Competitive Strategy Analysis: Australian Supermarket Chains

This report provides an overview of the competitive strategies employed by Australian supermarkets. It begins by defining competitive advantage and its importance in the market. The report then focuses on the Australian supermarket landscape, discussing market share data for major players like Woolworths, Coles, ALDI, and Metcash. It delves into the acquisitions and organizational structures of these supermarkets, highlighting Woolworths and Coles as key examples. The report further examines the structures of these organizations, emphasizing their retail operations and online presence. Additionally, the report references the competitive advantages of innovation and customer focus and acknowledges the significance of long-term sustainability and growth strategies. The report concludes with a list of relevant references.

Competitive
Strategy
Australian Super Markets

Introduction
• Competitive advantage is a company’s ability to perform
in such a way that no one else can.
• Hence, it is concluded as being different from the crowd or
opting for a strategy which is totally new and innovative
(Berlanga, Husby and Anderson, 2018).
• There is n number of companies in the market which are
competitive with its substitutes and competitors.
• So, in order to stand out of the crowd, there has to be
proper plan and strategy for being different and attractive.

Australian Super Markets
Share

Australian Super Markets
Australia is a vast country where there are many sections of
business happening at a particular point in time.
In every country, there are three major sectors in which
business takes place primarily, secondary and tertiary
market (Costa, Costa, Angelo and Moraes, 2018).
Primary sector includes extraction of raw material and
natural resources the goods produced from that market such
as grains, vegetables etc.
The secondary market plays a role in turning the raw
material into products.

Continued…
Super-markets come in the secondary market as
they provide the resources available so that it
reaches out to potential customers.
There are many supermarket chains in Australia out
of which Woolworths, Coles, ALDI and Metcash are
the topmost.
Woolworths has a market share of 37.2% followed
by Coles 30.3% further by ALDI with 9.2% and at
last there come to Metcash with a share of 7.4%.

Australian Super Markets

Acquisition and Structure
The Australian economy is performing very well in terms
of growth and development (Liu, 2018).
As we know it is the market rule to have some or the
other competitors who are there in the market.
Every organization needs to have the competitive
advantage so as to stand out from the crowd.
Hence, there are chances of a lot of mergers and
acquisitions in the market.

Acquisitions
An acquisition is a solitary term which means that a big
company acquires a small company to demolish the
competition as well as to finance the small enterprise at a point
in time.
Simultaneously, a company acquires the huge number of share
in the market eventually when it has the huge number of
subsidiaries. Woolworth and Coles both are the giant
supermarkets in Australia and they have a specified share of
the market.
Hence, these companies have many subdivisions working under
them which are consolidated as a whole to make these two big
giant companies.

Continued…
Meanwhile the whole proceeding with its functions it had taken over
many firms it acquired Dick Smith in 1981 and entered into the
electronic market.
Further, in 1985 it acquired Safeway's 126 stores in Australia. In the
year 2004, it has stepped in with the Australian hospitality and leisure
by acquiring it.
In New Zealand, it acquired Foodland which further was a great deal
for the company.
The company claims to work with farmers to serve fresh fruits,
vegetables, and meat to its customers (Murray, 2018).
It is also known as Australia's most innovative supermarket.

Structure
Structure of the organization is very large and it is spread all over
Australia.
Hence, the operations are controlled by one specific headquarter so
as to ensure that the services remain the same in each and every
store (West, Ford and Ibrahim, 2015).
It directly picks up the best products for its customers from the
farmers and through various stores serves its customers.
Basically, it is operating as a retail store. It also has its presence
online which makes it convenient for its customers to have products
at their doorsteps as well as regards Woolworth as a strong
innovative supermarket which meets the trends of the market.
Further, the company is performing exceptionally well as it is known
for the product and services it gives which makes it most chosen
store in Australia.

Continued….
Also the competitive advantage of a company which
is being innovative and different which makes it
customer’s first choice (Cuneo, Milberg, Benavente
and Fenech, 2015).
A company is making its best to operate in the
market with several strategies and upcoming
strategies which will add up to its sustainable
growth and development.

Continued…
Coles is another supermarket giant in Australian
market which is owned by the parent company
Wesfarmers.
It is known for its maximum share in market with
huge number of customers.
It provides best services to its customers by having
quality of service maintained from a long period of
time since it was established.
It claims to maintain long-lasting relationships and
sustainable growth in the market of Australia
simultaneously by giving back to the society
(VanWyk, 2017).