Business Strategy for Australian Supermarkets: A Case Study Analysis

Running Head: Competitive Strategy
Competitive
Strategy
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Competitive Strategy 1
Contents
Introduction......................................................................................................................................1
Summary of the Case.......................................................................................................................1
Analysis of Strategic Issue...............................................................................................................1
Business Strategy.............................................................................................................................2
Use of Business Strategy in the Case..........................................................................................3
Conclusion.......................................................................................................................................4
Recommendation.............................................................................................................................4
References........................................................................................................................................5

Competitive Strategy 2
Introduction
The aim of this report is to explain the reader about the meaning and use of business
strategy. Business strategy refers to the long term plan of action that is designed to help
the business to sustain their image in the market and grow. Strategy refers to the plan
inculcated by the management in the organization with an aim to strengthen its
performance and become competitive as well (Chang 2016). The case study of
Australian Supermarkets competition and rivalry is taken into account for the analysis of
the strategy. The report includes analysis of the case and the strategic issue along with
the implementation of diversified business strategies for them. Further, the fact should
be noted that the case study underlines the different attributes of the supermarket along
with the challenges faced by companies survive in such competitive environment. More
details about the paper are discussed below:
Summary of the Case
The case explains the presence of different organizations in the Australian supermarket
industry along with the challenges faced by other small organizations to manage their
growth in high level of competition. Coles and Woolworths are two large and extremely
famous organizations that are present in the Australian supermarket industry and cover
around 80 per cent of the activities happening in the industry. The dominance of these
two companies reduces the efficiency of other companies. Later on IGA (Metcash
brands) have also partly challenged the activities of both the large retailers in the
business environment. However, with the emergence of low cost discounted stores in
the business environment, the companies Coles and Woolworths have started facing
stability issues in the business environment.
Aldi is a German discounted retail chain store that has recently entered in the market of
Australia. Entrance of Aldi will make the life of Coles and Woolworths difficulty as they
are already struggling to compete with each other and emergence of new competitor will
displace their position in the external market. Further, it should be noted that Coles and
Woolworths are far more than just retail supermarket stores as Coles is a part of
Wesfarmers that is an international conglomerate in the international business
environment. Lastly, it should be noted that the entrance of Aldi has disturbed the
activities of all the retail companies present in the Australian industry. The Woolworths
strategies challenge IGA system due to which its efficiency is reduced in the market. On
the other hand Aldi is playing major role in negatively influencing the position of big
firms like Woolworths and Coles in the country. Thus, such activities make it difficult for
Woolworths to sustain its position in the market while achieving for growth as well.
Analysis of Strategic Issue
Competition and differentiation are the biggest strategic issue given in the case
analysis. Initially Woolworths was facing competition with Coles present in the
Australian supermarket. As discussed in the case that these two are the major