National Service Retail Market Currently †Myassignmenthelp.Com

Question: Discuss About The National Service Retail Market Currently? Answer: Introducation Coles Ltd is the subsidiary of Wesfarmers Ltd and is a national full service retail market that is currently serving more than 20 million customers. The reason for selecting this particular organization is that it is one of the subsidiary of largest retail supermarket operating in Australia. Aim of coal is to provide people with quality, trust, value and service. Organization has online platform providing groceries, fresh foods, fuel, liquor and general merchandize to customers. Coles Ltd has many department or division such as online, liquor, financial services, express (Block et al. 2015). Porters five forces are an instrument for competitive analysis and it depicts about intensity of competition in industry such as retail. . There are five competitive forces that shapes the strategy of Coles ltd and it provides a holistic way of looking at the retail industry. All the five forces has underlying drivers that helps in differentiating the organization. Coles Ltd is able to formulate strategies based on the five forces. The strong excellence of organization is that it has diverse business operation that helps in commanding profit in market. It helps in distinguishing market attractiveness of business and determination of attractiveness. Five forces affecting the business and excellence of organization are as follows. Threat of new entrants is one of the factor of porters five force (Dhliwayo 2014). There are some or more of threats for every business. Price leadership position of organization can be impacted by pricing strategies of competitors. Market entry threat for Co les Ltd is low and competition in this industry to this organization comes from small supermarkets and independent grocers. Competitive rivalry for Coles is medium to high due to unique and different operating model. Buyers marketing power- Organization is able to recognize the revenue by passing the rewards of goods ownership to buyers. Bargaining power of byers is too high. Suppliers marketing power- Collaborative, long-term and deeper relationship with suppliers has helped the organization to focus on improving fresh foods offered. Coles are able to create a cost effective environment by its continued transition to suppliers. Brand penetration of organization was expanded by the implementation of partnership program with key suppliers. Suppliers has considerable influence over them by organization due to their large market share. Existing rivalry among competitors impacting the Coles business. Efficiency and profitability of Cole was improved due to adopting and incorporating cus tomer-focusing strategy. Coles has experienced a steady growth in their revenue due to delivering better quality and investing in lower prices through development of strong store base and Australian first sourcing policy (Rashidirad et al. 2013). Availability of substitutes is another force of Porters analysis. There are for main competitors in the retail industry with similar price and therefore the threat of substitution is from high to medium. From the above analysis of Porters five forces, to can be said that organization has been excellence in various aspects driven by the five forces. For competing with organization such, competitor would require brand name, huge infrastructure and supply chain. A continued market dominance is enjoyed by Coles and therefore making it a powerful supermarket. Woolworths limited: Woolworths is the largest supermarket operating in Australia and the priority of organization is to place customers at top. The reason for selecting this particular organization is that it is the largest organization in retail industry. It intends to build a great team of retail that listens, meets all the needs of customer, suppliers, and provides them with experience shopping experience. Many factors are driving the success and excellence of organization such as choice, technology and demand. The company is forced to decrease the price due to strong bargaining power of customers as the attribution of purchase stores. One of the major strategies that leads to its excellence is delivering lower priced products for meeting the needs of customers (Rao 2017). The Porters five forces explain the competitive analysis of Woolworths. Woolworths majority customers are individual buyers having strong bargaining power. The bargaining power of suppliers is low as their dependence of suppliers is low indicating that bargaining power of suppliers is weak. There are several reason attributing to insignificance of threat of new entrants or retailers in the industry. Excellence in quality foods and huge number of stores are involved in operating the business. For new entrants, there is risks associated with losing the investment as Woolworths provide a high degree of competition to the potential entrants. Nonetheless, the long-term profitability of organization is impacted by the pricing actions that has resulted in considerable concern among suppliers. Another excellence are of organization is supplying the products by promoting sustainable agriculture (Lillis and Sweeney 2013). Another force is threat of availability of substitutes service and produ cts- A high degree of competition is faced by business of Woolworths and for organization to face competition and build its brand image and reputation, some of innovative and competitive strategies sis enjoyed by business. One of the most important factor in the retailing industry is pricing strategy and therefore, in terms of substitutes of products and services, Woolworths faces high degree of competition (Porter and Lee 2015). Organization is at par in terms of excellence in products provided. There is high level of concentration in Woolworths market and the market share is limited by strong competitors presence. Woolworths is continuously is making effective strategies and creating competitive forces that has helped it in differentiating itself from other competitors. Woolworths has variable access to the distribution channel and all the existing competitors somewhat enjoy the same features. One of the most important factor in retail industry is pricing strategy and the customer decision process comprised of price of goods and convenience. For creating distinctive that will assist in creating excellence, Woolworth should have strategic alliance with organization that will help in enhancing their performance, adopting a culture of cost leadership, development that is people focused and proliferation (E. Dobbs 2014). Reference: Block, J.H., Kohn, K., Miller, D. and Ullrich, K., 2015. Necessity entrepreneurship and competitive strategy.Small Business Economics,44(1), pp.37-54. Dhliwayo, S., 2014. Entrepreneurship and competitive strategy: An integrative approach.The Journal of Entrepreneurship,23(1), pp.115-135. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry analysis templates.Competitiveness Review,24(1), pp.32-45. Lillis, B. and Sweeney, M., 2013. Managing the fit between the views of competitive strategy and the strategic role of service operations.European Management Journal,31(6), pp.564-590. Porter, M.E. and Lee, T.H., 2015. Why strategy matters now.New England Journal of Medicine,372(18), pp.1681-1684. Rao, C.B., 2017.Competitive strategy. Notion Press. Rashidirad, M., Soltani, E. and Syed, J., 2013. Strategic alignment between competitive strategy and dynamic capability: Conceptual framework and hypothesis development.Strategic Change,22(3?4), pp.213-224. Riasi, A., 2015. Competitive advantages of shadow banking industry: An analysis using Porter diamond model.Business Management and Strategy,6(2), pp.15-2