The study has identified Coles Supermarkets Australia Pty Ltd, a leading supermarket chain in Australia as the organisation to be described. The supermarket chain business is owned by Wesfarmers. The company operates in multiple industry i.e. retail, consumer services, and supermarket chain business including 776 supermarket stores in Australia (www.coles.com.au, 2017). By identifying the current strategic management practices of the firm, the study has evaluated the impact of theoretical concepts on the existing management of Coles.
Apparently, Coles Supermarkets Australia Pty Ltd has to deal with other market competitors such as Woolworths and Aldi as the price war of products increases in the recent years. Through the identification of theoretical concepts utilised by the supermarket chain, Coles Supermarkets Australia Pty Ltd has established its market authenticity. Therefore, the study evaluates the industry attractiveness, resource based review, and competitive advantage of the farm. Lastly, a list of recommendation has been provided to improve the current strategic practices of the firm leading to growth (Jie, 2010).
In order to understand the influence of industry attractiveness over the operations of Coles, the Porter’s five force analysis has been conducted. Due to the huge number of buyers and alternative options available in the market, the bargaining power of the buyers is too high for Coles. However, loyal consumers of Coles Supermarkets have been the major plus point for the business (Hawthorne and Low, 2017). On the other hand, Coles purchases goods directly from the farmers and manufacturers that reduce the bargaining power of the suppliers. Decisively, Coles Supermarkets Australia Pty Ltd has targeted the suppliers so that the profit margin of the company can be enhanced. For instance, the company has located producers and suppliers of products such as milk, vegetables, beef, meat, and other products that can be cost-effective for the business. As a result of the outcome, the pricing of products and quality of the items can be offered at the best rate. In this way, strategic cost-saving practices and low bargaining of suppliers have helped the business structure of Coles. Reportedly, the supermarket sales data in Australia has voted that the leading supermarkets chains have discounted the prices of products to be the first choice of the customers. Meanwhile, such aggressive pricing strategy of Coles has increased the market potentiality of the company (Ridge et al., 2015).
The level of current rivalry is quite high in the supermarket industry. The supermarket chain business in the Australian market has attracted so many firms to take advantage of the target demographics all over the country. As a result of the increasing number of market participants, leading organisations associated with the industry have to face significant challenges. By considering the tough market challenges from the leading business competitors such as Woolworths and Aldi, Coles Supermarkets Australia Pty Ltd has implemented conceptual theoretical framework to draw finest strategic interventions.
On the other hand, the level of substitution is high because Coles deals with a particular range of products that have a huge number of substitutes in the market. Coles Supermarkets Australia Pty Ltd has identified the market opportunities and the demand of the target demographics. Precisely, the company has valued the pricing strategy, facilities and services to get the attention of the target demographics. Meanwhile, the company has utilised the pricing theory in the product pricing to improve the business environment (Rotha?rmel, 2017). Precisely, Coles Supermarkets Australia Pty Ltd has never compromised with quality, to say the least. Hence, the goodwill of the brand has worked in favour of the company (Hawthorne and Low, 2017). Hence, it becomes quite difficult for a new firm to enter the supermarket business and stand against a market leader like Coles.
The resource based views have been analysed in this particular section as follows:
Coles Supermarkets Australia Pty Ltd has aggressively utilised the human resources as well as financial resources to good effect. The management of Coles has utilised the employee skills to the serve the customers in a better way. The human resources have been given adequate sales training so that the workforce can influence the customers to change their purchasing behaviour. On the other hand, the financial resources have been utilised so that the condition as well as infrastructure of the business such as marketing, transportation of products and other facilities in the stores are improved as per the requirement (Hawthorne and Low, 2017).
The supermarket chain business of Coles has correctly identified the organisational capabilities such as brand name, quality of services, stores at major locations and professional workforce. As a result of the scenario, the management has increased targets for the employees so that the overall productivity and market share of the firm will be improved (Heizer, Render and Munson, 2017). Recently, the organisation has been awarded for showing exceptional corporate social responsibility towards the community. Understandably, such sustainable organisational capabilities have improved the image of the business towards the target demographics.
Customer loyalty and satisfaction of the target demographics have been the prime core competencies of Coles. The company value the customers and respond to their demand so that the supply chain will be maintained at the highest order. On the other hand, the employee engagement has improved the overall performance of the firm. Decisively, the core competencies of the firm have elevated the performance of the retail business in the target market so that the company can stay a step ahead of the other market rivals operating in the Australian market (Pitts and Lei, 2010).
Michael Porter developed the competitive advantage theory that analyses the competitiveness of a nation and its implications. The competitive advantage theory is an essential management tool used to understand the factors that leads to competitive advantage for a firm (Foss, 2007). It is important to note that a firm competes in the international market and not a nation. Hence, the theory begins with individual firms and builds up to an entire economy as a whole. According to Michael Porter, the four major determinants of competitiveness are presented herein below to understand the influence of the theory on the strategic management practices of the Coles (Doyle, 2009).
By considering the above analysis, the following recommendations are provided to the management of Coles Supermarket to enhance its market growth:
Product diversification: The product diversification strategy is required to seek competitive advantage over the rivals. For example, the company sells particular brands and category of products that limits the number of customers (Smith, 2014). Hence, increasing the product range will enhance the customers and revenue of the firm.
Focus over marketing strategy: Coles need to focus on digital and innovative marketing strategy in order to enhance the number of customers and retain the older ones. It can make use of social media advertising, Google AdWord and many other to attract more customers.
