Coles Competitive Environment: Economic Trends, Innovation, and Changing Tastes

AUDIT

Coles
Competitive environment
When the new players enter into an industry it becomes difficult for the existing ones to
continue its regular business activities. However, a firm can remain unaffected of these new
entrants if it makes alterations in its operations and expands its business. The best technique
that can be used by the Coles in such a scenario can be to imitate the strategies of these new
players with a touch of little uniqueness. Big players in the grocery industry Coles,
Woolworths are suffering from similar contractions arising out of the entrance of new
players.
It is very rare that Coles and Woolworths have different pricing for the same product. Pricing
of product is same together with online shopping. Both the company offer the same rules for
delivery that is the delivery is free when the amount exceeds $100.
Changing tastes uptrend value chain arrangements
The supply chain arrangements of Coles are suffering largely due to the alterations in what
Australians are purchasing during the time of checkout (IBIS world, 2018). This is also why
the retailers are unable to plough higher profits in comparison to the producers that are
manufacturing foods that are better in quality and has a lot of health benefits. As the
Australians are more aware of what goes into making of a product and are well versed with
the health benefits of various products, therefore, they are less likely to purchase products
that are unhealthy and fattening. This is ultimately impacting the businesses of grocery
retailers (Morgan, 2018). Their sales are declining and as a result of which there profits too
are showing a downward trend. This indicates the need for the retailers to become extra cost
competitive and focus on increasing its sales.
Innovation is disrupting business models
Technological innovation brings about a revolution in an industry. It allows an organization
to not only transform the products its offers but also itself as well. It is important to analyse
the level of popularity of a new technology before implementing the same. Also, it must be
ensured that how rapidly such technology can impact the revenues of the rivals of an
organization (Morgan, 2018). Analysing these aspects of a new technology before its
implementation will allow an organization to evaluate the level of urgency that is needed so
as to match the technology or detect its better version or an alternative.
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