Competition Between Coles And Woolworths

In this report, Woolworths, one of our major competitors has been analyzed in order to understand how they have evolved the concept of

First, there are good numbers in the higher income categories in Australia. Second, there are an increasing high income earners and middle class which present a great market opportunity. Third, the Australia’s brand conscious society is well suited to the department store concept. Also, advanced computer-based technology and stable political environment contribute to a favourable business climate. The only drawback is economic uncertainty which hinders firms future strategic direction.

1. Introduction The intended purpose of this report is to outline the nature of the Australian retail market, specifically the retail food sector. This report will then discuss the role of market segmentation and how it has resulted in the emergence of new retail channels available to consumers. The emergence of ALDI as a new retail channel will be the focal point of the report along with a brief overview of other new-coming organizations such as Costco. Through the use of current journal articles, books, internet sites and government publications, this report will outline the benefits of the new retail channels available to consumers, especially in regards to saving on common expenses. This report will also discuss the possible room for

There is intense rivalry among grocery stores In Australia. As more stores open up regularly, rivalry determinants has taken in the form of price competition which is undoubtedly the primary form of competition in this industry where stores are undercutting each other with perks like promotions, points collecting system and the most commonly seen is by giving generous discounts to consumers with membership or reward cards.

In this article Michael Baker discusses the livelihood of small retailers in a market subjugated by the financially dominant oligopolies, Woolworths and Coles. While the small independent retailers in direct competition with Woolworths and Coles provide some competitive respite for consumers, as they encourage competitive pricing, albeit predatory pricing, it is clear that Woolworths and Coles control the supermarket industry in Australia, in the formation of a duopoly. It is evident that Woolworths and Coles engage in predatory pricing in an attempt to eliminate independent retailers from the market. This article discusses recent efforts made by the Australian government and the Australian Competition

If focusing on the retail industry it involved, such as Coles supermarket, the main competition comes from its countpart, Woolworth. Coles and Safeway are the two main retailors in Australia as analysed by Inside Retailing organisation in Australia. Australia’s retail industry has developed to become a leading industry in the national market as well as in the world market. As this article indicates, all entities in the retail industry confront pierce competition. Also cited in the article, a 1966 issue of trade magazine Inside the Food Industry observed that: Woolworths and Coles are now nearing 10% of total Australian retail sales. They are opening more stores than anyone else. Up until now, this figure can be much bigger than 10 percent; and the competition between retailers is increasingly intense.

Cole is an Australian supermarket with large influence and market share in the country. In addition, the company contributes significantly to the nation’s economy. In essence, the company has acquired more than 30% of the market share of the supermarket industry in this nation. Specifically, the company’sproduct line consists of daily products, grocery, meat, deli, fresh produce, bake house, cigarettes, liquor, apparel, general merchandize and over head products. Notably Cole has a culture of low price as its marketing strategy of attracting and retaining customers.

This report is about the UK supermarket industry, and analysing the condition of the current market. It will focus on its market structure, barriers to entry and contestable market to analyse if the supermarket industry is an oligopoly market and if it is a contestable market or not.

Potential entry of new competitors is rendered low for the grocery retailing industry. Puregold, SM Hypermarkets, Rustans, and Robinsons Supermarkets are amongst the top key players in the game. The entry of new competitors could be very low because of the huge capitalization funds that this industry requires. In addition, the industry has been long time dominated by the giant players that had already well established and positioned their brands throughout the country and that they had already spread out with branches in Metro Manila and other regions.

The following report will investigate the Australian retail/grocery supermarket Woolworths and its parent company Woolworths Limited. This report will explore the success Woolworths and its contribution to the Australian economy.

Woolworths is the major supermarket grocery store chain in Australia, owned by Woolworths Limited. Woolworths is an incorporated public company, listed on the Australian stock exchange. This company has incomplete permissible responsibility through its shareholders and lies in the tertiary industry and retail sectors. Through their authoritative organization strategies and processes Woolworths has been able to make available to its 1.3 million customers a level of service, expenditure and manufacturing available across their franchise stores located across Australia. Woolworths' function as one of the largest public companies is obvious through its nature of management. This report will explain the nature and responsibilities of management in light of Woolworths.

The Australian Supermarket Industry is the very hot topic that’s why very interesting topic now days. The Australian supermarket and grocery stores have a very severe competition in Australia mainly because of organizations competing in this mature industry are going towards cost reduction initiatives with competing advantage rather than product differentiation strategies, In other words business in this industry increase market share by charging lower prices while making reasonably fair profit. The growing popularity of ALDI – German based company of introducing its own label goods (products manufactured and sold under the retailers own brand) with low cost has forced the two giants –Woolworths and Coles to cut price

The UK supermarket industry resembles an oligopolistic industry, with several characteristics. Oligopolistic markets tend to be characterised by high concentration ratios, barriers to entry and…Since the turn of the century, the industry has been scrutinised by both the Office of Fair Trading and has been referred to the Competition Commission on two occasions. (Seely, 2012)

“We are on the cusp of exciting change in retail as we enter the new era where the customer is in charge. But far from being daunted by change, I firmly believe it brings opportunity for our business, our employees, our suppliers and of course, our customers. You just have to look for that opportunity. Woolworths is leading this shopping revolution in Australia and there’s a lot more opportunity still to be realised.”

Similarly, both companies had a product differentiation strategy, with the aim of being distinctly set apart from their competitors by the viewing market. However, different elements of this strategy were focused on by the firms. For instance,