Detailed PESTLE Analysis Report: Coles Supermarket (2019)

This report presents a PESTLE analysis of Coles Supermarket, a major player in the Australian market. It examines the political factors, including government regulations and competition concerns, and economic factors like consumer spending and price wars. The analysis also explores social factors, such as health trends and online grocery adoption, and technological advancements like contactless payments. Legal factors, including food standards, and environmental factors, like sustainability initiatives and waste reduction, are also discussed. The report references Coles' CSR, delivery, environment, and supplier information, along with Securities and Exchange Commission data to provide a comprehensive overview of the external forces shaping Coles' business strategy in 2019.

Running head: Coles
Pestle analysis of Coles

Coles
Pestle analysis of Cole’s supermarket
 Political factor
Cole’s supermarket is the biggest organization in the Australian market and in the present
scenario; the company is making the market duopolistic in nature. Presently, federal
government has considered the steps to maintain this duopoly and Australian competition and
also consumer commission has focus on considering various steps to minimize the entry
barrier and to reduce the competition so that new firms can introduce their operations in the
market (Securities and Exchange Commission, 2019). This can assist in boosting the
bargaining power of the consumers as it assist the consumers to compare the actual price
before taking any decisions in relation to purchase.
 Economic factor
In the Australian market, the economic downturn has become very sensitive and also
customers are spending less at the time of shopping. It is the constant endeavour to be one of
the customer friendly outlets, so the company has focused on launching a different range of
products and is trying to minimize the price with low margin. Through the combination of
different products that exist at Coles the consumers can reduce their cost of shopping and can
purchase products at low cost (Coles, 2019a). So, the strategy of Coles is considered by
different competitors and now price war has started among them.
 Social factor
By analysing the precautions taken by the customers, the company is focusing on considering
the problem related to food insecurity since 2011. Coles assisted to improve cancer care for
the children and youngsters. Cole’s supermarket is one of the companies that received the
award for “Fair trade retail chain of the year”. Now day’s people are more emphasizing on
their health and obesity, so they are using healthy and organic products. The online grocery
has considered precedent with 1.2% and also showed increase of 0.9% in the last 2 years. So,
there is an indication of socio- economic differences in reference to nutritional consumptions
among the society of Australia (Coles, 2019c). So, the company considers the perception of
the customers so that demand can be enhanced of the products in the market.
 Technological factor
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Coles
It is noticed that the customers has started using internet for purchasing products, so due to
this the company focused towards contact less payment facilities that helps to purchase the
products easily. Now, the company has also provided different schemes related with free
delivery at home at special price (Coles, 2019b). So, due to the latest technology used by the
company, now customers are more satisfied and happy in relation to their shopping
experience.
 Legal factor
In the Australian market, the food standards codes are adhered which simply means that
packaged food should have proper labelling of information which consist of protein, energy
and also saturated fats. Due to this policy, the supermarket in the Australian market has to
show all the dietary information to prevent obesity (Coles, 2019d). So, it can be said that
these are the factors that affect the overall growth of the company and also these are the basic
guidelines that are necessary to be considered at the time of operating different functions.
 Environmental factor
By considering the environment, the company is sourcing the products that ensure that future
sustainability of the marine ecosystems is secured. To secure the Australian environment, the
company has considered ethical sourcing that assist in reducing the potential in relation to
labour and human rights issues in the supply chains. Coles has set the commitment to
minimize packaging and food waste and to encourage the method of recycling in relation to
the overall operations of the business and also for the customers. From 2011, the company
has diverted more than 542 million plastics from the landfill across Australia (Coles, 2019a).
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Coles
References
Coles, 2019a. CSR. [Online]. Available at https://www.coles.com.au/corporate-
responsibility/sustainability/ethical-sourcing [Accessed on 12 September 2019].
Coles, 2019b.Delivery. [Online]. Available at https://shop.coles.com.au/a/a-national/home
[Accessed on 12 September 2019].
Coles, 2019c.Enviornment. [Online]. Available at https://www.coles.com.au/corporate-
responsibility/sustainability/environment [Accessed on 12 September 2019].
Coles, 2019d.Suppliers. [Online]. Available at:
https://www.supplierportal.coles.com.au/csp/wps/portal/web/Quality/
AllColesBrandSuppliers/AllColesBrandFoodSuppliers [Accessed on 12 September 2019].
Securities and exchange commission, 2019.Politics. [Online]. Available at:
https://www.sec.gov/Archives/edgar/data/825777/000119312507014825/d20f.htm [Accessed
on 12 September 2019].
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