Report on Competitive Strategy and Supermarket Structure in Australia

This report provides an in-depth analysis of competitive strategies within the Australian supermarket sector, focusing on the market dynamics, acquisitions, and business structures of major players like Woolworths and Coles. The executive summary highlights the significance of competitive strategy in the business environment, emphasizing the need for innovation and differentiation to gain a competitive advantage. The report explores the primary, secondary, and tertiary sectors of the Australian economy, with a specific focus on the supermarket industry. It delves into the market shares of key supermarkets such as Woolworths, Coles, ALDI, and Metcash. The analysis further examines the acquisition strategies and organizational structures of Woolworths and Coles, detailing their expansion through acquisitions, online presence, and customer-centric approaches. The report also highlights the competitive strategies employed by both companies to maintain their market positions, emphasizing their commitment to innovation, customer service, and societal contributions. The report concludes by underscoring the intense competition between Woolworths and Coles and their continuous efforts to enhance their products, services, and innovative approaches to stay ahead in the market.

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Competitive Strategy
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Competitive Strategy
Executive Summary
The below presented report has been developed for describing the significance and role
of competitive strategy within the business organization. The report is focusing on the
various types of competitive strategies that can be adopted by the business corporation
for tackling and dealing with various aspects of business environment. The below
presented analysis has been executed on the Australian Super-markets. The report further
comprise of various strategies that can be implemented by the business firm for
development and advancement in the business operations and functionalities. As per the
given scenario the report is focused on the Acquisitions and Structure of the Super-
market sector of Australian regions.

Competitive Strategy
Contents
Introduction..........................................................................................................................4
Australian supermarkets......................................................................................................4
Acquisition and structure.....................................................................................................5
Conclusion...........................................................................................................................9
References..........................................................................................................................10

Competitive Strategy
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. There is always a definition of the fact that
why a customer should choose a product over a competitor and answer to it is that it has
some qualities of its own. So, competitive advantage is that such quality which makes a
company’s product different and attracts more people towards it. This report consists of
all the strategies and plans which are made to overcome the competition present in super-
market of Australia. There are several functionaries which every company has to
implement in order to reach the edge in its market performance. A justification to that has
also been given in this research (Chen, 2017). Study upon various sectors of a market has
also been specified in this report so as to reach a conclusion about diversification of
sections of the Australian economy. Coles and Woolworth are the two supermarket giants
in Australian market which add the huge amount to the economy. Hence, a justification
and study of their business structure and operations have also been highlighted in the
section of this report.
Australian supermarkets
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. Last tertiary sector is known for services
such as transportation, hospitality etc. Hence, these are e sectors in which an economy of
a country is divided. 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

Competitive Strategy
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%. Hence, this
number clearly shows the market positioning of these giants in the Australian economy.
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. 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. From launching the store
in 1924 Woolworth had a very long journey to encounter.
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. It completely works on the policy
of understanding the behavior of the customers and according to that, it makes the
strategy for its further operations.
The business structure of Woolworths completely relies on serving the customers in new
ways by innovating. It has its several retail stores and to cope up with the market demand
it also has its online store from where the people can shop from their home. The company
always has a customer first policy (Tao and Lo, 2018). Also, they incline their business
activities to serve the society by giving it back in several ways such as corporate

Competitive Strategy
responsibilities etc. It satisfies its customers with several frameworks which are most
inclined to serve the customers with freshly picked vegetables from the farms.
Woolworth has 995 stores across Australia serving with the best range of products to its
customers which makes it customers first choice. There are distribution channels which
are used by the company to reach to its customers and also there are support offices
which help the company to reach heights in its sector (Hubbard, Rice and Galvin, 2014).
Likewise, the company has acquired the majority of the share in the market by its specific
and very much diverse services to make it convenient for its customers.
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. 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.
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). Launching its first store in 1914 with an
effort to serve with quality, service and value to the customers. It was further converted
into self serving store which has standards in the market industry for all of the rivalries. It
further to develop and empower women has hired all women staff on board for the
services. Meanwhile while its operations it has faced many difficulties and inclined

