...Mini Case Analysis Introduction The Supermarkets and Grocery Stores industry in Australia is under fierce competition, and the industry revenue is expected to grow at an annualized 2.2% in the next few years, to reach $98.1 billion (IBIS 2016). A growing number of discounters have infiltrated the industry, such as ALDI, which has forced two dominated companies, Woolworths and Coles, to lower prices and increase the number of private-label products (IBIS 2016). Malaysia hypermarket retail chain Giant is also eyeing the Australian market. Given the business context in Australia, political, economic and technological are the most relevant macro environmental factors that Giant should consider. Political factor The export tariff is an important issue in trading as Australia was Malaysia’s 10th largest export destination, accounting for 3.6 percent of Malaysia’s exports (Department of the Prime Minister and Cabinet 2012). The Malaysia-Australia Free Trade Agreement (MAFTA), was signed in May 2012 and came into force on 1 January 2013, provided a high level of market access liberalization for goods into the Australian market (Department of the Prime Minister and Cabinet 2012). The implement of MAFTA is likely to lower the cost of Malaysian products, enhance the relationship between trading partners and create investment opportunities and jobs in Australia market. Furthermore, according to the report of the Economist Intelligence Unit, Australia achieved one of the highest rankings...
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...their intentions to fill the shelfs of top Australian Supermarkets. Bula Coffee is targeting supermarket giants such as WoolWorths and Wesfarmers as their retailing and wholesaling stations. With more market and customer coverage these two supermarkets will be giving tremendous competitive advantage to the sale of Bula Coffee. Both WoolWorths and Wesfarmers cover about 80% of the market in Australia. The Woolworths is specialised in supermarket, petroleum, liquor and general merchandise, with Wesfarmers focussing on the same fields as well. Being a retailing giant and serving almost 18 million customers every week in Australia the WoolWorths Limited, is the perfect place for Bula Coffee to be exported to. WoolWorths supermarket division include WoolWorths Supermarket, Safeway Stores and Thomas Dux Groser. All these supermarkets can be found mainly across Australia with Safeway Stores and Thomas Groser being mostly found in Victoria, Melbourne and New South Wales. The company reaches gives its customers a wide range of flexibility in shopping with ATM machine places in nearly every stores and also a very convenient online shopping website. WoolWorths Limited is continuously looking for ways to satisfy its customers demand with more effective and efficient techniques. Wesfarmers, being one of the largest public companies in Australia has two major supermarket subsidiaries compromising of, Coles Supermarket and BI-LO Supermarket. With the Wesfarmer’s turnover of more than $2.2 million...
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...BE PHOTOCOPIED OR DISTRIBUTED. Woolworths Limited TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4 Woolworths Limited © MarketLine Page 2 Woolworths Limited Company Overview COMPANY OVERVIEW Woolworths Limited (Woolworths or 'the company') owns and operates retail stores that sell food, liquor, fuel, general merchandise and home improvement products in Australia and New Zealand. It is headquartered in Bella Vista, Australia, and employs more than 197,000 people. The company recorded revenues (excluding financial income) of A$58,921.7 million (approximately $60,506.7 million) during financial year ended June 2013 (FY2013), an increase of 6.9% over FY2012. The operating profit of the company was A$3,594.6 million (approximately $3,691.3 million) during FY2013, an increase of 7.4% over FY2012. The net profit was A$2,259.4 million (approximately $2,320.2 million) in FY2013, an increase of 24.4% over FY2012. KEY FACTS Head Office Woolworths Limited 1 Woolworths Way Bella Vista New South Wales 2153 AUS 61 2 8885 0000 Phone Fax Web Address http://www.woolworthslimited.com.au Revenue / turnover 58,921.7 (AUD Mn) Financial...
