Economics for Business: Woolworths Group in the Retail Trade Industry of Australia
Added on 2023-01-06
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Economics for Business
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Introduction to the company........................................................................................................1
Industry/sector background.........................................................................................................2
The market structure of the industry/sector.................................................................................2
Factors that influence demand for the company’s product(s).....................................................3
Factors that influence supply of the company’s product(s).........................................................3
Elasticity......................................................................................................................................4
Impacts of an event on the industry/company.............................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Introduction to the company........................................................................................................1
Industry/sector background.........................................................................................................2
The market structure of the industry/sector.................................................................................2
Factors that influence demand for the company’s product(s).....................................................3
Factors that influence supply of the company’s product(s).........................................................3
Elasticity......................................................................................................................................4
Impacts of an event on the industry/company.............................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
INTRODUCTION
Economics is a field of study which is concerned with demand, supply, production and
consumption of products and services in an economy (Barberis, 2013). Economics for business is
a branch of this study which is concerned with the decisions made by a business organisation that
must be aligned with the economic outputs of a nation. The main aim of this report is to build an
understanding regarding the economic aspects of an industry and the businesses operating in that
industry. For this purpose, the industry that has been chosen for consideration is Retail trade
industry of Australia and the company selected and which is engaged in this industry is
Woolworths Group. The present report will include introduction to the selected organisation and
industry along with the evaluation of the market structure of selected industry. Furthermore, this
report will include various factors that impacts the demand and supply of certain products
offered by the selected company. Lastly, elasticity concept in context of certain products will be
analysed along with the impacts of an event on the industry/company.
MAIN BODY
Introduction to the company
Woolworths is a supermarket chain company that has owned grocery stores in and around
Australia. This company is a large scale organisation which was established in 1924 and
currently has headquarters in Bella Vista, Australia. The Woolworths Supermarket is a company
owned by Woolworths Group that employs 0.2 million employees approximately. This company
is a growing organisation which even has strong digital presence and believes in delivering
quality products (Woolworths introduction, 2020). This company operates in retail trade industry
of Australia and retails various products including groceries, home appliances and other regular
use products. The main product that is focused in this report as well is “groceries”. This company
is engaged in retailing fresh food products with the motto of delivering healthy products.
Economically, this company is the most revenue generating organisation in retail trade industry
in Australia. Woolworths has various competitors that compete for market share in market. This
company has changed the overview of the retail industry by achieving a competitive edge in its
market. The products and services of this company are highly demanded in market making it a
high revenue generating enterprise.
1
Economics is a field of study which is concerned with demand, supply, production and
consumption of products and services in an economy (Barberis, 2013). Economics for business is
a branch of this study which is concerned with the decisions made by a business organisation that
must be aligned with the economic outputs of a nation. The main aim of this report is to build an
understanding regarding the economic aspects of an industry and the businesses operating in that
industry. For this purpose, the industry that has been chosen for consideration is Retail trade
industry of Australia and the company selected and which is engaged in this industry is
Woolworths Group. The present report will include introduction to the selected organisation and
industry along with the evaluation of the market structure of selected industry. Furthermore, this
report will include various factors that impacts the demand and supply of certain products
offered by the selected company. Lastly, elasticity concept in context of certain products will be
analysed along with the impacts of an event on the industry/company.
MAIN BODY
Introduction to the company
Woolworths is a supermarket chain company that has owned grocery stores in and around
Australia. This company is a large scale organisation which was established in 1924 and
currently has headquarters in Bella Vista, Australia. The Woolworths Supermarket is a company
owned by Woolworths Group that employs 0.2 million employees approximately. This company
is a growing organisation which even has strong digital presence and believes in delivering
quality products (Woolworths introduction, 2020). This company operates in retail trade industry
of Australia and retails various products including groceries, home appliances and other regular
use products. The main product that is focused in this report as well is “groceries”. This company
is engaged in retailing fresh food products with the motto of delivering healthy products.
