Competition Analysis Based on Proposed Acquisition

   

Added on  2021-06-16

14 Pages3119 Words423 Views
Running head: COMPETITIVE STRATEGY Competitive StrategyName of the Student:Name of the University:Author Note:
Competition Analysis Based on Proposed Acquisition_1
1COMPETITIVE STRATEGYTable of ContentsIntroduction:...............................................................................................................................2Background................................................................................................................................2The Concerned Parties...............................................................................................................3Acquirer: Woolworths Limited.............................................................................................3Target: Renaissance Supa IGA St Kilda................................................................................3Other Supermarkets:...............................................................................................................3Transaction.................................................................................................................................4Inquiries Undertaken..................................................................................................................4Competition Analysis Based on Proposed Acquisition.............................................................5Futuristic Overview of the Proposed Acquisition......................................................................5Competitive dynamics of the Industry Where the Firms Compete............................................6Retail Market..............................................................................................................................6Market for Local Retail Supermarket.....................................................................................7Market for State-wide Retail Supermarket.............................................................................8Wholesale Procurement and Supply Markets.........................................................................8Issues Leading to Concern.........................................................................................................8Market Concentration.............................................................................................................8Existing Competitive Behaviour of the Target Market..........................................................9Barriers to Entry...................................................................................................................10Conclusion............................................................................................................................10References:...............................................................................................................................11
Competition Analysis Based on Proposed Acquisition_2
2COMPETITIVE STRATEGYIntroduction:The report gives an overview of competitive strategy in relation to the acquisition andstructure of Australian supermarkets. The supermarkets chosen here are Coles, Aldi andWoolworths. Coles represents a supermarket chain of Australia with headquarters inMelbourne and owned by the parent company Wesfarmers (coles.com.au 2018). GeorgeColes found the company in the year 1914 that presently operates close to 801 supermarketsacross Australia. The company boasts of close to 100,000 employees. Aldi represents aGerman low cost brand that entered the Australian market and brought in challenges forColes and Woolworths with its low cost structure (aldi.com.au 2018). Woolworths on theother hand represents compilation of divisions, brands and chain of Woolworths Group and isthe largest food retailers in Australia (woolworths.com.au 2018). The report however focuseson the Woolworths Supermarkets that represents a grocery chain store owned by theWoolworths Limited. The company together with its rival company Coles forms a duopolyand captures close to 80 percent of the Australian market. The profit of Woolworth rose to37.6 percent in the year 2017. The supermarket also holds a second position in the Australianmarket in terms of the revenue. The report provides an insight into Woolworths proposedacquisition of Renaissance Super ICA St Kilda analyzed by the Australian Competition andConsumer Commission (ACCC) in presence of other competitors like Coles and Aldi. Background The Australian Competition and Consumer Commission (ACCC) put forwardguidelines based on which market inquires undertaken for a proposed acquisition therebyleading to the anticipation of the final decision (King 2013). Any proposed acquisitionundergoes scrutiny by the ACCC before implementation of the final decision. ACCC putsforward a statement of the issues that put forwards an opportunity for all the interested parties
Competition Analysis Based on Proposed Acquisition_3
3COMPETITIVE STRATEGYthat includes the competitors, customers, stakeholders and shareholders for ascertaining andconsidering the preliminary issues recognized by the commission. The commission also helpsto provide a platform for merger and other parties with provisions of the more submission ifconsidered necessary. The Concerned PartiesAcquirer: Woolworths Limited Woolworths represents the largest retailer of grocery in Australia. Its operation alsoincludes merchandize stores, supermarket, liquor, petrol, home improvement and hardware.Target: Renaissance Supa IGA St KildaRenaissance Supa IGA St Kilda represents a supermarket that offers complete rangeof the fresh produce and the groceries (iga.com.au 2018). The supermarket also has a hugesection for liquor that offers both non-chilled and chilled products. Renaissance Supa IGA islocated at 64 Fitzroy Street and spread over an approximate area of 1,259 square metres alongwith facilities availability of sixty-three car parking spots. The supermarket also offers thecustomers with free parking facility for one hour through a redemption scheme. However,Nero Tadeo Nominees Pty Ltd owns the liquor licences of the company controlled by MrGeorge Altman. He also holds the responsibility of running and owning two supermarketsunder the brand of Renaissance Supa IGA.Other Supermarkets: Coles: Coles represent the leading liquor, food and convenience retailer owned by theWesfarmers Limited, a public listed company (coles.com.au 2018). Wesfarmers has variedoperations in insurance, chemicals, retail, energy, resources, industrial sectors and fertilizers.
Competition Analysis Based on Proposed Acquisition_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Competitive Strategy for Woolworths Supermarkets: An Analysis of Proposed Acquisition of Renaissance Supa IGA St Kilda
|14
|3179
|364

Competitive Strategy in the Context of Acquisition and Structure by Australian Supermarkets
|18
|3827
|429

Duopoly Market Structure
|3
|649
|324

Woolworths Strategic Management: Analysis and Recommendations
|9
|3261
|340

Strategic Management - Coles Supermarket
|10
|3069
|173

Overview of Metcash Limited in the Australian Supermarket and Grocery Stores Industry
|11
|1750
|432