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...ALDI IN AUSTRALIA: WHAT WILL BE THE IMPACT? May 2000 Aldi in Australia Aldi will become a small but significant player in the Australian market OVERVIEW I. Aldi is the world’s lowest cost grocery retailer II. The United Kingdom provides an excellent model for the development of Aldi in Australia III. The arrival of Aldi in Australia will have a focused impact, felt mostly on key line pricing and by Franklins Aldi 2 Aldi in Australia I. Aldi is the world’s lowest cost grocery retailer – Ia. Aldi acts as a category killer in core grocery lines – Ib. Aldi has a low-cost logistics and operational system that works on a 12% gross margin – Ic. Privately owned Aldi has a long investment horizon and plenty of patient capital – Id. There are few threats to Aldi or the limited assortment store. Aldi is immune to competition, even from WalMart Aldi 3 Aldi in Australia Ia. Aldi acts as a category killer in core grocery lines – Aldi is a limited assortment discount grocery store, a format characterized by a high turnover on a narrow range of grocery items in a small space – The main appeal of limited assortment stores is low prices – Packaged grocery accounts for almost 50% of a German Aldi store’s turnover and 50% of an American store’s SKU mix – In Germany, over 70% of German households shop at Aldi, mostly for basic staples Aldi 4 Aldi in Australia Aldi is a limited assortment discount grocery store… TYPES OF DISCOUNT...
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...outcome for countries and nations. Globalisation encourages international partnership but extraordinary cognitive skill in risky decision-making required for domestic competitiveness. In Australia, competition is one of the key priorities in Business strategies for long-term success. Thus to be competitive in the market, it is crucial for Malaysia Giant Company to study the Australian business external environmental factors. The three most relevant macro environmental factors that will affect Giants discussed below. ECONOMIC FACTORS Businesses analyses economic factors and its determinants as they play a vital role in determining where an economy might move. These economic factors are not limited to economic phenomena such as tax policy, inflation and many more (Ho 2014). In February, Reserve Bank of Australia (2016) highlighted the economic growth in 2015 is a bit low on average compared to previous years. However, the Supermarket and the Grocery Market Revenue is projected to increase by 2.5% in 2015-16 (IBIS 2016) and 82% of the supermarket expected to get more earning (Delloite 2016). Since these factors affect Giant’s success, Giant should study the factors and draw strategic plans accordingly for a successful business. Firstly, since there is a fierce competition in Australian supermarket and grocery Industry, a success of a new firm will be highly impacted, as market share will be shared among competitors whilst prices dropped as, more suppliers supplying closely substitute...
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...Submission to the Competition Policy Review made by ALDI Stores 10 June 2014 1. Introduction ALDI Stores Australia welcomes the opportunity to make this submission to the Competition Policy Review (the Review). Since ALDI opened its first stores at Marrickville and Bankstown Airport in January 2001, our rapid growth has meant that an estimated 4.2 million people shop with us in an average four-week period 1. Our arrival in Australia has helped redefine the retail landscape, introducing a new and higher quality standard in private-label groceries. In focussing relentlessly on delivering exceptional quality products, matching that of the market leading brands but at prices significantly lower, ALDI provides a unique alternative to the Australian consumer. Our strong sales growth is testament to customers voting with their feet and embracing the very fact that we offer something different. Despite ALDI’s successful establishment in Australia over the last 13 years, the fact is that our expansion has been considerably slower than planned due to regulatory constraints. These take the form of rigid and overly-prescriptive land use planning and zoning rules at state and local government levels that have resulted in a chronic shortage of suitably zoned land for small format supermarkets in many built-up areas. The direct consequence of this significant barrier to expansion is that fewer Australians are able to benefit from the competition, lower prices...
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...Submission to the Competition Policy Review made by ALDI Stores 10 June 2014 1. Introduction ALDI Stores Australia welcomes the opportunity to make this submission to the Competition Policy Review (the Review). Since ALDI opened its first stores at Marrickville and Bankstown Airport in January 2001, our rapid growth has meant that an estimated 4.2 million people shop with us in an average four-week period 1. Our arrival in Australia has helped redefine the retail landscape, introducing a new and higher quality standard in private-label groceries. In focussing relentlessly on delivering exceptional quality products, matching that of the market leading brands but at prices significantly lower, ALDI provides a unique alternative to the Australian consumer. Our strong sales growth is testament to customers voting with their feet and embracing the very fact that we offer something different. Despite ALDI’s successful establishment in Australia over the last 13 years, the fact is that our expansion has been considerably slower than planned due to regulatory constraints. These take the form of rigid and overly-prescriptive land use planning and zoning rules at state and local government levels that have resulted in a chronic shortage of suitably zoned land for small format supermarkets in many built-up areas. The direct consequence of this significant barrier to expansion is that fewer Australians are able to benefit from the competition, lower prices...
