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Australian Retail Industry

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IBISWorld analysis indicates that the intensity of competitiveness in Australia retail industry is high and pattern is expanding in the business (IBISWorld, n.d.). The four largest operators accounting for just under 80% of industry revenue. The Supermarkets and Grocery Stores industry is one of the most concentrated industries in Australia. Obtaining movement embraced by Woolworths and Coles has added to expanding industry focus since the mid-1970s. These two players alone record for over 60% of the business. In this past five years, strong growth of ALDI has increased industry intensity. ALDI has a reputation as a low-cost player that stocks a limited range of popular grocery items. In addition, there is a variety of independent supermarkets …show more content…

Retailers have to slice the prices so as to maintain consumer’s custom and loyalty. For example, Coles and Woolworths gained profits by selling more affordable products in order to stay competitive in the market (Merrett, 2016). The products two companies sold are identical and duopoly system is cutting down the price to keep up their market share. Woolworths' home brand deals is another great case. After lessened prices, the organization get income of about $1.4 billion yearly (Mortimer, 2016). The price war between Coles and Woolworths give the clear picture of the competitive importance of price (IBISWolrd, n.d.). As a result, identical products from major supermarkets lead to the increased of competitive market. According to the recent global financial crisis, customers generally consider price as a main factor when they have to purchase similar items from various sellers, due to higher levels of price sensitivity. The similarity of products means that customers that are not so loyal to the retailers can purchase from other stores if the price is better. Thus, customers will get benefit from the price war in short-run (Round,

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These firms are continuously competing with Cracker Barrel because they offer the similar types of food and services; although they have different strategies and distinctiveness. Not only are some of the food options similar, but their prices are close in range. There are so many factors that make the competition in the restaurant extremely high. Some of these factors include: prices, quality, value, reputation, location, and accessibility. Chart below compares the competitors’ gross profit margins.

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1. Rivalry among existing competitors The retail industry is extremely competitive. Here in Canada we enjoy large well established retailers such as Hudson Bay, Costco, and Canadian Tire. According to Statistics Canada “Chain stores, defined as operating four or more locations within the same industry group and under the same legal ownership, have been incrementally increasing market share for more than 10 years” .

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However the UK’s supermarket sector has become more competitive, due to the price drop in various supermarkets, which meant customers would travel and go out their way to shop at a supermarket where they could save money. Which alternatively lead to Asda losing customers, as many supermarkets where competing with each other with the same strategy called ‘price competition’. Customers then would compare various supermarket’s prices before shopping, this made Asda realise they had to deliver quality products whilst selling them at low prices which was keeping the customers happy with the value for their money. Therefore Asda put out a strapline in order to attract customers ‘ASDA Price’ , which put Asda in a better positon than other competitors , but then Tesco copied the strategy by using ‘Tesco Value’ as well as Sainsbury’s using a similar strapline ‘ Sainsbury’s

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As rules and some conditions of retail terms, normally the shopping Centre gives one month rent free period for new retailers to prepare and set up their new shops. And there is also have non-cash discount which is about 3% for rental fee. 3. Market Research As it has mention above, New South Wales(NSW) contributes the largest GDP compare to others nations’ GDP all over Australia.

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Consumers are suffering due to price hike. There is lack of competition in the market. There is monopoly of the TELSTRA in telecommunications network. There is the cosy duopoly between the supermarket giants Coles and Woolworths. The petrol retailers and banks are excellent examples of the oligopolistic markets.

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This strategy is aiming at creating future trust and good relationship with the customers given that in any organization the creation of more customers starts with value in pricing. Essentially, Sear Canada Company is offering great deals whereby it has introduced a weekly reduction of prices which is promoted through flyers hence attracting huge number of customers towards their products. Typically, the introduction

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Woolworths Limited has been ranked Australia’s leading retail stores. With the aim of maintain the

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In Attachment 8, this chart shows the Hi-Value Supermarket shopper interview results the studies that were conducted. This breaks down all 3 stores and provides more in-depth knowledge of their superior characteristics. In Attachment 9, it shows the financial situation which breaks down the 5%, 7%, and 10% possible price reductions. It is easier to compare the numbers in the different categories. Gross profit margin and breakeven sales numbers were conducted so

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Aldi has excellent strategy in order to sustain the competitive advantage considering these issues. “Incredible

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Therefore, it is advisable to keep the money in the country and to reinvest it in the long-term. Furthermore, the product range should be influenced to a certain extent by the goods and service tax exemptions for mostly unprocessed food, in order to be able to achieve a competitive price point. In general, the Australian market requires a more price conscious approach, because the agricultural environment offers high quality products and consequently the product range of the competing supermarkets are already more similar than in the

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At the same time these two will make market anti-competitive and it will leads to three major concerns i.e. Selling power, buying power and retail. a. Selling Power- The consumers will be bound to purchase the product either from Coles or Woolworths. This will decrease the chances of discount on various products. b. Buying Power-

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Pure competition drives down prices due to a large consumer need, for example restaurants or clothing. Similarly, a duopoly is when two companies own an industry and balance each other with an agreement on share ownership; for example, Fannie Mae and Freddie Mac, Airbus and Boeing, and Visa and MasterCard. In addition, there are monopolies in which a few select companies dominate and compete in a market, such as the American Chemical Industry and utility companies. In these companies, prices go down with more companies competing and in the food industry they don’t have a regulated stopping point at setting the price bar. This makes them able to fluctuate as they wish(Gilani).

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Tesco is amongst the largest food retailers in the United Kingdom (U.K) with over 3,400 stores and staff amounting up to 310,000. Tesco operates predominately in Europe and America with their headquarters located in the U.K. Tesco has the greatest market share in the U.K dominating approximately 28% of the overall market at the end of 2017. However, there is a constant battle in the highly competitive U.K supermarket industry with the four major players being Tesco, Sainsbury, ASDA and Morrisons. In recent years, Tesco has had to change their business model as well as their services to stay a market leader and differ-entiate from the competition. To find the main sources of competitive advantage that Tesco has over its competitors an analysis of the structure of the industry should be under-taken (Porter, 1980).

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The main objective of aldi is to grow its market all over the world. Thre main aim is to provide the customers high quality product with guarantee low

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ALDI specializes on its own labeled products brand, creates high quality products with fair features, designs and packaging, ALDI also focuses on the variety of products that are mostly needed in each and every household, so ALDI does not only offer food but also offers electronic products, clothes, household goods, health and beauty products. By creating ALDI’s exclusive own brands, ALDI can minimize the costs on the products itself, therefore listing low prices for customers; Also ALDI is fortunate enough for its high purchasing power from suppliers, therefore ALDI can bargain the best prices so it can keep low costs and low prices; Another several ways ALDI is minimizing costs is for example: cart renting, as well as ALDI’s re-usable bags to reduce costs and insure low prices and saving for customers. ALDI took into consideration the importance of locating its stores in places convenient for people and also accessible, also taking into consideration public transportation links and parking spaces available, creating online channels for customers to locate their nearest ALDI store; Yet unlike other supermarket ALDI is not opened for 24H, ALDI’s opening hours are at the times where people are most likely to go shopping to minimize cost. As mentioned before prices aren’t something ALDI can compromise on and one of ALDI’s strategies is minimizing costs for competitive

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