Business Strategy for Coles Supermarkets

Business
Strategy

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Competitive Strategy...............................................................................................................................3
Performance measurement.....................................................................................................................3
Balanced scorecard..................................................................................................................................4
Recommendations...................................................................................................................................4
CONCLUSION...............................................................................................................................................5
REFERENCES................................................................................................................................................6

INTRODUCTION
Business strategy refers to the plans which a firm can use in order to achieve its various
goals and objectives and obtaining strategic advantage over its competitive firms (Akter and
et.al., 2016). This project is based on Coles Supermarkets which is an Australian supermarket
headquartered in Melbourne, Australia. It will discuss the strategies which can adopt in order to
increase its performance.
MAIN BODY
Competitive Strategy
Competitive strategy is a long-term action plan which a company needs to develop in
order to get ahead of its competitors effectively. The competitive strategies which can be used by
Coles Supermarkets are as follows-
Cost leadership- In this strategy, costs are reduced so that profits can be maximized
effectively (Anwar and Hasnu, 2016). Coles Supermarkets can use this strategy so that it can
raise its profit share effectively. This will allow it to gain more space in the market through
enhanced market share.
Differentiation- In it, products are differentiated from that of the competitors so that
customers can easily recognize the difference. It can be used by Coles Supermarkets in order to
make its products appear different from the other companies operating in the market.
Cost focus- In it, specific focus is made on the certain market segments where the costs
can be reduced so that profits can be increased. It can be used by Coles Supermarkets in order to
target specific markets with lower prices.
Differentiation focus- In it, those segments can be focused on where differentiation in
products can be done effectively by the company. Coles Supermarkets can use it for gaining
sustainable advantage.
With regards to supermarkets operating in Australia Coles Supermarkets can use cost
leadership strategy so that profits can be increased.
Performance measurement
Performance measurement is a system through which information is collected about the
various processes in an organization and performance is measured. This is done in order to find
out deviations and variances if any so that they can be removed effectively. Coles Supermarkets
should use the following steps for measuring performance-