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....................................................5 Our new format stores ...........................................................8 Our team ......................................................................................9 Responsible sourcing ............................................................10 Australia first ............................................................................ 12 Our sustainability ................................................................... 13 Our community ....................................................................... 14 Our 3 year performance summary ..................................17 Cover image: supplier to Coles for over 20 years, apple grower Harvey Giblett of Newton Brothers Orchards, located in Manjimup, Western Australia. About us Coles is a leading national food, liquor and convenience retailer in Australia. We employ more than 102,000 team members across our brands, which include Coles and Bi-Lo supermarkets, Coles Express, 1st Choice Liquor Superstore, Liquorland, Vintage Cellars and Spirit Hotels. Our goal What we want to achieve “To give the people of Australia a shop they trust, delivering quality, service and value.” Our values What we believe in Our customers come first – always! We support each other to get things done. Our circle for success Our ways of working Our six point plan to deliver our goal How we work together Lead effectively Act...
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...Melbourne & Perth, Australia Executive Summary The purpose of this report is to provide insights into the Australia’s fast casual restaurant industry and the level of competition of Manhattan Fish Market were in the new market, Australia. Through the brief overview of Australia’s Political, economic, Social, Technological and Environmental factors to gain a better understanding of the external environmental factors of Australia. With the application of Michael Porter’s three out of five forces of the model, 1. Bargaining power of buyer 2. Threats of substitutes 3. Intensity of rivalries in fast casual dining to access the level of competition that Manhattan Fish Market were to face if it were to decide to expand into Australia. An overall assessment of the level of competitiveness/profitability of the restaurant industry in Australia will be made from the analysis of Michael Porter’s model. Lastly, recommending possible ways Manhattan Fish Market could overcome the threats of substitution/ bargaining power of buyers discussed in the report. Introduction Australia has been said to have a political system that is highly effective in responding to economic challenges and policy direction. Australia has good trading policies with its neighboring countries and its government open door policy has encouraged various international businesses to set up companies in Australia thus benefitting the Australian consumers from the increased choices. Australia is not involved in...
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...Analysis of the grocery industry Coles Supermarkets Australia October 2012 Analysis of the grocery industry Contents Glossary ..................................................................................................................................... i Executive Summary.................................................................................................................. iii 1 Introduction .................................................................................................................... 1 1.1 1.2 Project approach and objectives........................................................................................ 1 Report structure ............................................................................................................... 2 2 3 Coles – an overview ........................................................................................................ 3 Economic contribution of Coles ....................................................................................... 5 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Modelling approach .......................................................................................................... 5 Direct economic contribution ............................................................................................ 6 Indirect economic contribution ......................................................................................... 6 Total economic contribution .......
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...nothingAnswer No 3 Retail food industry of the Australia has been changing over recent decades, affecting consumers, suppliers and traders. These changes have increased the efficiency of different aspects of the retail food industry. Shifts in market power, change in customer’s preference and taste, change in demographic population and industry concentration in food retailing could also have an influence on further capturing the potential efficiencies in this sector. The Study conducted by Andrew J and Don G (2005) shows that retailing food industry in Australia covers roughly 46 per cent of the food industry Australian food industry was stimulated after the Second World War. The industry advanced rapidly due to the new and urgent demand for unfamiliar service rations to precise specifications. Existing technologies were reorganized and additional ones developed. Scientific wartime innovation gave rise to improved processes, products and product applications. Today the food industry is a vital component of the Australian economy. The industry makes a significant contribution to the economies through employment, business and service opportunities. Many new industries were inaugurated in the late 1980s and 1990s to take benefit of emerging market opportunities. The trends on Supermarket and grocery store market concentration The Australian Competition and Consumer Commission (2005) reported that the national grocery market shares of Woolworths, Coles and Franklins raised 40...
