increased since they started the business in 2011 to 2014, they gained total revenue around $1527 million in 2014 (Woolworths, 2015) but the company still got loss from their operation expenses. Moreover, the sales dropped…show more content…
The salient factor is the natural environment in terms of misunderstanding of the season. Masters ties its products with Lowes’ USA, and they launch the same products at the same period. On the other hand, they forgot regardless the seasons are different in these two countries. Another factor is the sociocultural environment, Masters works with the wrong target consumers who are female buyers by giving off a “premium” vibe because female is the man behind the decision making (Jaclyn, 2012), on the contrast, they are not usually the buyers. As a result, these two factors influence on the company revenue and consumer satisfaction, so Masters should understand the products in order to respond customer needs and create marketing strategies to the right…show more content…
According to Government of South Australia (2014), the right location is influenced to the successful business in particular retail businesses, but the wrong location determination is tough for the business growth. In 2015, Masters has 56 stores around Australia (Woolworths, 2015), and most of them were set up nearby its competitor who is Bunnings that make more difficult in the market competition. For example, there are 6 Masters stores in Brisbane; Everton Park, Tingalpa, Parkinson, Richlands, Bundamda and Springfield areas, and there are Bunnings store in the same areas where are not far away from Masters stores. Furthermore, the wrong location decision is affected to the demographic problem which is the target customers. Masters sets up its stores in the second rate areas which are the growth-belt suburbs, and consumers who live in the areas do not have the spending power that influence to the company

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