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Costco Executive Summary

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This will bring pressure on the returns of competitors as the impact of the above. This will also increase sales in terms of cross-shopping rates based on UBS evidence Lab Shopper study that rates already sit at c85%. Therefore, will resulted to increase price investment and basket on promotion from retailers to attract buyers. External Competitors >Costco a U.S owned who offers bulk package groceries. >Convenience Stores it adds competition in the Supermarket and grocery stores by stocking a variety of products with a ‘mini Supermarket’ store set up. >Restaurants, Cafes and Takeaway food Services they compete in Supermarkets when consumers eat out that will result to lessen the consumers purchase in …show more content…

It was emphasized the role of the Trade Practices Act is to safeguard the competitive process and not the competitors individual health. 1.5 Trends of the total market It is forecast to decline, unemployment figures and remain higher than pre global crisis that affect customers purchase conditions for major household items, such as groceries. Improved low-cost private-label products have become increasingly attracted to customers, especially low-income families. Consumers prefer lower priced and ‘on-special’ items, rather than higher price items. The private-label products will continue to grow and extend beyond staples like milk, flour and sugar. This will influence the industry demand over the next five years. III. Financial and Corporate Performance The company contributed a strong revenue growth of $30.9 billion over the five years through 2016-17.The company outperformance revenue growth has nothing compared to the overall industry. The company aims to bring satisfaction with the needs of customers by providing goods and services in a professional and a competitive …show more content…

Possible Recommendations • Internal diversification through internal expansion in Vietnam or Thailand. • Increase profitability or greater emphasis in higher items such as cosmetics, or Tele communication products. • Maintain growth, Increase turnover and Increase profitability by increasing volume of sales. References: Gargano, S. (2015, April). IBISWorld Industry Report G4111.Supermarkets and Groceries Stores in Australia. Retrieved from http://www.ibisworld.com Woolworths and Coles pricing strategy-pricing insight (2015)Retrieved 14 April 2017 from www.pricinginsight.com.au/pricing-diaries/woolworths-coles-pricing-strategy Jon,C.Supplier,customer relationships key to Coles’ retail strategy (2012) Retrieved 15 April 2017 from www.beefcentral.com/...relationships-key-to-coles-retail-strategy Hoyer W., D., (1984). An Examination of Consumer Decision Making for a Common Repeat Purchase Product. The Journal of Consumer Research, 11(3), 822-829. Coles group SWOT Analysis/USP & Competitors/Brandname Retrieved 16 April 2017 from http://www.mbaskool.com/brandguide/lifestyle-and-retail/9926-coles-group.html Gargano, S. (2016, June). IBISWorld Company Report. Wesfarmers Limited. Retrieved from

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