Economically, this company is the most revenue generating organisation in retail trade industry
in Australia. Woolworths has various competitors that compete for market share in market. This
company has changed the overview of the retail industry by achieving a competitive edge in its
market. The products and services of this company are highly demanded in market making it a
high revenue generating enterprise.
1
Industry/sector background
The industry selected in this report is retail trade industry of Australia. This industry is the
most profitable and growing sector of this region which contributes 4.1 % of the gross domestic
product of Australia. The number of businesses working in such industry are 140000
approximately that helps in generating employment of around 10%. This industry not only
employ the people of Australia but also fulfil all the requirements of Australian population. The
retail industry is considered as most diverse industry of this region as it employs people around
the world and there are various types, scope and variety of businesses present in this market. The
overall demand for this industry is higher than the non retail services in Australia. While
analysing the overview of this industry, it is important to note that this industry had faced ample
challenges in past from which, this industry has passed and resulted into a productive sector for
the economy (Economic Structure and Performance of the Australian Retail Industry, 2020).
The market structure of the industry/sector
The market structure is a concept which includes various characteristics of a market that
impacts the nature of the competition in a market and impacts the pricing decisions in the
market. The market structure is also related with the share of market by the top competitors in an
industry (Bös, 2014). The market structure of retail trade market of Australia is oligopolistic
where there are few major supermarkets and these companies plays a dominant role in market.
These dominant organisations in the retail trade industry of Australia includes Woolworths,
Coles and few others. These overall market conditions of the retail trade market impact the
overall growth of this market. The market structure of this market is likely to be change due to
demand of online market. The growth patterns of this market structure are wildly unique as the
non grocery retailers of this market are observed to acquire high growth after 2015 but the
grocery retailers are the market leaders of this industry for a long time period. The difference in
the overall growth between this market and the retail market of other companies is that offline
retail market still holds a dominant position in Australian market. The market structure of this
industry is impacted by various factors which includes technology which is pushing this market
towards online trading, globalisation; which has resulted in distributed dominance due to high
number of competitors and supply chain strategies of this industry.
2
The industry selected in this report is retail trade industry of Australia. This industry is the
most profitable and growing sector of this region which contributes 4.1 % of the gross domestic
product of Australia. The number of businesses working in such industry are 140000
approximately that helps in generating employment of around 10%. This industry not only
employ the people of Australia but also fulfil all the requirements of Australian population. The
retail industry is considered as most diverse industry of this region as it employs people around
the world and there are various types, scope and variety of businesses present in this market. The
overall demand for this industry is higher than the non retail services in Australia. While
analysing the overview of this industry, it is important to note that this industry had faced ample
challenges in past from which, this industry has passed and resulted into a productive sector for
the economy (Economic Structure and Performance of the Australian Retail Industry, 2020).
The market structure of the industry/sector
The market structure is a concept which includes various characteristics of a market that
impacts the nature of the competition in a market and impacts the pricing decisions in the
market. The market structure is also related with the share of market by the top competitors in an
industry (Bös, 2014). The market structure of retail trade market of Australia is oligopolistic
where there are few major supermarkets and these companies plays a dominant role in market.
These dominant organisations in the retail trade industry of Australia includes Woolworths,
Coles and few others. These overall market conditions of the retail trade market impact the
overall growth of this market. The market structure of this market is likely to be change due to
demand of online market. The growth patterns of this market structure are wildly unique as the
non grocery retailers of this market are observed to acquire high growth after 2015 but the
grocery retailers are the market leaders of this industry for a long time period. The difference in
the overall growth between this market and the retail market of other companies is that offline
retail market still holds a dominant position in Australian market. The market structure of this
industry is impacted by various factors which includes technology which is pushing this market
towards online trading, globalisation; which has resulted in distributed dominance due to high
number of competitors and supply chain strategies of this industry.
2
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