Executive Summary : The Australian Supermarket Industry

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Executive Summary 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…show more content…
Furthermore reduced in consumer deposable income has also effect on supermarket spending. Responding to this change in supermarket spending, Woolworths have expanded its product range of private label goods with comparable quality with reduce price and targeted its sales doubled by 2011 in private label groceries Demographic: Change in demographic has also cause changes in supermarket spending. Change in age and population demographic not only influence the location decision but also influence the variety of products offered between supermarkets. Moreover increase in population growth has also raise the number of supermarkets in Australia. Social: These factors represent the culture of the society in which the organization operates with in. Change in social values towards healthy livings has adjusted purchasing behaviour and now people are more focusing towards organic produce. For this reason organic domestic retail sales have increased by more than 50% in the last two years from 623 million to 947 million (Keith, 2012). Availability and distribution of this healthy food have increase rapidly. Woolworths, Coles and Aldi all over Australia stock a range of private label goods. Technological: These refer to the degree of new inventions; development, and mobile technology, changes in internet, e-commerce and government spending on research, Such as both Coles and Aldi have released mobile application
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