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case of Australian Supermarkets Assignment

Added on - 17 Jun 2021

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Competitive strategy1Competitive strategy: The case of Australian SupermarketsNameStudent numberInstitutionTutorCourseCity/StateDate
Competitive strategy2Executive SummaryThe grocery industry in Australia is very competitive. In the center of this competition are the twogiants Woolworths and Coles Myer (Dwivedi, Merrilees, Miller & Herington 2012, p. 526). These twoare predominantly in charge of the market and control over 76% of the entire market. To get aperspective of the influence of these two, we look at the UK where the top 3 giants only control 50% ofthe market. While in The United States, the big supermarkets control only a mere 25% of the market.The combined sales of these two giants account for 8% of Australia's economy. The two have severalbranches and employ an estimated number of 250,000 workers ( Specifically, Coles Myer employs165,000 and Woolsworth employ 145,000). This is a report to analyze the how these competitivestrategies are chosen and what the supermarket chain do to achieve competitive advantage and gaincustomer loyalty.
Competitive strategy3IntroductionThe Australian Supermarkets have made the grocery industry in Australia the most competitive in theworld. In the centre of this competition are the two giants Woolworths and Coles Myer. These two arepredominantly in charge of the market and control over 76% of the entire market. To get a perspectiveof the influence of these two, we look at the UK where the top 3 giants only control 50% of the market.While in The United States, the big supermarkets control only a mere 25% of the market (James 2016,p. 103). The combined sales of these two giants account for 8% of Australia's economy. The two haveseveral branches and employ an estimated number of 250,000 workers.But despite their undisputed control of the market, there still exists bitter rivalry between the twocompanies. With the introduction, other giants like Aldi and Costco, the annual revenue is projected toincrease to 91.6 billion dollars for 50 billion dollars (Gallacher 2011, p. 147). This is projected tohappen in less than five years.The situation for the two already established giants is only getting worse. The introduction of ALDIand the announcement that Lidl will also target the Australian market has threatened the duopolycreated by these two giants (Low 2015, p. 5). When ALDI opened in 2001, Woolworth and Colesattempted to fight back the competition by implementing a cost-reduction method. But the invasion ofother giants is going to affect the duopoly as well as shrink the market share capital for other smallerchains or independent retailers (Sutton-Brady, Taylor & Kamvounias 2017, p. 1051).The most accurate data on the grocery industry in Australia is gotten from looking the industrydynamics from each state.This report aims to look at the business strategies applied by some of the giants as well the competitivestrategies and the competitive dynamics used to gain an advantage over the competition. How thesecompanies strive to keep up their aggressive expansion amidst intense competition from already
Competitive strategy4existing brands to threats from new brands intending to join.But despite their undisputed control of the market, there still exists bitter rivalry between the twocompanies. With the introduction, other giants like Aldi and Costco, the annual revenue is projected toincrease to 91.6 billion dollars for 50 billion dollars. This is projected to happen in less than five years.The situation for the two already established giants is only getting worse. The introduction of ALDIand the announcement that Lidl will also target the Australian market has threatened the duopolycreated by these two giants. These companies employ certain competitive strategies in order to keep uptheir aggressive expansion amidst intense competition from already existing brands to threats from newbrands intending to join. A competitive strategy can be defined as an assortment of how theorganisation will contest, a scheme of the organization’s strengths and weaknesses compared to thoseof its competitors. In addition, it is argued that an organization’s aim is to successfully compete withother organizations.Competitive StrategyOrganized strategies are important to organizations in industries that are littered with a variety ofchoices provided to customers. If an organisation intends to succeed in that kind of an environment, itis crucial for the organisation to classify it triumphs in a basic and convincing way.A competitive strategy can be defined as an assortment of how the organisation will contest a schemeof the organization’s strengths and weaknesses compared to those of its competitors (Clemons, Goh,Kauffman & Weber 2013, p. 5). For example, a supermarket can select to add to their services a newcharacteristic offered only in special condition should it determine that it cannot rival with the othersupermarkets on prices alone.An aggressive competitive strategy is a list of activities that are made by an organisation to add on tothe competitive advantage of the organisation over its rivals (Spinelli Schelini, Dai Prá Martens &
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