Strategic Management Analysis of Coles Supermarket in Australia

Running head: STRATEGIC MANAGEMENT
Strategic Management
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1STRATEGIC MANAGEMENT
Executive Summary
The report has helped in analysing the external environment that affects the Coles
Supermarket and this caused huge impact on the business. The report has helped in
understanding the generic and business level strategies that has helped in understanding the
issues and solve them effectually.
The main aim and purpose of the report is to understand the different strategies that has
helped the company in gaining competitor analysis. Proper PESTEL and SWOT analysis has
helped in gaining knowledge on competitors and helped in solving the issues.

2STRATEGIC MANAGEMENT
Table of Contents
Introduction................................................................................................................................3
Description of Coles and industry analysis................................................................................3
Main Challenges.........................................................................................................................4
Macro Environmental Analysis..................................................................................................4
PESTEL analysis of retail industry........................................................................................4
Industry Analysis.......................................................................................................................6
Brief Description of life cycle of Retail Industry...................................................................6
Five Forces Analysis..............................................................................................................7
Company Analysis.....................................................................................................................8
Competitor Analysis.................................................................................................................10
Strategy Analysis.....................................................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12

3STRATEGIC MANAGEMENT
Introduction
The report helps in analysing the different kind of macro environmental factors that
are impacting the company along with the industry. The company that has been selected is
Coles in the case study and it is the comparison between the Coles and Woolworths
Supermarket. The industry analysis has to be done with the description of the life cycle stage
of the retail industry along with five forces analysis in an effectual manner.
The main aim and purpose of the report is to understand the analysis of the company
with the different capabilities and resources along with different core competencies. Proper
competitor analysis is required to be done effectively as this will help in analysing the linkage
with the Porter’s Five Forces analysis.
Description of Coles and industry analysis
Coles is one the Australian supermarket that is headquartered in Melbourne owned by
the parent company Wesfarmers. On the other hand, Woolworths is one the largest
supermarket chains that is based in Australia as well and it has huge competition with Coles
as well.
Coles was founded in the year 1914 in Melbourne and the company operates more
than 801 supermarkets throughout the entire Australia. Coles has more than 10000 employees
and their rival is Woolworths that has occupied more than 80% of the market in Australia as
well.
Both Coles and Woolworths belongs to the retail industry wherein it is seen that both
of them are the top performers in the entire Australian market. Both the supermarkets have
gained competitive advantage in the market that has helped them in succeeding as well in the
market (Tantalo and Priem 2016).