Market Expansion and Growth - Coles

Running head: MARKET EXPANSION AND GROWTYH
MARKET EXPANSION AND GROWTYH
Name of the student
Name of the university
Author note

1MARKET EXPANSION AND GROWTYH
Introduction to the organization and needs for expansion
Coles is one of the supermarket giants in Australia and holds a significant amount of market share
along with Woolworths in the Australian markets. The changing market dynamics and the opportunities
through globalization have enabled organizations in exploiting the opportunities of making market
expansion. It has been observed that the organization is planning to expand their operations in the Asia-
pacific economies. In this connection, the organization identified two most prospective nations, India and
China, which would provide the same with a sustenance and growth prospects. Therefore, the discussion
would take the initiative of discussing the different favouring elements and challenges in the economies and
finally select the most obvious economy for expansion. On the other hand, the discussion would also
recognize the market expansion strategy that might be considered by the organization while expanding to the
markets.
Market feasibility of India and China and selection of the best alternative
The expansion of an organization in he different markets enable the same in achieving a competitive
vantage point through increased sales volume. According to Hitt and Xu (2016), the market expansions
enable an organization in increasing the chances of developing and establishing new customer segments in
the growing economies with greater scope of sales. In this connection, the saturation of the market condition
in Australia and the proactive operations of Woolworths have forced Coles to improve their sustenance
measures through increasing the sales volume while making expansion in the different emerging economies.
The expansion of the organization in the Indian markets would ensure the organization in achieving stability
due to the factors of higher political stability, lower government intervention in business operations and
improving disposable income of most of the communities (Saeed, ABelghitar and Yousaf 2016). It has
been observed that there is a lower rate of political conflict in India, which would enable the organization in
empowering the business activities.

2MARKET EXPANSION AND GROWTYH
Moreover, it has been observed that the lower amount of government intervention in the different
operations of the business and reduced rate of taxations would permit the business in improving the
potentiality of the same in achieving a competitive vantage point while operating in the different markets.
On the other hand, it has been observed that the growing instability in the Chinese political situation might
restrict the potentiality of the organization in making a steady growth (Gaur, A. Ma and Ding 2018). The
unclear legislative frameworks and corruption among the private and public sectors might hinder the growth
of the organization in the Chinese economy. The increased taxation that is levied by the Chinese government
on the business practices and the increased excise duties might restrict the potentiality of the organization in
improving the trade links in China.
However, it has been observed that he central Chinese population have greater disposable income and
increased employability in the different job sectors which would significantly support the organization in
making a dynamic market growth in China (Lu et al. 2018). In terms of economic position, India is still in its
developing stage and even through most of the communities in India is holding handsome amount of
disposable income, the price sensitivity among the customers might restrict the rate of sales. Schleifer and
Sun (2018) stated that the economic position of an economy is an important consideration that is made by the
organizations with the purpose of devising recognition on the profitability. In his connection, the
differentiation between the Chinese and Indian economic position would permit the organization in
improving the expansion decision. However, the lower cost offerings of the organization and the promotional
offers hold an elevated opportunity for the growth of the concerned businesss while aspiring towards the
common target of the venture (Rottig 2016). The restrained Chinese society and their greater inclination
towards the propositions that are made by the companies of their nation might restrict the potentiality of the
concerned venture in achieving over the loyalty of the target customers in China. However, in this
connection, the Indian customers are fast adopters which would permit the organization in improving their
base of target customers more effectively in India.