INFS 5023-Information Systems for Business

Running head: INFORMATION SYSTEM FOR BUSINESS
Information system for business
Name of the Student
Name of the University
Author’s Note

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Question Number: 6
Porter’s Value chain Analysis
Value chain analysis is done to determine the best possible way to provide the maximum
value of the products to the customers. It indentifies the business process and identifies the
necessary changes required to increase brand value (Soosay, Fearne and Dent 2012).
Organization Aldi Coles Woolworths
Inbound Logistics The company
produces its own
product under its own
brand name to sell
them in their
supermarket chain. It
saves them cost and
provide them a
prolong competitive
advantage
Coles sells the
products of a number
of popular brands in
their stores.
The company has its
own distribution
centers that enables
them to take
advantage to procure
huge quantity and
reduce price of the
products
Operations This reflects the
product lifecycle. Aldi
produces and serves
premium quality
products to their
customers that ensure
Reduced energy use
to control the
emission. It helps
them to address the
CSR of the company.
Woolworths have tie
up with the local
farmers and producers
that enables them to
provide fresh products
to their customers

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their continuous
visits. The company is
considered to be in the
growth stage as they
have made their
position in the market.
Outbound Logistics It communicates the
process of making the
products and services
available in the
market. Aldi uses
their own transport
chain to circulate their
products in the
market.
Uses smart routing
system in their
domestic and
international
transportation to both
address the
accessibility of the
products and low
energy consumption.
Uses quality
management system
to ensure product
quality and freshness
of products
Marketing and Sales The company has
chosen a cost saving
marketing and sales
strategy. They follow
the marketing strategy
that allows them to
provide low cost
products to their
Company is an
integrated agency
with deep route in
public relation,
marketing
communication and
brand development.
Woolworths have a
strong marketing team
and spend a
considerable amount
for high brand
awareness

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customers
Service The company
provides a quality
service in all their
stores in Australia.
The company ensures
the quality service via
online free delivery.
Customers are
promised for the
replace and refund if
company fails to
provide quality
product.
Refund policy for the
unsatisfied products
and service is what
makes the company
different from others.
Question Number: 3
Business Model
Five forces analyzing tool formulated by Porter is used to understand and analyze the
competition of the businesses under study. It is based on the organizations’ economics that
determines the competitive intensity. The tool helps to understand the profitability of the
organization in the given market (Yunna and Yisheng 2014).
Organizations Aldi Coles Woolworths
Competitive Rivalry It is high in case of
Aldi as every
supermarkets sells
almost the same
Coles faces primary
challenge from
Woolworths, Aldi,
Tesco, ASDA etc. It is
Competitive rivalry of
Woolworths is high in
the Australian
supermarket industry.

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products. However,
Aldi sells their own
products that helps
them to keep their
price low that in turn
gives them some
advantage in the
market. Aldi’s
primary rivals in
Australian market are
Woolworths, Coles,
Wall-Mart etc.
due to the nature of
the industry is quite
similar to each other.
However, coles sells a
wide range of
international products
that makes them
unique and reduces
some amount of
challenge in the
market
Major challenges
faced by the company
is from Aldi, Coles
and Wall-Mart
Threat of New
Entrants
Starting a supermarket
requires a huge
amount of investment,
which makes it hard
for setting up the
business. Moreover,
the Australian
supermarket industry
is already packed with
some big names that
prevents new entrants.
Threat of new entrants
in low. Australian
market supermarket
industry is tight for
new entrepreneur to
enter the industry
Threat of new entrants
is low as the
Australian
supermarket industry
is already compact
with some of the big
names.

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Hence, this threat is
low in case of Aldi
Bargaining Power of
the Suppliers
Aldi grows their own
products for selling
them in their stores.
Moreover, the
industry is flooding
with suppliers that
reduces the bargaining
power of the
suppliers.
Bargaining power of
the supplier is
moderate in case of
Coles as there are
other organizations
operating in the same
territory. However,
the number of
suppliers reduces the
threat
Woolworths does not
produce their won
product that is a
disadvantage
compared to Aldi.
However, there are a
number of suppliers
ready to supply their
product to these
industry that reduced
the power of the
supplier
Bargaining Power of
the Buyer
Bargaining power of
the buyer is
significantly high in
Australian
supermarket industry
as they have a
multiple choices.
Thus it creates a high
tension among the
Bargaining power of
Coles can be
considered as
moderate as they a
wide range of
international products
along with the local
ones. However, the
products are similar to
Power of the buyer is
considerably high as
there are a number of
companies operating
in the Australia in
close proximity

