Economics of Australian Retail Industry: Woolworths

Running head: ECONOMICS
Economics
Name of the student
Name of the university
Author note

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ECONOMICS
Table of Contents
Executive summary....................................................................................................................3
Introduction of company............................................................................................................3
Industry background...................................................................................................................5
The market structure of the company.........................................................................................6
Factors that influence demand for the company’s products.......................................................7
Factors that influence supply for the company’s products.........................................................8
Elasticity.....................................................................................................................................9
Impacts of an event on the industry/company............................................................................9
Conclusion................................................................................................................................10
Reference list............................................................................................................................12

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ECONOMICS
Australian retail industry: Woolworths
Executive summary
The following paper states about Woolworth, which is one of the famous retail
industries in Australia and is known to operate in an oligopoly market. The first part of the
paper consists of introduction which states the background of Woolworths and how does it
operate. The second part consist of the background of the industry in Woolworths fit into
which is the supermarket retail. This part states that the retail industry of Australia is very
famous all over the world. The third and the fourth part states the demand and supply factors
of the products sold by Woolworths. The fifth part of the paper states an event recently
affecting the company which is the introduction of AASB 16 Leases. Lastly, the conclusion
summarizes the paper in a brief manner.
Introduction of company
Woolworths supermarkets are the Australian supermarket store chain which is known
to been owned by Woolworths Group which is known to founded in 1924. Both Coles and
Woolworths are known to form duopoly of the Australian supermarkets which are known to
account for more than eighty percent of the Australian market. The headquarters of
Woolworths are in Bella Vista, Australia. This particular company is known to specialize in
selling groceries, magazines, health and beauty products, pet and baby supplies and stationary
items. Woolworths presently operates in more than 1000 stores across Australia
(Woolworths.com.au. 2019). In the year 1997, Woolworths opened its very first metro
convenience store in Sydney. There are more than 100,000 employees working under
Woolworths.

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ECONOMICS
The company is known to earn a revenue of $56.726 billion in the year 2008. In the
year, 2012, Woolworths Limited is known place 70 shopping centres into a real estate
investment trust which is known as shopping centres Australian Property Group. In the
present year. The main vision of Woolworths is known to provide the quality products as well
as services to the customers all the time through the price strategies and human resource
strategies. The main goal of this particular retail company is to increase its efficiency and also
become cost effective in nature. On the other hand, the main mission of Woolworths is to
deliver the customers the right shopping experience every time. In the year 2008,
Woolworths was known to launch a new identity plan in order to replace the Safeway brand
of Victoria for uniting all the common brands under Woolworths.
Figure 1 Retail industry turnover in Australia