Setting the Bar for Competition in Australian Retail Industry

As Amazon enters the Australian retail market, local businesses will need to adapt and improve their products and services to compete. The Australian Competition and Consumer Commission (ACCC) plays a crucial role in ensuring a competitive market and promoting consumer welfare. To promote competition, ACCC should encourage Amazon to establish easier and more convenient approaches for setting up business operations in Australia. Additionally, ACCC should review the convergence of services and products offered by domestic and local retail providers to prevent unhealthy practices, such as predatory pricing. Finally, ACCC should consider formal mutual recognition of industry codes to facilitate Amazon's entry into the market.

Running Head: COMMUNICATION 1
Communication
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Contents
About the entry of Amazon into Australia......................................................................................3
Background......................................................................................................................................3
Position............................................................................................................................................5
Recommendations............................................................................................................................6

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About the entry of Amazon into Australia
The entry of Amazon in Australia as a major presence in the retail sector will lead in
pushing the local marketers and retailers for improving the experience of the customers. Being
the PR Manager for the Australian Competition and Consumer Commission (ACCC), the entry
of Amazon in Australia is very much favorable. The venture of the giant of the e-commerce
sector as an e-tail presence in the country of Australia will favor the revenue of the country.
The key aspects that are to have attention to are:
1) The report represents a significant and important illustration of the implications of the
entry of Amazon into the retail sector of Australia. Considering the history and evidence
of faring of Amazon in other global markets in the West, the entry of the retail giant is
very much favorable for the company (Arifon, 2014).
2) The entry of Amazon into the Australian market would assist in the development of e-
tail across the country as ACCC recognizes the National Competition Policy and
associated reforms which are critical to the development in the performance of the
economy of the country. This would assist in raising the standards of the people of the
country.
3) The availability of the services provided by the US based retail giant would increase the
competitive environment for the other retail companies in the market of Australia. This
would enhance the growth and increase in the strategic business development of various
retails companies which would ultimately benefit the revenues of the country. From the
perspective of ACCC, the involvement of Amazon in the Australian market would
increase the challenges for the other players in the market in gaining competitive edge.
Background
The Australian Competition and Consumer Commission (ACCC) is an independent
statutory authority of Commonwealth whose key role is to be in charge of the enforcement of the
Competition and Consumer Act 2010 along with a range of promotional competition, additional
legislation, regulation of national infrastructure and fair trading for the benefit of all the people
of Australia (De Bruycker & Beyers, 2015). Amazon is the company which in various ways is
very closely associated with the e-commerce platform. The company has evolved from a book
seller to a complete Wal-Mart on a virtual aspect on the products including Cookware, Music

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CDs, Games, and Toys, hardware and tools. Amazing has been advancing in its business strategy
of expanding the operations of grocery in the global market. The US retail giant has been
planning to launch as many as products and services as possible in the Australian market as
Australia seems to be a very attractive and potential market for business expansion. The plan of
Amazon to provide a whole catalog of a wide range of products such as takeaway food, fresh
food, electronics, books, fashion, etc. through the company’s popular membership program
Prime Now will be conducted by Amazon (Hoffmann, 2016). This will provide the other retail
players in the country with new goals in business to devise and improvise new strategies in
operations and structure of the business.
With the extensive service of the US giant retailer, the consumers in Australia will be
able to embrace the online ordering and delivery of grocery from Amazon. According to one of
the visions of ACCC, the growth of productivity and the commitment to policies of competition
in Australia are stalled and are in the need of reinvigoration. The entry of the Amazon with its
services of e-tail would increase the competition of the current retailing companies. Moreover,
the addition of Amazon into the market of Australia will resulting in resisting inclusion of goods
coming to the Australian market with GST from overseas (Jayachandran, 2014). It has been
observed that the consumers in the Australian market have been unable to have exposure to
proper e-tail services due to the sub-par online retail services as the market of Australia did not
have the best practice of e-tailing in the world.
The market of Australia does not have the best e-tailing service in the world which would
be facilitated by the introduction of Amazon. This will definitely have an impact on the business
scenario of the country due to change in the dynamics of the competition. This has to be
considered very optimistically in regards to the development of the economy as entry and
functioning of business operations of Amazon in the economy of Australia would set the bar of
competition to a higher level and the current retail business companies would need to work and
operate at higher and challenging terms.
The consumers of Australia are one step ahead in comparing the products available on the
global platforms and the products available in the local stores. This would also encourage the
local business to improve the quality of products they are dealing with which will eventually
increase the overall quality of goods and products that the country has (Jugo, Miholić & Žigić,
2015). The efforts made by the US retail giant would be tireless which would also influence

