Bruynzeel Kitchens is a Dutch company that manufactures and sells kitchens. In 2005, it aimed to double its 56% market share in construction and expand into retail where it only had 3-4% share. It explored retail to gain more profit and diversify from relying too heavily on construction. However, its company structure did not support retail and it faced issues with supply chains and the complexity of 40 million possible kitchen combinations. Bruynzeel dropped from 1800 to 300 suppliers, implemented lean manufacturing, and built an experience around customers. By 2012, it grew its retail stores from 19 to 41 while its construction market share declined.

1. Chuan Shi MIAO
David Lacey

2. Bruynzeel Kitchens
MASTERING COMPLEXITY

3. Intro
 Dutch Company
 Make /Sell Kitchens

4. 2005
Situation Aims
 56% Market Share  Double its market share
(Construction ) (Retail)
 Didn't wish to exceed 60%  Maintain lead
 3-4% Market Share (Retail) (Construction)
 93% Brand Recognition  Expand into Europe
among Dutch people

5. Exploration
Reasoning Issues
 More profit in retail  Company structure didn't
 Overreliance on support retail
construction  Poor supply chain
 2000 stores synchronization
 40 million combinations
 More demanding
customers

6. Changes
 Dropped from 1800 to 300 suppliers
 Implemented Lean manufacturing
 Management stated they wanted to create a
car factory that builds kitchens
 Built an experience around the customer

7. Excluded information?
 Bruynzeel Kitchens was a division of
Bruynzeel
 Boplac is a forestry company that operates in
Africa
 What is unclear is the relationship that exists
between Bruynzeel and Bruynzeel Kitchens at
present

8. Value Chain

9. Success?
Year Store Qty
 41 Retail stores 2004 19
2005 23
2012 41
 Decline in construction
 ERP failure can destroy a company

10. Space utilisation
 How many home offices in the world?
 Are they fit for purpose?

11. Industry
 Competition from German companies
 Mid to Low ranges are gaining popularity
 Timber is gaining market share
 Access is this years issue
 Inter cultural meaning

12. What is a Kitchen
China Ireland
 Place to prepare, store and  Place to prepare, store and
consume food consume food
 Isn't it?  Isn't it?

13. What do we do in them
China Ireland
 Cooking  Listen to the radio
 Eating  Read the paper
 Talk  Entertain
 No oven generally  Talk
 Ironing

14. Chinese Kitchen Market

15. What’s going on?
 Political Environment
 Economic Environment
 Social cultural Environment
 Technology Environment

16. Future
 Design for people as well as uses
 Space developers not kitchen manufacturers

17. Q &A ?