Competitive Strategy Analysis: Australian Supermarkets Case Study

This report provides an analysis of the competitive strategy within the Australian supermarket industry, focusing on the key players Coles, Woolworths, and the emerging competitor Aldi. The case study examines the intense competition, market share dynamics, and strategic responses of the companies involved. The report delves into the challenges faced by Coles and Woolworths, including the impact of Aldi's low-cost business model and the resulting price wars. It explores the use of business-level strategies, particularly differentiated and focus strategies, to enhance performance and gain a competitive advantage. The report recommends that companies invest in different segments to increase market capitalization. The analysis is supported by academic references, providing a comprehensive overview of the competitive landscape and strategic options available to the supermarkets. This report is intended to help students understand the practical application of strategic management principles in a real-world business context.

COMPETITIVE STRATEGY
Australian Supermarkets: Who will when and
when

INTRODUCTION
 The objective of the paper is explaining the
reader about the information about the case
study Australian Supermarkets: Who will
when and when.
 The case study explains the details about the
Australian supermarket environment and
competition present in it. The paper explain
the issues and implementation of business
strategies as well (Hardaker 2018).

SUMMARY OF CASE
 The case study explains the degree of
competition faced by supermarket
companies present the Australian retail
segment. The industry is owned by Coles and
Woolworths with having major market share
of 80% together.
 Aldi is however becoming new market player
in the industry by attracting more and more
customers through discounted low cost
business structure(Cândido, and Santos
2015).

CONT.
 The companies present in the industry are
behind each other’s throat. With every
significant change in one organization leads
to change in other organizations as well.
 Coles and Woolworths have started facing a
hard time while reducing to the pricing to
compete with Aldi (Cavagnino 2019).

ANALYSIS OF STRATEGIC ISSUE
 It should be noted that both the company
Coles and Woolworths are in tough
competition with each and aims to increase
their market share by introducing new
features and services in the business.
 Another issue faced by the companies is low
profitability as the problem of competition is
making the companies to sell products at low
rates in the market (Wheelen, et. al., 2017).

CONT.
 The companies have similar products and
business functions that confuse the
customers.
 Whereas low pricing strategy is making the
customer doubt on the products doubt on the
product quality of the organization.
 Resulting in which, the brand image of the
organization is also reducing (Raghunath,
and Rose 2016).

BUSINESS STRATEGY
 Business strategy helps the business to
strengthen their performance and become
competitive as well.
 The objective of business strategy is to
initiate effectiveness for the organization by
introducing differential strategies in the
environment.
 There are three types of business strategy
that are corporate strategy, functional level
strategy and business level strategy (Prajogo
2016).

USE OF BUSINESS STRATEGY ON
COMPANY
 In order to rise above competition,
Woolworths should make use of differentiated
business level strategy in the external
environment.
 On the basis of this strategy, the organization
should focus on marketing and production
facilities of the company.
 They should reevaluate customer segment
and then implement marketing campaign
(David, and David 2019).

CONT.
 The company should decentralize as well as
centralize the decision making process. The
company should also make use of focus
business strategy.
 Through this strategy, the company should
focus on the cost differentiation strategy for
the business (Thamir, and Poulis 2015).

RECOMMENDATION
 It is recommended to the organization that
they should invest in different segments so
as to increase the market capitalization and
do not depend on single segment for sales
and profitability.
 This will promote the brand image and help
the organization to earn profitability in
supermarket segment as well.

CONCLUSION
 Thus, it should be concluded that the
presentation evaluated details about the
supermarket industry and the problems faced
by the organization.
 Business level strategy for the company is
elaborated so as to increase its profitability.

REFERENCES
 Beaton-Wells, C. and Paul-Taylor, J., 2017. Problematising supermarket–supplier
relations: dual perspectives of competition and fairness. Griffith Law
Review, 26(1), pp.28-64.
 Cândido, C.J. and Santos, S.P., 2015. Strategy implementation: What is the
failure rate?. Journal of Management & Organization, 21(2), pp.237-262.
 Cavagnino, A., 2019. Deficiencies in Australia's Current Merger Regime: The Call
to Combat Creeping Acquisitions. Int'l Trade & Bus. L. Rev., 22, p.119.
 David, F.R. and David, F.R., 2019. Strategic management: A competitive
advantage approach, concepts and cases. Pearson.
 Hardaker, S., 2018. Retail format competition: The case of grocery discount
stores and why they haven’t conquered the Chinese market (yet). Moravian
Geographical Reports, 26(3), pp.220-227.
 Hitt, M.A., Jackson, S.E., Carmona, S., Bierman, L., Shalley, C.E. and Wright, M.,
2017. The Oxford handbook of strategy implementation. Oxford University
Press.
 McDowell, W.C., Harris, M.L. and Geho, P.R., 2016. Longevity in small business:
The effect of maturity on strategic focus and business performance. Journal of
Business Research, 69(5), pp.1904-1908.
 Namada, J.M., 2018. Organizational learning and competitive advantage.
In Handbook of Research on Knowledge Management for Contemporary
Business Environments (pp. 86-104). IGI Global.

CONT.
 Prajogo, D.I., 2016. The strategic fit between innovation strategies and
business environment in delivering business performance. International
Journal of Production Economics, 171, pp.241-249.
 Raghunath, S. and Rose, E.L. eds., 2016. International Business Strategy:
Perspectives on Implementation in Emerging Markets. Springer.
 Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P. and Saaeidi, S.A., 2015. How
does corporate social responsibility contribute to firm financial
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 Salavou, H.E., 2015. Competitive strategies and their shift to the
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 Thamir, A. and Poulis, E., 2015. Business intelligence capabilities and
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 Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E.,
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