1. Research Report
1.1 The Issue of Competition/Overseas Brands Entering the Australian Market
The increasing number of overseas brands entering the Australian market has created wider spread competition among businesses as well as changing the way businesses operate in order to maintain and protect their profits. While competition is necessary in any business environment, too much poses a threat to brands already in the market, whether they have a large or small share. The operations of businesses shift due to the increase in competition as many businesses are forced to make these changes, whether they are structural, financial or marketing related, in order to remain competitive within the market.
The impact of overseas brands entering …show more content…
However, both Woolworths and Coles have sought to protect their duopoly nature within the market; they have tried various tactics over time to protect their market share, profits, and reputation. The real threat Aldi poses besides its increased competition it’s the alternate supermarket option it provides customers with, as it is known for giving consumers better value for money, lower prices, and different choices that weren’t previously available. While Aldi also creates further competition for both companies, it emphasis the similarities between Woolworths and Coles and creates a further need for both companies to remain competitive not only in the whole market but against each other as …show more content…
In addition to this, they have also used the strategy of “land banking,” which is purchasing real estate sites that would suit Aldi and then leaving them vacant in order to keep Adi out of the area, (Bruin, 2014). The aim of these adaptation strategies is to stunt the continuous growth of Aldi, who are now hoping to expand their stores further into Southern and Western
1.1 The Issue of Competition/Overseas Brands Entering the Australian Market
The increasing number of overseas brands entering the Australian market has created wider spread competition among businesses as well as changing the way businesses operate in order to maintain and protect their profits. While competition is necessary in any business environment, too much poses a threat to brands already in the market, whether they have a large or small share. The operations of businesses shift due to the increase in competition as many businesses are forced to make these changes, whether they are structural, financial or marketing related, in order to remain competitive within the market.
The impact of overseas brands entering …show more content…
However, both Woolworths and Coles have sought to protect their duopoly nature within the market; they have tried various tactics over time to protect their market share, profits, and reputation. The real threat Aldi poses besides its increased competition it’s the alternate supermarket option it provides customers with, as it is known for giving consumers better value for money, lower prices, and different choices that weren’t previously available. While Aldi also creates further competition for both companies, it emphasis the similarities between Woolworths and Coles and creates a further need for both companies to remain competitive not only in the whole market but against each other as …show more content…
In addition to this, they have also used the strategy of “land banking,” which is purchasing real estate sites that would suit Aldi and then leaving them vacant in order to keep Adi out of the area, (Bruin, 2014). The aim of these adaptation strategies is to stunt the continuous growth of Aldi, who are now hoping to expand their stores further into Southern and Western