Competitive Strategy of Australian Supermarkets

Running Head : COMPETITIVE STRATEGY OF AUSTRALIAN SUPERMARKETS
COMPETITIVE STRATEGY OF AUSTRALIAN SUPERMARKETS
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1
Executive summary
The report deals with a case study of Australian supermarkets Coles and Woolworths , along
with its German competitor Aldi. Based on this case study, various aspects of competitive
strategy are discussed such as business strategies, competitive dynamics, international
strategies, corporate strategies and acquisition & structure. The theories of strategic
development and implementation are applied to these aspects.
This report discusses various competitive strategies with respect to Woolworths and Coles
such as business strategies, competitive dynamics, international and corporate strategies and
acquisition structures by applying Porter’s generic forces to both companies Woolworths and
Coles.

2
Table of Contents
Introduction................................................................................................................................4
Brief summary of the case..........................................................................................................5
Identification of strategic issues.................................................................................................6
Business strategies.....................................................................................................................6
Competitive dynamics................................................................................................................9
Corporate Strategy.....................................................................................................................9
1. Allocation of Resources..................................................................................................9
 People-.......................................................................................................................10
 Capital........................................................................................................................10
2. Organizational Design...................................................................................................10
 Head office (Centralized vs. Decentralized)-............................................................10
 Organizational structure (reporting)-.........................................................................10
3. Portfolio management...................................................................................................10
 Managing risk............................................................................................................10
 Generating returns.....................................................................................................11
 Incentives-.................................................................................................................11
Acquisition Structure...............................................................................................................11
Stock purchase.....................................................................................................................11
3.Merger...............................................................................................................................12
International Strategies.............................................................................................................12

3
Application of Generic Strategies on Coles and Woolworths.................................................14
Cost leadership.....................................................................................................................14
Differentiation:.....................................................................................................................14
Cost focus :...........................................................................................................................15
Differentiation focus:...........................................................................................................15
Conclusion................................................................................................................................16
REFERENCES.........................................................................................................................17