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Coles Australia

Executive Summary of Coles Australia

The report focused on Coles Australia and the strategic steps taken by the organization to get an edge over its competitors. The report identified that all the decisions of the organization were made keeping in mind the people of the country where it operated. Coles Australia had a vision of becoming the leader in the retail industry in Australia. However, if even one of the strategic steps that were taken by the organization were miscalculated the organization could have suffered heavy losses. It was also identified that the organization had slowly laid plans to diversify and the best location for the organization to move would be China or New Zealand.


Executive Summary.


Business level Strategy and Corporate level strategy.

Implementation of Business level strategy and Corporate-Level Strategy.

Value Chain.

Competitive action.

Threat Analysis.

Motivation and capability to respond.

Types of Competitive action.

Likelihood of Competitive reaction.



Introduction to Coles Australia

It is very important for organizations to strategically itself, the market place as well as its competitors. Strategic action, formation, and implementation play a significant role in the success or failure of a business. Even if one the following is not implemented correctly, it might lead to the fall of any big or small organization (Elbanna, Andrews & Pollanen, 2016).

This particular report will be focused on Coles and the Strategy that would be implemented by the organization to get an edge over its competitors. In this reports various corporate-level strategy, as well as the business-level strategy, will be incorporated. In addition to this, it will also be identified whether or not the organization has the resources as well as the competence to incorporate the strategies that are chosen by the organization.

The firm's value chain will also be analyzed and what are the changes or the steps that can be taken so that the organization can easily incorporate their business-level strategy more efficiently and effectively.

The organization should move to China as well as New Zealand. The main reason for choosing these particular countries is that. Most of the Australian based organizations are functioning in China, and Coles can easily take advantage of its brand image in the Chinese Market (Wang, 2016). On the other hand, the main reason behind choosing New Zealand is that this particular country is the closest to Australia whether it be in the case of distance, culture or the market dynamics, Coles can easily fit itself in its market structure

Business Level Strategy and Corporate Level Strategy

Every organization is trying to modify its business-level strategy. The main reason behind the above-provided scenario is that business-level strategy helps the organization to get an edge over its competitors. Whenever an organization plans to enhance its business-level strategy, they try to identify and fulfill the needs of the consumers as consumers are the most crucial element of this particular strategy (Seifzadeh & Rowe, 2019).

It has been identified that Coles Australia has established a cost leadership along with a differentiation strategy. Cost leadership strategy refers to a scenario where the organization provides itself with a competitive edge by operating at the minimum cost. Using this particular strategy has not only helped the organization to earn heavy profits but it has also helped the organization to attract more consumers. On the other hand, differentiation strategy helps the organization to provide its consumer with something new and unique which may directly or indirectly affect the retention rate of the loyal customers of the organization (Semuel, Siagian & Octavia, 2017).

Both the strategies that have been incorporated by the organization would help the organization to attain an edge over it, competitors, in the long run.

Corporate level strategies have helped many organizations to look and understand the market conditions as this particular strategy assists the organization to see the bigger picture. This particular strategy helps the organization to identify small details that might affect the outcome of the business. Corporate-level strategies are constructed after detailed analysis as they can help the organization to get a competitive edge in the unpredictable market place (Li & Chen, 2019).

The main aim of Coles Australia is to become the market leader of the retail industry in Australia. To fulfill its aim the organization has implemented the diversification strategy. This particular strategy has helped the organization to achieve a good position in the retail industry in Australia. Not only will this particular strategy be applicable in the short run but this particular strategy can easily help the organization, in the long run, this particular strategy will help the organization with growth opportunities until the strategy is completely saturated (Kim, Lee & Cho, 2016).

This particular strategy can help an organization identify new market possibilities, where the organization can conduct its business. In other words, this particular strategy helps an organization widen its horizon.

Implementation of Business Level Strategy and Corporate Level Strategy

Yes, the organization has the necessary resources and the capabilities to achieve its business-level strategy. Coles is a dignified and well-established brand in Australia. Because of which the organization can easily implement its differentiation strategy (Latif, Islam, & Mohamad, 2015). On the other hand, the cost leadership strategy where the organization tries to minimize its cost of operations can easily be incorporate with the superior supply chain of the organization (Thatte, Rao, & Ragu-Nathan, 2013). The implementation of these strategies has helped to minimize the cost of the products, which have helped the organization to have a diversified customer base.

