Work report of Strategy Analysis of Coles Supermarkets of Myassignmen

Question: Discuss about the Strategy Analysis of Coles Supermarkets. Answer: Issue of Market Competition Market competition poses a major threat for Coles Supermarkets in operating its business successfully. Through external market environment analysis, it was gathered that the company faces a fierce competition from both international and local retailers. New entrants are a threat to the company as the number of retailers is increasing. This is because the Australian retail sector is currently offering stable profits (Chimhundu et al. 2015). Availability of alternative products is increasing competition for Coles Supermarkets. Online retailers are having a cost advantage over the company and with this; Coles are facing harsh technological and logistical challenges. Moreover, the retailer is facing pricing challenges from its new competitors, changing consumer demand and change in their taste from cultural influences which is another threat for the retailer that restricts it from gaining a competitive advantage. Internal analysis indicates threat from supermarket chain Aldi who centers on low cost private level daily products (Nenycz-Thiel and Romaniuk 2012). Financial analysis of Coles Supermarkets indicates that profit margins of the company are under pressure because of fierce marketing and pricing competition in Australian retail market. Alternative Solutions to the Problem Considering the threats faced by Coles Supermarkets some strategic solutions are offered to the company. A well-built collaboration of its strategies with variations in consumer taste will facilitate growth of the retailers brand. Core competencies including highly optimized supply chin and remaining expert in retail existence along with collecting items from suppliers to its distribution stores will keep its foods safe increasing the probability to purchase (Nenycz-Thiel and Romaniuk 2012). Building strategies to increase online sales and building the suppliers network will facilitate Coles to establish itself as best food retailer in Australian market. Marketing strategies of Coles should focus on promoting its improved services and products that introduces range of healthy and quality products. Marketing campaigns should consider increased interactions with consumers by conducting master chef workshops and aided shopping for elderly or disabled consumers that will improve consumer service. Low cost pricing strategies for all its offerings will help the retailer in competing successfully with the new entrants and maintaining high sales by providing mutual purchasing benefit to its customers. Additionally, to stay ahead of the growing competition Coles Supermarkets requires investing in new, innovative and sustainable business ventures (Pollard et al. 2014). Predicting a drop in the Australian supermarket, this strategy can support its sales growth (Pollard et al. 2014). Advantages and Disadvantages of Solutions New venture and business model investment may allow Coles supermarkets to leverage new technologies and establish a presence in international markets that could increase sales and profitability. However, it may be prudent for the retailer to control any imbalance in expertise and investments related to the new online venture (Zarkada-Fraser and Fraser 2015). Competitive pricing strategy or setting lower prices for all its products will help Coles to avoid price competition and increase sales by offering price benefit to consumers. However, Coles also needs other non-pricing ways for grabbing consumer attention such as differentiated consumer service (Ball et al. 2015). Improving online retailing strategy will offer the company with cost advantage over its major competitors (Ball et al. 2015). Along with gaining benefit of easy market access, reduced overheads costs is an added advantage. However, Coles may need to closely control website costs as ecommerce business is costly and legal issues including complex laws of consumer rights in the nation may be of consideration (Ball et al. 2015). Product and service improvement strategy with changing consumer demands and improving collaboration with suppliers for better product distribution is an effective strategy. Continual service improvement strategy by focusing on RD and high quality will help in giving competition to products of new entrants (Zarkada-Fraser and Fraser 2015). Supplier Relationship Management strategy will help the firm to gain great added value from suppliers. However, there may be a risk of security concerns to mitigate as a large amount of sensitive information is shared among suppliers and the company (Ball et al. 2015). Best Solution and Recommendations Developing online sales along with superior collaboration with suppliers can serve as best strategic solution for Coles Supermarkets as this will help in gaining several competitive advantages for brand growth. Reduced costs, better market access, use of new technologies for better consumer service, increased market shares through better sales can be attained through this strategy (Zarkada-Fraser and Fraser 2015). The retailer is recommended to implement online retail technological advancement measures. Online sales can be increased through matching online price with that of stores, specifically setting lower prices for online products. Additionally, great amounts of click-and-collect locations are to be launched in several locations that will include drive-through collection spot for online buyers. Changing the digital interactions for its online sites can help in leveraging its consumer loyalty programs (Dwivedi et al. 2012). Moreover, technological advancement in online business may be realized through adopting a hybrid cloud model that can achieve considerable cost reductions along with better consumer information management (Zarkada-Fraser and Fraser 2015). Other mobility projects should involve testing a tablet ordering solution for manufacture and a mobile-based selecting solution for enhancing its online store. Reference List Ball, K., McNaughton, S.A., Le, H.N., Gold, L., Mhurchu, C.N., Abbott, G., Pollard, C. and Crawford, D., 2015. 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Geographic factors as determinants of food security: a Western Australian food pricing and quality study.Asia Pac J Clin Nutr,23(4), pp.703-713. Zarkada-Fraser, A. and Fraser, C., 2015. Integrating social and economic orientated marketing: A study of retail management. InProceedings of the 2000 Academy of Marketing Science (AMS) Annual Conference, 9(4), pp. 219-223.