Coles and Woolworths Case Study Essay - 1326 Words

1. The key to Woolworths’ faster growth than Coles Myers may be attributed to several reasons, one of them being its emphasis on diversification which saw it enter markets such as petrol. Woolworths offered everyday low price (EDLP) on established brands, a strategy akin to Wal-Mart in the United States which presents a competitive advantage against Coles Myers’ Kmart and Target divisions which maintained a ‘high-low’ pricing strategy. Woolworths CEO Roger Corbett who had prior experience with the management of Wal-Mart chain in the US, implemented ‘Project Refresh’ in 1999 to restructure the company’s supply chain, and to introduce new technology and the EDLP structure to its supermarkets. Furthermore, Woolworths’ success in entering the†¦show more content†¦2. Yes, however it depends not only on Coles Myers ability to respond to Woolworths’ competitive actions. But also its ability to innovate ahead of competitio n; to shed its ‘second mover’ status. While this may seem like a daunting task given Woolworths earlier realisation of success from ‘Project Refresh’, market commonality and resource similarity of the food and general merchandise sector ensure competition may be levelled out with less difficulty, in addition to this, Coles Myers had an advantage in terms of resource similarity against Woolworths in that the company’s new Source credit card could differentiate itself from Woolworths by offering full credit card capability along with a long-standing and valued rewards program. Furthermore, Fletcher has already begun the shift towards the reduction in costs incurred with logistics and supply chain solutions by the enforcement of just-in-time (JIT) production upon its 65000 suppliers, reduction of distribution centres from 41 to 24, implements improved technology, and streamline deliveries to stores. In detail, Fletcher unveiled plans directed at long te rm growth with the strategies designed to pressure suppliers into adopting the same IT systems that Coles Myers uses in its warehouses and stores so that it can build a more efficient e-trading platform. Fletcher expects to invest approximately $800 million over the next years in order to successfully implement this cost-cuttingShow MoreRelatedWoolworth’s Strategy and Its Implementation3134 Words   |  13 Pages- Woolworth’s Strategy and its Implementation Lecturer – Jessica Kennedy Due Date – 11:00pm Thursday 26th April 2012 Word Count – 2669 In order to analyse Woolworths’ strategy and its implementation, consideration will be given to the competitive environment that exists between Woolworths and Wesfarmers (Coles), the notion of competing duopolies and the role that management plays in the process. The purpose of this essay is to discuss competing duopolies and how they impact on theRead MoreWoolworths Limited Case Study5822 Words   |  23 Pagesï » ¿Background Woolworths Limited was foundedin 1924, and is Australias second largest employer. Colloquially referred to as Woolies, the company has grown to be Australias leading supermarket retailer. Woolworths has also gained a strong foothold in the retail markets in New Zealand. Woolworths officially listed on the Australian Stock Exchange (ASX) on 12 July 1993, and trades with the issuer code WOW. 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In either case, the College may impose penalties which can be very severe Declaration: â€Å"I/We certify that I/We can provide a copy of the attached assignment/report if required.† â€Å"I/We certify that the attached assignment/report is my/our own work and that all materialRead MoreAldi979 Words   |  4 Pages Individual Assessment Case Study ALDI Australia Opportunities and Future challenges By: Yusuf Yusuf ID:17759752 Tutor: Rylan Gan ALDI is one of the major supermarkets in Australia and is well known for its low prices. We have to analysis and recommend ways to maintain the high level of growth and strategic competiveness in light of the challenges the sector is facing. In this report we will be outlining theRead MoreAldi Case3268 Words   |  14 Pagesthat involves the purchase of goods from suppliers followed by sales to customers (Peterson Balasubramanian 2002, p. 10). Within Australia’s retail market, Woolworths and Coles have dominated Australia’s supermarket retail sector for many years. Woolworths has the biggest market share with 41.1 per cent of the grocery sector in 2011 whilst Coles is second with 31 per cent (Deloitte Access Economics, 2012). 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