Brand image plays a very crucial role in terms of differentiation, it helps the organization to portray an idea in the minds of their consumers that there is no such product in the market or there are no substitutes for the product that is been sold by an organization. Whereas, an efficient supply chain tries to utilize all the resources of the organization so that the cost of the product decreases significantly. It has been identified that Coles is completely dependent on trading partners. These individuals help to enhance the working of the supply chain of the organization by promising consistency (Coles Supply Standard, 2019).

Coles Australia should work on their diversification as they have all the resources as well as the capabilities to move to new markets or explore the current markets. As identified previously the organization aims to become the market leader in the Retail Industry in Australia. This can be easily achieved through diversification. The organization has a rich history in retailing, according to the annual report of the organization the company has spent the last one hundred and five years in retail. In addition to that, the suppliers of the organization are paid handsomely and in a timely fashion. The organization has already set a platform for diversification, as it was discovered that the organization gradually forming partnerships with multiple businesses such as Viva Energy, Ocado, and Australia Venue Co. another tool which can help the organization to diversify is its CSR practices, it was identified that the organization had spent around one hundred and fifteen million dollars only on community support. All the above factors can help the organization grow with the help of diversification (Coles Group, 2019).

Value Chain

Value Chain refers to a framework that is used by the organization to easily recognize and evaluate all the methods through which the organization can enhance its resources as well as the capabilities to add value. Value Chain is very important tools which can help the organization to identify ways through which the organization cut down their costs. In addition to this value chain can also help the organization to perceive its competitor's value chain (Curry, 2016). Most organizations design their value chain concerning the perception that they have made about their competitor's value chain. In this case, the Coles Australia Value chain plays a major role in the cost advantage strategy. To acquire cost advantage the organization has to completely restructure its value chain. The organization has to break the organization's activity into smaller divisions such as operations, sales, marketing, and service. However, this particular scenario is not only for the operational activities but it is also for the support activities. The support activities will be broken down into staffing activities that are human resource and procurement.

It has been witnessed that the organization has always been innovative, in every field or industry they operate in. according to SCN (2020), Coles has unveiled its most innovative supermarket in Melbourne. The organization had tried to provide as much value as possible to its loyal as well as potential customers. In the new supermarket, Cole has introduced a living herb wall, the largest range of vegetables throughout Australia for people who avoid meat products, some products that are completely manufactured for the pets and to top it off a deconstructed meal kit station, which can help people to create delicious dinner in just thirty minutes. According to Steve Cain CEO of Coles Australia, this particular store was just inaugurated so that the local people's needs can be fulfilled.

These were some of the ways through which the organization uses its value chain to implement its business-level strategy of the organization. In addition to this, the above provides a clear view that the organization, keeps its customer in mind while taking any decision. The organization is aware that the business-level strategy can only succeed if the organization can identify and fulfill the needs of its consumer.

Competitive Action

Competitive action refers to tactical or strategic moves that an organization makes to enjoy a competitive advantage. Competitive advantage is common when the rival firm tries to attack the organization. According to Scanlan (2020), Coles Australia has introduced Best Buys to take down Aldi's weekly special buys. According to the medial this, particular move was deliberate so that the giants can overpower their rivals. The similarities of the product can easily be distinguished.

Threat Analysis

Threat analysis refers to a scenario where the organization tries to identify all the factors that may or may not hinder the operations of the organization. There are chances that to get an edge over its competitors the organization might not be able to assess whether they have the capability or not to counter the actions of their rivals. Also, the organization might not be able to completely neutralize its competitor’s product which might lead to losing the loyal consumers of the organization.

Motivation and Capability to Respond

The organization should provide itself with a reason so that it can motivate and generate the capability to respond to a rival's attack. One of the motivations that could drive an organization can be huge profits that can be generated. In this particular case, it can be the organization's desire to be the market leader in the retail industry in Australia. This particular benchmark will surely motivate the organization to outperform its rival.

Types of Competitive Action

Six types of competitive action can be taken up by the organization. Every competitive action has an impact on the firm's position in the market place. The six types of competitive action are marketing, pricing, the introduction of a new product, service provided by the organization, and the different marketing signals (Tian, Zhao & Liu, 2015). Even if one of the competitive actions is taken misunderstood, the organization can lose its position in the market.