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other business and companies in the retail sector of Australia to increase their efforts in order to
not get slaughtered by the presence of Amazon. It has been observed from many reports by
experts regarding the boosting of the domestic sector of retail instead due to the entry of online
retail company Amazon in the market of Australia.
According to the studies conducted by experts, it has been found that Amazon has very
intricate and advanced software data and infrastructure. This US based retail company has been
leading the global market right from the software infrastructure aspects which would provide the
other software companies along with the retail and supply chain companies to look forward to
ways and strategies for integration of advanced technologies into their current business structure.
This is will lead to a very positive implication on the development of information and technology
sector of the Australian market. Increase in the development of numerous aspects of the
Australian market would result in the overall development of the economy of the market (Lock,
Seele & Heath, 2016).
Position
Being the PR Manager of Australian Competition and Consumer Commission, the role of
AACCC is very much significant in the analysis of the existence of a competitive market in the
country. ACCC has been supporting the welfare and prosperity of the Australian consumers
which can be very well materialized through the introduction of e-tail services of Amazon. The
role of ACCC has been revolving around the protection, strengthening and supplementation of
the way competition exists and works in the Australian industries and markets.
This imparts improvement in the efficiency of the Australian economy and the increase in
the welfare of the Australian population (McGrath, 2013). This directly denotes to the fact the
fact that ACCC will take measures regarding improvement in the welfare of consumers,
protection of competition and ceasing of the conduct which is harmful or anti–competitive to the
consumers. ACCC is also vigilant regarding the promotion of proper functioning of the markets
of Australia. All these aspects can be materialized through the introduction of Amazon in the
retail industry of Australia (Minozzi & Woon, 2013).
The role of ACCC is very much significant in the maintenance and the promotion of
competition in the Australian market which would be relevant after the introduction of services
of Amazon (Pallas & Svensson, 2013). The role and participation of ACCC in the entry of

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Amazon in the Australian retail sector would be very much significant in terms of protection of
safety and interests of the consumers and the assisting fair trading in the retail sector.
The inclusion of Amazon as an e-tail services provider would integrate the role of ACCC
in the promotion of economically efficient operation, investment and use in the monopoly
infrastructure of the country (Mitrovic, 2017). Further, the integration of Amazon as an online
retail service and foreign player in the Australian retail sector would require the role of ACCC in
an increase in the engagement of other Australian businesses with the wide range of categories of
businesses which would have significant implications on the overall revenue of Australia.
Recommendations
1) ACCC needs to integrate and encourage Amazon to promoting the creation of easier and
more convenient approaches and establishments facilities for Amazon to set up its business
expansion in Australia which would facilitate both the US giant retailer and the country to
flourish in the retail sector (Mitrovic, 2017).
2) ACCC needs to review the convergence in services and products which would be offered by
various other domestic and local retail service providers as an increase in the competition level in
the retail industry might result in unhealthy and unethical practices regarding the strategy of
pricing by such industries. Assessment of the fact whether the current interchange of finances
through the supply chain management of Amazon are effective in the provision of high-quality
services to the consumers in the Australian market is highly recommended (Murphy, 2014).
3) ACCC needs to give and promote consideration regarding the formal mutual recognition of
industrial codes to Amazon as applicable for the effective functioning of the new online entrant
in the retail industry which will in return have positive and encouraging implications on both the
retail and information technology industry (De Bruycker & Beyers, 2015).
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