Competitive Strategy
problems which from which it developed with confidence (Laszlo and Cescau, 2017).
There were several opportunities which Coles has grabbed in terms of becoming the best
and on the top of supermarkets. Rise of technology was also very drastically changes the
operations in Coles which further made it to get an online presence. In further years under
the acquisition of Wesfarmers Coles made and enriched t develop new staff and people
for its operations so as to develop for a long term as a company in Australia. It has
completed 100 years of services in the market which is a pride for the company and it
continues to take its legacy further (Dana, 2018).
The business structure of Coles is very much inclined to serve the clients with its perfect
services. It has several retail stores through which it operates and also it has a presence
online by which it reaches out to more number of its customers in a single go. It also has
a policy of giving back to the society by various techniques which add up to its CSR
activities. There are several channels of distribution which it uses to proceed with its
plans and strategy of being the best in the market. Many new techniques of the company
have set trends in a market (Gotzens, Heinrichs, Hake and Allelein, 2018). It has the
simple structure of the business to operate from several stores and also online which has
set a separate distribution channel which is being managed through headquarter in
Melbourne. There are 750 stores of Coles all across Australia so the business of the
company is very huge and on a large scale. It also provides liquor facilities to its
customers by providing them with best services (Grant, 2016). It is solely own by the
parent company Wesfarmers which is also another giant chain in Australia.
Structure of the association is vast and it is spread everywhere throughout Australia.
Subsequently, the activities are controlled by one particular headquarter to guarantee that
the administrations continue as before in every last store. It specifically grabs the best
items for its clients from the ranchers and through different stores serves its clients.
Essentially it is working as a retail location. It additionally has its essence online which
makes it advantageous for its clients to have items at their doorsteps and in addition sees
Woolworth as a solid creative grocery store which meets the patterns of the market (Ow,
2017). Advance the organization is performing outstandingly well as it is known for the
item and administrations it gives which makes it most picked the store in Australia.

Competitive Strategy
Additionally, the upper hand of organization which is being imaginative and diverse
which settles on it client's first decision.
Both the organizations are playing their part in the market of Australia and it is very well
known for the share of these two giants (Pflaum et al., 2018). Hence, they also contribute
to the economy of the country on a very huge scale which further is turned out to be
developed. Both the companies are rivalries off each other which aim to get better in each
and every aspect. They are having most close competition and both are having their own
competitive strategy to deal with it. The aim of both the organization is to serve its
customers with high quality of products and services simultaneously by providing best
innovative services. Both are operating for a very long time in the market of Australia
and have set a huge channel of the retail store by which it operates (Yao et al., 2017).
They are very close when it comes to the services and products but are wisely performing
their roles. But they are maintaining the pace of the competition and making strategies for
the same in order to have a market control. The upper hand is an organization's capacity
to perform such that nobody else can. Henceforth, it is finished up as being not the same
as the group or choosing a procedure which is absolutely new and imaginative. There are
n number of organizations in the market which are focused on its substitutes and rivals. In
this way, keeping in mind the end goal to emerge of the group there must be legitimate
arrangement and technique for being unique and appealing (Nakamura, Øverby, Uchida,
Murayama and Matsui, 2018). There is dependably a definition to the way that why client
ought to pick an item finished a contender and reply to it is that it has its very own few
characteristics. In this way, the upper hand is that such quality which makes an
organization's item unique and draws in more individuals towards it (Johnson, 2016).
It is very easy for every organization to have a business to serve customers but to
maintain the long-term legacy is different sort of section. In this section, the companies
have to make sure it has best strategies and operations for the customers as well as the
employees who are working in it so that they remain associated with it for a long period
of time. There are several strategies which show that both the rivalries aim to have the
market for a long period of time and that makes the company a very strong entity to have
an edge over the market (Wang, Liu, Zhu, Fu and Sun, 2017). The share of the market
both of them has acquired is very huge and it has made it by having several years of

Competitive Strategy
operations and continuous innovation. To attract more and more customers it is important
to have several new additions and several new products which makes them more
connected to the business. This has been taken into account by both the giants who have
made them achieve targets of their own.
Conclusion
It has been concluded by the above report that there has to be several ideas and plan for
the competition compatibility for every firm in a particular market. Also, the strategy for
acquisition and structure of many supermarkets has been given a highlight in the above
report. Proceeding with several competitive techniques and that a company has to follow
in order to reach the top in its operations has been a result of this research. There is also a
justification for the operations of the Australian market and the techniques which are
being followed in it so as to guide a company to have an edge over the market. Also,
several supermarkets have been analyzed and justified in the above study for a better
understanding of the competitive strategies of the Australian market. The competition
analysis of Coles and Woolworth is a result of this study with a proper justification for
the process and structure of an organization.

Competitive Strategy
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Competitive Strategy
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