This report provides a strategic analysis of Coles and Woolworths, including external and internal analysis, industry analysis, and SWOT analysis. The report discusses the general environmental factors that affect both the companies. Further, Industry analysis is undertaken to analyze the competitive forces existing within the industry and their potential impact upon the profitability of both the companies. Further internal analysis is made to analyze the internal capabilities by using of SWOT analysis which gives an overview of the strengths, weakness, opportunity and threats that the companies have in order to stand in the market.