Likelihood of Competitive Reaction

According to researchers, three major factors determine the possibility of an organization responding to its competitor, namely, motivation, capability, and awareness. The three products are liable to determine the amount of tension that stands between the two rival firms.

Conclusion on Coles Australia

This particular report was based on Coles Australia. According to the report, Coles Australia focuses on cost leadership strategy, this particular strategy was easily incorporated in the operations of the organizations as the company possessed a very efficient supply chain. apart from cost leadership, the organization was also capable of implementing the differentiation strategy, which was assisted by the brand image of the organization.

In this report, it was identified that the organization wanted to expand its operations which led them to follow the diversification strategy. It was observed that the organization was slowly trying to widen its horizon. As it has started to partner itself with other business houses. Also, the organization will not have a problem even if it tries to operate oversees, as the organization was able to build its brand image with the help of customer satisfaction, and people outside Australia are aware of the organization.

The organization mostly worked for the betterment of society and made all its decision keeping in mind its customers. The organization was so concerned about its customer's liking and preferences that they opened up a customized store for the locals.

However, this can become problematic for an organization if thinking of going overseas because it is not sure whether or not the customer can get the talent they require. Cultural differences can also play a major role while operating oversees.

Another point that was identified in the report was that Coles was ready for all the actions that might be taken up by its rival organization to disrupt the vision statement of the organization.

References for Coles Australia

Coles Group. (2019). Annual Report. Retrieved from. https://www.colesgroup.com.au/FormBuilder/_Resource/_module/ir5sKeTxxEOndzdh00hWJw/file/Coles_Annual_Report_2019.pdf

Coles Supply Standard. (2019). Objective of this Document. Retrieved from. https://www.supplierportal.coles.com.au/wps/wcm/connect/faeb2096-2014-4218-86b6-c021d8b67d67/Coles+Supply+Standards_2019+update+27.05.19.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-faeb2096-2014-4218-86b6-c021d8b67d67-n13UiIB

Curry, E. (2016). The big data value chain: definitions, concepts, and theoretical approaches. In New horizons for a data-driven economy (pp. 29-37). Springer, Cham.

Elbanna, S., Andrews, R., & Pollanen, R. (2016). Strategic planning and implementation success in public service organizations: Evidence from Canada. Public Management Review18(7), 1017-1042.

Kim, J., Lee, C. Y., & Cho, Y. (2016). Technological diversification, core-technology competence, and firm growth. Research Policy45(1), 113-124.

Latif, W. B., Islam, M. A., & Mohamad, M. B. (2015). Antecedents of brand image: A conceptual model. Australian Journal of Business and Economic Studies1(1), 95-100.

Li, B., & Chen, S. (2019). Corporate-level strategy and firm performance: evidence from China. Chinese Management Studies.

Scanlan. R. (2020). Coles launches fortnightly ‘Best Buys’ deals to rival Aldi’s weekly ‘Special Buys’. Retrieved from. news.com.au/lifestyle/food/eat/coles-launches-fortnightly-best-buys-deals-to-rival-aldis-weekly-special-buys/news-story/38791cc3e43b7acc40b549fa7524e192

SCN. (2020). Coles opens its most innovative, tailor made supermarket in Melbourne. Retrieved from. https://www.shoppingcentrenews.com.au/shopping-centre-news/industry-news/coles-opens-its-most-innovative-tailor-made-supermarket-in-melbourne/

Seifzadeh, P., & Rowe, W. G. (2019). The role of corporate controls and business-level strategy in business unit performance. Journal of Strategy and Management.

Semuel, H., Siagian, H., & Octavia, S. (2017). The effect of leadership and innovation on differentiation strategy and company performance. Procedia-Social and Behavioral Sciences237, 1152-1159.

Thatte, A. A., Rao, S. S., & Ragu-Nathan, T. S. (2013). Impact of SCM practices of a firm on supply chain responsiveness and competitive advantage of a firm. Journal of Applied Business Research (JABR)29(2), 499-530.

Tian, H., Zhao, J., & Liu, Y. (2015). The Study of Typology of Competitive Actions in Digital Environment: An Empirical Investigation of Mobile Instant Messaging. In PACIS (p. 218).

Wang, Y. (2016). Australia-China relations post 1949: Sixty years of trade and politics. Routledge.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Management Assignment Help

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