Competitive Strategy in the Context of Acquisition and Structure by Australian Supermarkets

Running head: COMPETITIVE STRATEGY
Competitive Strategy
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COMPETITIVE STRATEGY
Executive Summary:
The report aims at providing an insight into competitive strategy in the context of acquisition and
structure by Australian supermarkets. The report commences with the overview of Australian
Competition and Consumer Commission (ACCC) on the proposed acquisition by Woolworths.
There is also discussion of the involved parties in the process of acquisition with a focus on the
acquirer and the targeted supermarket. There are also discussions about Australian supermarket
Aldi and other participants like the Metcash Limited. The report also discusses about the
transactions involved in the acquisition and the inquiries undertaken for proceeding with
acquisition. There is also an analysis based on the proposed acquisition along with a mention of
the future overview. There are also discussions about the competitive dynamics of the industry
where the firms are believed to compete. Through the report, it is possible to get an insight about
the status of the retail market as proposed by ACCC. The report also puts forward the statement
of issues, competitive behavior of the target market and the higher barriers to the entry.

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COMPETITIVE STRATEGY
Table of Contents
Introduction:....................................................................................................................................4
Background: ACCC Overview of the Proposed Acquisition..........................................................5
The Involved Parties in Acquisition:...............................................................................................5
The Acquirer: Woolworths Supermarket...........................................................................................5
Targeted Supermarket: Renaissance Supa IGA of St Kilda.............................................................5
Other Supermarket Retailers of Australia........................................................................................6
Aldi Australia:.......................................................................................................................................6
Coles.......................................................................................................................................................6
Some Other Participants..................................................................................................................6
Metcash Limited...................................................................................................................................6
Transaction Involved in Acquisition...............................................................................................7
Inquiries Undertaken for Proceeding with the Acquisition:............................................................7
Analysis Based on Proposed Acquisition of Woolworths...............................................................7
Future Overview of the Proposed Acquisition of Woolworth.........................................................8
Competitive Dynamics of Industry Where the Firms Will Compete..............................................9
Status of the Retail Market..............................................................................................................9
Market for Local Retail Supermarket...............................................................................................10
Market for State-wide Retail Supermarket......................................................................................11

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COMPETITIVE STRATEGY
Wholesale Procurement and Supply Markets..................................................................................11
Statement of Issues Put Forward by ACCC on Proposed Acquisition..........................................11
Competitive Behaviour of the Target Market................................................................................13
Reasons for Higher Barriers to Entry............................................................................................13
Conclusion:....................................................................................................................................14
References:....................................................................................................................................14