Competitive Pricing: In order to survive and maintain its market positioning, the company needs to maintain the competitive pricing policy (Smith, 2014). As the company is operating in a price war environment, a hike of price may lead to a high level of profit for the rival firms. Hence, the competitive pricing policy is recommended to the firm to survive and seek growth in the current market.
Coles is one of the reputed and largest Supermarket chain businesses in Australia. The core competencies of the firm and the current strategies have helped the company seek competitive advantage in the market. On the other hand, it has several core competencies that have led to the success of the firm. Irrespective of the current success, the company needs to make changes in its current policy in order to enhance its growth in the long run. Conclusively, diversification strategy, modern marketing strategy and competitive pricing policy are the key to success for Coles Supermarkets Australia Pty Ltd in the upcoming years.
Cole, G. (2015). Personnel management. 1st ed. London: Continuum.
Doyle, W. (2009). Situated Practice: A Reflection on Person-Centered Classroom Management. Theory Into Practice, 48(2), pp.156-159.
Foss, N. (2007). Strategic belief management. Strategic Organization, 5(3), pp.249-258.
Hawthorne, M. and Low, C. (2017). Struggling supermarkets rely on beer, babies and smokes. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/retail/coles-woolworth-aldi-in-battle-for-diminishing-shopper-dollars-20170124-gtxwgq.html [Accessed Mar. 2017].
Heizer, J., Render, B. and Munson, C. (2017). Principles of operations management. 1st ed. Boston: Pearson.
Jie, Y. (2010). The Optimal Supermarket Service. International Journal of Business and Management, 5(2).
Petit, Y. (2012). Advancing project and portfolio management research: applying strategic management theories. Strategic Direction, 28(9).
Pitts, R. and Lei, D. (2010). Strategic management. 1st ed. Cincinnati, OH: South-Western College Pub.
Ridge, K., Weisberg, D., Ilgaz, H., Hirsh-Pasek, K. and Golinkoff, R. (2015). Supermarket Speak: Increasing Talk Among Low-Socioeconomic Status Families. Mind, Brain, and Education, 9(3), pp.127-135.
Rotha?rmel, F. (2017). Strategic management. 1st ed. New York, NY: McGraw-Hill Education.
Smith, H. (2014). Supermarket Choice and Supermarket Competition in Market Equilibrium. Review of Economic Studies, 71(1), pp.235-263.
www.coles.com.au. (2017). Coles History. [online] Available at: https://www.coles.com.au/about-coles/centenary [Accessed Mar. 2017].
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2018). Application Of Theoretical Concepts. Retrieved from https://myassignmenthelp.com/free-samples/application-of-theoretical-concepts.
"Application Of Theoretical Concepts." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/application-of-theoretical-concepts.
My Assignment Help (2018) Application Of Theoretical Concepts [Online]. Available from: https://myassignmenthelp.com/free-samples/application-of-theoretical-concepts
[Accessed 30 May 2020].
My Assignment Help. 'Application Of Theoretical Concepts' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/application-of-theoretical-concepts> accessed 30 May 2020.
My Assignment Help. Application Of Theoretical Concepts [Internet]. My Assignment Help. 2018 [cited 30 May 2020]. Available from: https://myassignmenthelp.com/free-samples/application-of-theoretical-concepts.
MyAssignmenthelp.com possesses a talented team of assignment help tutors, who work round the clock to provide comfort to students, who wonder 'can someone assignment writing services at a cheap price'. With MyAssignmenthelp.com, students don't need to waste their time in searching 'help me with my assignment', instead, they can convey their requirements and receive needed help with assignment writing. Our popular servicers include math assignment help, accounting assignment help, marketing assignment help, etc.
Answer: Project Activities Activity List: WBS Task Name Duration Start Finish 0 Essendon & Buckley Street level crossing removal 985 days Wed 4/25/18 Tue 2/1/22 1 Initiation phase of the project 73 days Wed 4/25/18 Fri 8/3/18 1.1 Identifying objectives of the project 15 days Wed 4/25/18 Tue 5/15/18 1.2 Undertak...Read More
Answer: Portraying company’s information, while depicting core markets, activities, and factors: The company is relatively focused in mining and exploring gold, copper, and uranium in Australia. Marmota Limited is mainly situated in south of Australia, where relevant fields are controlled by the company for its mining needs. The company operations in Australia and is linked with the Australian consumer demand, which could help in genera...Read More
Answer: Introduction: The Australian Health Survey 2011-2012 found that nearly two in every three people aged two years and over had a usual intake of sodium that exceeded the Upper Limit (UL). Intakes of sodium were also consistently higher for males than females. At a population level, how do you think sodium intakes could decrease so that more people are meeting, (or at least not exceeding) the recommendations? Sodium intake has ...Read More
Answer: Introduction The area of organization theory is considered as a fragmented body of knowledge by including various competing theories to understand and explain the organization design and its actions. There are many researchers, which claim that, the arguments among different organizational theories are the level of competition of their ideas and thoughts (D’Adderio, and Pollock, 2014). Some management experts assume that these t...Read More
Answer: 1. The usages of BIM in facilities management The information which is stored in within the BIM includes the blueprints, schedules and the asset data such as location, cost, carbon impact, and maintenance, integrating the BIM with the facility management software system is a great tool to standardized data and also the better services. Reliable data is provided by BIM which can be used to report to the board. This because the data can b...Read More
Just share Requriment and get customize Solution.
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
I got amazing my final research report from myassignment help. Thank you so much
Thanks for saving my life. I am learning new stuffs. It was wonderfully arranged.
it was perfect and i received it on time. they helped me a lot. very good staff.
I really enjoy this assignment, I hope I can receive another assignments like this one, it was a really good one