A Review on Strategic Analysis of Australian Supermarkets

Abstract

In Australia, Coles and Woolworths are the two primary participants in the grocery sector. They split about 80% of the whole retail market for groceries. In Sydney, one of Australia's major cities, Woolworths launched new food kiosks in 1924, while Coles opened the country's first supermarket in 1960. Coles and Woolworths consistently share most of the market in the Australian supermarket industry, which is known as a "duopoly." Between Coles and Woolworths and its retailers, there has been an imbalance of market power for the last few decades (suppliers). Numerous studies indicate that Woolworths and Coles conduct business in 840 and 741 supermarkets, respectively, in Australia. However, regardless of the three variables, these essential players can only locate a suitable company in the competitive and non-competitive market. The factors are buying power, selling power, and retail chain. This duopoly, dominated by the two big business groups, can potentially serve each retail product, including ready-to-eat foods, fresh food, and other essential retail products. This short article is concerned with the strategic analysis of the two big players in the Australian market, irrespective of environment, socioeconomic, politics, various usable tools, techniques, rules, and regulations. Swot analysis, the Five force model, value, rarity, imitability, and organization (VRIO) have been reviewed and discussed for both the market leaders. The past, present, and future potentialities also have drawn in the article with the snaky diagram and analytical tables. In conclusion, profit margins are obtained due to successful differentiation, which enables the company to demand even higher prices. Additionally, it promotes customer loyalty, which contributes to the financial stability and growth of the business.