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competitors regarding
the price and the
profit margin
other organizations
which increases the
buyer’s bargaining
power
Threat of Substitute The products sold in
Aldi’s stores is
nothing unique.
Customers can get
every item in the other
store that are located
in close proximity. It
eventually increase
the threat of
substitutes.
Threat of substitutes
is high as there are a
number of
organization operating
in the in the area with
similar products.
Threat of substitute is
high due to the
availability of the
products in other
supermarket chains.
Question Number: 2
Organizations Aldi Coles Woolworth
Demographic profile The demographic
profile of Aldi
includes more female
customers compared
to the male customers.
However, in the case
The demographic
profile for Coles
include majority of
the female buyers
compared to the male
customers. The
In the case of
Woolsworth also,
majority of the buyers
are the female. Major
portion of the buyers
for them are the

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of Aldi, customers
from the upper age
groups of 55 to more
than 65 are the main
contributing shoppers.
Thus, people from
upper age groups are
more opting for Aldi.
In the case of Aldi,
customers from the
Caucasian ethnic
groups constitute the
major portion
(infoscout.co 2017).
maximum customers
for them are from the
age group of 25 to 44.
However, customers
from other and
diverse age groups are
not far behind and
thus, Coles is having
customers from
diverse customers
from all age groups.
Customers from Coles
are mainly from the
Caucasian ethinc
groups followed by
African-American and
Hispanic (infoscout.co
2017).
grocery buyers.
However, in terms of
the age group for
Woolworths, majority
of the buyers are from
the middle age
groups.
Market size In the Australian
market, Aldi is having
6 percent of total
market share.
Coles is having the
second most market
share only after
Woolworths. They are
having 36 percent of
In terms of the market
share, Woolworths is
having the market
leadership status with
having 43 percent of

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total market share. total market.
Competitor analysis Coles and
Woolworths are the
top two competitors
for Aldi. Other
competitors such as
IGA are also
competing in the
market. However,
majority of the
competitors for Aldi
are the third party
retailers. They retail
good manufactured by
other organizations.
However, Aldi sells
their own brands.
Woolworths is the key
competitor for Coles
with having the
market leadership
status. However,
smaller competitors
such as Aldi, and IGA
are also competing
with them.
Coles is the key
competitor for them
with having marginal
difference in the
market share from
them.
Profitability In the recent months,
profitability of Aldi
took a hit by reduction
in the profit margin to
€255 million.
However, they are
On the other hand,
profitability of Coles
increased by 1.2
percent. As of 2015,
they have made profit
worth of $1.39 billion
As of 2014, net profit
of Woolworths stands
at $2.45 billion with
an increase in 6.1
percent compared to
the last year (Powell

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having gross
profitability in their
business operation
(BBC News 2017).
(news.com.au, 2016). 2017).
The super market industry is the part of retail industry of consumer goods. This industry
is having huge potential in the future business scenario due to the reason that, consumer good
will not face recession as there are various necessity goods being included in the consumer
goods. Thus, with having positive potentiality, more investors are being attracted for investing in
the existing supermarket chain. Moreover, the recent trend of people preferring shopping from
the supermarket will also help in positive contribution on the market growth (de Wijk et al.
2017). In the current scenario, people are more attracted by convenience and large product
assortment, which are being offered by the supermarket.

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Reference
BBC News. 2017. Aldi posts record sales but profits drop. [online] Available at:
http://www.bbc.com/news/business-37470173 [Accessed 17 Oct. 2017].
de Wijk, R.A., Maaskant, A.M., Kremer, S., Holthuysen, N.T. and Stijnen, D.A., 2017.
Supermarket shopper movements versus sales and the effects of scent, light, and sound. Food
Quality and Preference.
infoscout.co. 2017. Aldi Shopper Insights and Demographics. [online] Available at:
https://infoscout.co/retailer/aldi [Accessed 17 Oct. 2017].
infoscout.co. 2017. Coles Shopper Insights and Demographics. [online] Available at:
https://infoscout.co/retailer/aldi [Accessed 17 Oct. 2017].
news.com.au — Australia’s #1 news site. (2016). Coles returns top profits for Wesfarmers.
[online] Available at: http://www.news.com.au/finance/business/breaking-news/coles-returns-
top-profits-for-wesfarmers/news-story/71fe90c907393b2d8ff17202f08b4eb1 [Accessed 17 Oct.
2017].
Powell, R. 2017. Where did Woolworths make its money this year?. [online] The Sydney
Morning Herald. Available at: http://www.smh.com.au/business/where-did-woolworths-make-
its-money-this-year-20140829-109yus.html [Accessed 17 Oct. 2017].
Soosay, C., Fearne, A. and Dent, B., 2012. Sustainable value chain analysis–a case study of
Oxford Landing from “vine to dine”. Supply Chain Management: An International
Journal, 17(1), pp.68-77.

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Yunna, W. and Yisheng, Y., 2014. The competition situation analysis of shale gas industry in
China: Applying Porter’s five forces and scenario model. Renewable and Sustainable Energy
Reviews, 40, pp.798-805.