Business Strategy: A Case Study of Australian Supermarket

Running head: BUSINESS STRATEGY
BUSINESS STRATEGY: A CASE STUDY OF AUSTRALIAN SUPERMARKET
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BUSINESS STRATEGY1
EXECUTIVE SUMMARY
This report undertakes an analysis of the concept of business strategy in the particular
context of the case study “Australian Supermarkets: Who Will Win And When?”. The
report thereby begins by offering an overview of the Australian supermarket industry
and also highlights the different important issues faced by it as discussed in the case
study. Next, an industry analysis of the Australian retail industry had been undertaken to
determine the business competition faced by Woolworths and Coles in the concerned
nation. Lastly, various strategic models like Porter’s Generic Strategies model, Ansoff
matrix and Bowman’s matrix had been used to recommend the strategic directions that
Woolworths and Coles need to follow in future.

BUSINESS STRATEGY2
Table of Contents
1.0 Introduction..................................................................................................................3
2.0 Overview of the Australian Supermarket.....................................................................3
3.0 Strategic issues highlighted by the case “Australian Supermarkets: Who Will Win
And When?”.......................................................................................................................4
4.0 Porter’s Five Forces Analysis of the Australian Retail Industry..................................6
4.1 Bargaining Power of the Buyers..............................................................................6
4.2 Bargaining Power of the Suppliers..........................................................................7
4.3 Threat of Substitutes................................................................................................7
4.4 Threat of New Entrants............................................................................................7
4.5 Industry Rivalry........................................................................................................8
5.0 Application of strategic model......................................................................................8
5.1 Porter's Generic Strategies model...........................................................................8
5.2 Ansoff Matrix............................................................................................................8
5.3 Bowman’s Matrix......................................................................................................9
6.0 Conclusion...................................................................................................................9
7.0 References................................................................................................................10

BUSINESS STRATEGY3
1.0 Introduction
As opined by Johnson (2016), an integral aspect of the present business
landscape is the fact that unlike the earlier times the customers in the present times
have more choices available on the score of the mushrooming of the different business
corporations in the last few decades. West, Ford and Ibrahim (2015) are of the
viewpoint that the enhancement of the number of choices or for that matter the options
that are available to the customers had substantially enhanced the business competition
experienced by the business corporations within the business markets of their
operations. More importantly, it had been seen that this had adversely affected the
business prospects or for that matter the growth attained by the different business
corporations in the present (Salavou 2015). However, at the same time a detailed
analysis of the contemporary business landscape succinctly reveals the fact that the
different business corporations in order to cope with the extensive business competition
that they experience within the business markets of their operation take the help of
different kinds of business strategies (Leonidou et al. 2017). In this relation, it needs to
be said that the business strategies which are being used by the business corporations
should be intended to create as well as capture value for it and also in alignment with
the requirements or the demands of the business markets of their operation. This report
intends to undertake an analysis of the concept of business strategy in the particular
context of the case study “Australian Supermarkets: Who Will Win And When?”.
2.0 Overview of the Australian Supermarket
Kotabe and Kothari (2016) are of the viewpoint that one of the most important
aspects of the retail landscape of the nation of Australia is the fact that more than 80%
of the market share of the concerned industry in Australia is being held by two retail
corporations, namely, Woolworths and Coles. For instance, it was seen that the retail
corporation Woolworths held monopoly within the retail landscape of the nation under
discussion here. However, after getting merged with Wesfarmers, Coles started to pose
real challenge or for that matter business competition to Woolworths. More importantly,
it had been seen that the majority of the products or the services offered by both the