Economics for Business: Woolworths Market Analysis

Running Head: ECONOMICS FOR BUSINESS
ECONOMICS FOR BUSINESS
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Table of Contents
Introduction............................................................................................................... 2
Introduction to the company........................................................................................... 2
Industry background.................................................................................................... 2
The market structure of the industry................................................................................. 3
Factors that influence demand for the company’s product......................................................4
Factors that influence the supply of the company’s product(s).................................................6
Elasticity.................................................................................................................. 7
Impacts of an event on the industry/company......................................................................8
Conclusion.............................................................................................................. 10
References.............................................................................................................. 11

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Introduction
The knowledge about economics could be effective for evaluating the situation of demand
and supply and make a decision in favour of the organization. This report takes into
consideration about background of Woolworths. It also demonstrates current situation of the
retail industry. It discusses the market structure of Woolworths. Further, this report evaluates
many factors, as it could influence the demand as well as the supply of the organization’s
goods. Moreover, it critically examines the elasticity that practiced for influencing the overall
demand of the organization. It also discusses events of Australia that effect the retail industry.
Introduction to the company
Woolworths is Australia is the largest chain of a supermarket. Woolworths has more than
115,000 members of a team member. It deals with different distributions stores and offices
for offering reliable services to the organization. This organization has ensured the quality of
products and services. It delivers more than 96% of quality products and services. It also
offers fresh meat to their consumers. It makes the Woolworths to the Australian market.
This makes Woolworths Australia’s Fresh Food People (Woolworths, 2019).
Industry background
From the evaluation, it is addressed that the Australian retail industry is increased by 4.6%, as
it show the higher growth of retail industry. The sale of firm is improved by 3.7%. Australia
recoded a high per capital GDP on USD 50,000. It was the second average wealth per capital
income country (Australia retail sector - growth, trends and forecast, 2019).

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(Source: Australia retail sector - growth, trends and forecast, 2019).
(Source: Australia retail sector - growth, trends and forecast, 2019).
With respect to the above table, it is also founded that number of investment deals has been
increased that demonstrated the growth of retail industry.
The market structure of the industry
Woolworths has used the oligopoly structure of the market to operate their business and
sustain its position in the marketplace (Woolworths, 2019). Moreover, it is addressed that
Coles and Woolworths are two famous organizations that delivers supermarket services to
their consumers. In addition, it is examined that firms of this industry have power in the
setting of prices for differentiating the goods in the marketplace. This organization has faced
many challenges at the time of operating in this industry. (Thaler & Ganser, 2015). In the