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Competitive Strategy Assignment Help Australia

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Introduction

Australian supermarket and the retailing industry have a large participation in the economy of the country, where Woolworths and Coles are playing the role of duopolist. Both the companies have 80 percentage shares in the Australian economy. Apart from this, Wesfarmers is also playing a leading role in the country. This paper would shed the lights on the competitive strategy of Coles and Woolworths and also find the superiority of the firms in the competitive market. In this context, the business strategy and sustainability would also be described in this report. According to Merrilees and Miller (2015), Coles is at the top position compared to the other rival firms, and hence, the organisation has opportunity to explore its business more not only in the Australian market, but also in the market of the UK. 

Brief summary of the case

As per the case study, Coles and Woolworths are in the top 20 position also in the global retail industry. In the opinion of Merrilees and Miller (2015), both the firms have largest dominance in the domestic retailing and supermarket industry. Coles was at the supreme position than Woolworths a decade ago, nonetheless, after acquiring by Wesfarmers, the performance of Coles had started to decline. In addition, for expanding the business more, Coles had hired the UK retailing chain Asda in the year 2007. This performance of this new team and also by managing funding from Wesfarmers, Coles has started to rejuvenate and improve its services. The rivalry between the giant firms like Woolworths and Coles has sustained and it has become hostile over the years. The strategic difference of the firms is different and is dependent upon the pricing strategy. Therefore, Coles targets to minimise the price level of the goods for attracting more customers. In order to serve a large customer base their services, both Woolworths and Coles target to expand their businesses in the most populated area. Based on the participation of the retailing industry, it can be predicted that the growth rate of the revenue earnings of the Australian industry will be increased by 1.4% by the year 2022. 

Figure 1: Growth of revenue earnings by Australian retailing industry
Growth of revenue earnings by Australian retailing industry

 

Similarly, Metcash, the leading wholesale distribution of Australia has also be growing with the passage of time. It has specialisation in the selling of food, hardware business as well as also in the selling of liquor. It is also the strong opponent of Coles. Based on the financial report, it can be observed that the sales of Metcash have been increased sharply over the years. Consequently, for increasing the sales as well as revenue earnings, Woolworths targets to increase 58000 working hours in order to maximise the productivity of the organisation. As per the discussion, though there are a large number of retailing firms across the Australian market, however, the giant firms like Woolworths, Coles, Wesfarmers, Metcash have large control in the industry.
 
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