Business Model and Operations
Adairs Limited is a retail business that deals in home furnishings with stores across Australia and New Zealand. The business utilizes an Omnichannel business model that enables it to sell its products in physical stores and online subsidiaries, namely Adairs Limited and Mocka (Adair, 2020). Through the sales of design-led, customer-focused, and in-house designed products directly to customers, the business can reap a lot of profits making it among the most successful retailers dealing in furnishings and decoration products.
Main Products
Adair primarily deals in the production of home furniture and interior designing services for their clients. The company’s main products include bedding, furniture, storage, homewares, kids and nursery school items, and furnishing. The company also provides bedroom and bathroom luxury products (Adairs, 2022). In addition, the company provides a wide range of high-quality and luxurious furniture. For decoration, the company specializes in light fitting, artificial indoor plants, vases, baskets, ornaments, and decorative trays.
Operation Location and Outlets
Adairs Limited is based in Scoresby, Australia, a suburb of Melbourne. The company also has 140 store outlets across Australia and New Zealand, where it has most of its physical stores (Adairs, 2022). The company has corporate offices in most of the cities in Australia and New Zealand. Through such physical stores across Australia and New Zealand, the company can meet its clients’ delivery and design needs across its market (Adairs, 2022). The retailer sells its products and services in home furnishings, furniture, and decoration product markets.
Main Competitors
Adair’s main competitors are Bed Bath N’ Table, Amart Furniture, fantastic furniture Pty, Snooze, and Lincraft. The competitor deals in similar products and services, which range from home furniture, fittings, and home décor. These companies compete for the customers of home furniture and interior design products and services (Adair, 2020). The competitors specialize in the provision of substitute products and services, creating a significant challenge for the business, which has to enhance the quality of their products and develop competitive business strategies to keep up with the competition.
Industry Analysis
Based on the nature of operations that Adair Limited engages in, rivalry among existing companies and the threat of substitute products are the main forces that pose the most significant impact on the industry in which the company competes. The furniture, interior decor, and fitting industry is a vibrant industry with many players. According to Porter (n.d), rivalry among existing companies takes various forms, including price, discounts, the introduction of new products, advertisement campaigns, and improvement of services. Increased industry competition limits an organization’s profits for selling within a specific market. The fashion and design industry in Australia and New Zealand is flooded with well-established companies. Brands like Bed bath N’ Table, Amart furniture, Fantastic Furniture Pty, Snooze, and Lincraft have a significant market share in the furniture, fittings, and decor industry (Adair, 2020). Such companies have a considerable impact on the operations of Adar Limited in the industry.
The threat of substitute goods is one of the main issues that affect Adairs. The Australian market’s furniture, fittings, and interior decor have various players who offer substitute goods and services to those provided in Adair. According to Porter (n.d), substitute goods perform similar functions as a product sold in industry, enabling customers to choose from various goods and services. The presence of substitute goods within a market provides both direct and indirect threats to existing businesses within an industry. It is presumed that when the threat of substitute products is high, it influences the profits that the leading players within the industry get.
Rivalry from existing firms is another factor that significantly impacts the industry in which Adairs operates. The number of competitors that Adair Limited has creates the likelihood of a significant threat of competition due to the similar or substitute goods they offer (Adair, 2020). Such threats make it reasonable for Adairs to develop strategies or products that give them a competitive advantage over their competitors.
References
Adair. (2020). Annual Report 2020 [Ebook]. Adairs. Web.
Adairs. (2022). Adairs.com.au. Web.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 25-40.