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...growww.businessmonitor.com Q4 2010 AUStrALiA food & drink report INCLUDES 5-YEAR FORECASTS TO 2014 iSSn 1749-2580 published by Business Monitor international Ltd. AUSTRALIA FOOD & DRINK REPORT Q4 2010 INCLUDING 5-YEAR INDUSTRY FORECASTS BY BMI Part of BMI’s Industry Report & Forecasts Series Published by: Business Monitor International Copy deadline: July 2010 Business Monitor International Mermaid House, 2 Puddle Dock, London, EC4V 3DS, UK Tel: +44 (0) 20 7248 0468 Fax: +44 (0) 20 7248 0467 Email: subs@businessmonitor.com Web: http://www.businessmonitor.com © 2010 Business Monitor International. All rights reserved. All information contained in this publication is copyrighted in the name of Business Monitor International, and as such no part of this publication may be reproduced, repackaged, redistributed, resold in whole or in any part, or used in any form or by any means graphic, electronic or mechanical, including photocopying, recording, taping, or by information storage or retrieval, or by any other means, without the express written consent of the publisher. DISCLAIMER All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Business Monitor International accepts no liability whatsoever for any loss or damage resulting from errors...
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...repositioning efforts have added Coles future growth. Thus, Coles create more customer focused, value driven operation and improved business performance. • Strong Market Position - Coles considered as one of the largest full line retailers in Australia. The company have more than 2,400 Supermarkets ,liquor and convenience stores in Australia and New Zealand. Coles have 450 Kmart, Target and Officeworks stores that sells apparel and general merchandise. Coles operates 750 stores across Australia with over 11 million transaction a week. • Strong Brand Name - In the Australian retailing business Coles is recognized as a strong brand name. Their housebrand product offering have increased 14% of sales year on year. For several years Coles has been a leader of private brand it also operates stores under popular brand names like Target, Kmart and officeworks. Coles brand potential attract more customers therefore strengthening its bargaining...
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...world. Australia’s economic and political stability and skilled labour force, provides a welcoming environment for foreign investors. With respect to the retail industry, consumer goods expenditure of 183 billion US $ in 2009 and an expected 212 billion US $ in 2010 presents significant opportunity to foreign retailers. However, risk exists as there is a limited presence of related and supporting industries for non-food products. As well, domestic rivalry remains strong in both grocery and non-food segments. The objective is to implement Tesco’s hypermarket store format in Australia while increasing the company’s global market share. Tesco’s main competitors include domestic retailers such as Woolworths and Wesfarmers Limited and as well, Costco from the United States. The entry strategy into Australia will be an International Joint Venture with Coles Supermarkets, owned by Wesfarmers. Many Coles supermarket stores will then be remodeled into Tesco branded hypermarkets. In addition, Tesco will further employ its differentiation strategy by offering different departments...
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...Woolworths Limited overview Woolworths Limited (WOW) is a diversified retailer, which operates supermarkets, general merchandise stores, liquor, specialty and discount department stores. WOW operated under retail banners that include Woolworths, Safeway, Woolworths Liquor, BWS, Dan Murphy's, Big W, Foodtown, Langtons, Cellarmasters, Countdown, FreshChoice, Croma and Supervalue. In June 2012, WOW operates 1,033 supermarkets under the brands Woolworths and Safeway in Australia, and Countdown in New Zealand; 11 supermarkets under Thomas Dux brand in Sydney & Melbourne; 599 petrol outlets of which 132 are co-branded Woolworths/Caltex; 329 liquor stores under several banners including Dan Murphy's, BWS, Cellarmasters and Langtons; 172 general merchandise stores under the brand Big W; 15 and 21 home improvement stores under the Master and Danks brand; and operates 294 hotels under the ALH brand. WOW also provides financial services to its customers such as credit cards, prepaid credit cards and epump under the Woolworths Everyday Money brand. In 2012, WOW recorded an increase of 4.8% in revenues to AUD52,129.8 million and gross profit increased by 5.7% to AUD14,476.3 million. Net profit fell by 15.1% to AUD1816.7 million this was due to losses associated with the divestment of its wholesale and retail consumer electronics businesses. WOW is rated A3 by Moody’s and A- by Standard & Poor’s. Key Executive Staff Ralph Waters Chairman Ralph Waters was appointed...
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