Strategic Planning for Australian Supermarket Industry

Strategic Planning
The Australian Supermarket Industry

Strategic Planning 2
Contents
Introduction......................................................................................................................................3
Background of the case study..........................................................................................................3
Macro environmental factors...........................................................................................................3
Porter’s five forces competitive factors...........................................................................................5
Industry lifecycle model and influence of industry competitiveness..............................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Strategic Planning 3
Introduction
There are number of strategies developed within the business which are made on the certain
beliefs about the future. Future cannot be predicted by anyone and it demonstrates that the
company need to focus on various strategies to face potential challenges. Strategic planning
starts from the theory of planning and hence, it is important to get better knowledge about the
specific terms for planning which are featured for all kinds of plans (Bryson, 2018). There are a
plenty of management functions entailing the capability of an organization to look in the
potential in order to make ready oneself for an action helping the attainment of the aims set
forward is planning. The main purpose of this assignment is to highlight the strategic planning by
taking consideration of case study for which Australian Supermarket case study will be
considered. The macro environmental forces help company to take strategic actions for the
purpose of the development of the company. Competitive strategy will be considered under this
assignment by taking consideration of the Australian supermarket case study on which porter’s
five forces will be applied.
Background of the case study
The Australian supermarket industry can be considered as the business retailing groceries and
food lines, is categorized as a mature industry. There are number of organizations in this industry
that employ cost-reduction initiatives. There are major two names highlighted in the supermarket
industry that is Woolworths and Coles. It has been found from the case study that the Australian
supermarket industry attained average annual growth of 3.7% between 2007 and 2012. The
description has been given in this assignment by taking consideration of two well known
supermarkets i.e. Woolworths and Coles. There is a price war between them which become the

Strategic Planning 4
loss leaders. Loss leaders are developed to amplify store foot traffic. Macro environmental
influences have been referred under the case study that depicts amendments in age and
population demographics affect not only fix decisions for the institution of new supermarkets,
but also influence the extend of products delivered between supermarkets. Moreover,
inhabitants’ growth will focus on constructions of new supermarkets so that the services of
groceries can be expanded in Australia (Gantt, Butler, Orr & Murray, 2014).
Macro environmental factors
Political
It has been found that the political conditions influence the supermarket industry in Australia and
also the performance of the organizations that deals under this industry. For instance, the
competition policy has been introduced by the Federal government in Australia which protects
major independent players like Woolworths and Coles in reducing the competition. The
developing market supremacy of these well known supermarkets has outcome into small retailers
rebellious to give their best to the industry.
Economical
The avoidance of the economic market condition of the Australia can be the major cause for the
supermarket to develop revenues. It has been found that there has been refuse in the activity of
the economic in the markets of Australia s well as New Zealand. Along with that there are
another factors that impact the performance of the supermarket industry that is fluctuations in the
current exchange rates which be the cause of weakening of Australia dollar that pit negative
effect on the operations of the supermarket industry (Wu, et. al., 2015).