Fundamental Concepts, Issues And Benefits Of Information Systems And Their Relation To Business Challenges And Organizational Responses

Organization

Aldi

Coles

Woolworths

Inbound Logistics

The company produces its own product under its own brand name to sell them in their supermarket chain. It saves them cost and provide them a prolong competitive advantage

Coles sells the products of a number of popular brands in their stores.

The company has its own distribution centers that enables them to take advantage to procure huge quantity and reduce price of the products

Operations

This reflects the product lifecycle. Aldi produces and serves premium quality products to their customers that ensure their continuous visits. The company is considered to be in the growth stage as they have made their position in the market.

Reduced energy use to control the emission. It helps them to address the CSR of the company.

Woolworths have tie up with the local farmers and producers that enables them to provide fresh products to their customers

Outbound Logistics

It communicates the process of making the products and services available in the market. Aldi uses their own transport chain to circulate their products in the market.

Uses smart routing system in their domestic and international transportation to both address the accessibility of the products and low energy consumption.

Uses quality management system to ensure product quality and freshness of products

Marketing and Sales

The company has chosen a cost saving marketing and sales strategy. They follow the marketing strategy that allows them to provide low cost products to their customers

Company is an integrated agency with deep route in public relation, marketing communication and brand development.

Woolworths have a strong marketing team and spend a considerable amount for high brand awareness

Service

The company provides a quality service in all their stores in Australia.

The company ensures the quality service via online free delivery. Customers are promised for the replace and refund if company fails to provide quality product.

Refund policy for the unsatisfied products and service is what makes the company different from others.

Organizations

Aldi

Coles

Woolworths

Competitive Rivalry

It is high in case of Aldi as every supermarkets sells almost the same products. However, Aldi sells their own products that helps them to keep their price low that in turn gives them some advantage in the market. Aldi’s primary rivals in Australian market are Woolworths, Coles, Wall-Mart etc.

Coles faces primary challenge from Woolworths, Aldi, Tesco, ASDA etc. It is due to the nature of the industry is quite similar to each other. However, coles sells a wide range of international products that makes them unique and reduces some amount of challenge in the market

Competitive rivalry of Woolworths is high in the Australian supermarket industry. Major challenges faced by the company is from Aldi, Coles and Wall-Mart

Threat of New Entrants

Starting a supermarket requires a huge amount of investment, which makes it hard for setting up the business. Moreover, the Australian supermarket industry is already packed with some big names that prevents new entrants. Hence, this threat is low in case of Aldi

Threat of new entrants in low. Australian market supermarket industry is tight for new entrepreneur to enter the industry

Threat of new entrants is low as the Australian supermarket industry is already compact with some of the big names.

Bargaining Power of the Suppliers

Aldi grows their own products for selling them in their stores. Moreover, the industry is flooding with suppliers that reduces the bargaining power of the suppliers.

Bargaining power of the supplier is moderate in case of Coles as there are other organizations operating in the same territory. However, the number of suppliers reduces the threat

Woolworths does not produce their won product that is a disadvantage compared to Aldi. However, there are a number of suppliers ready to supply their product to these industry that reduced the power of the supplier

Bargaining Power of the Buyer

Bargaining power of the buyer is significantly high in Australian supermarket industry as they have a multiple choices. Thus it creates a high tension among the competitors regarding the price and the profit margin

Bargaining power of Coles can be considered as moderate as they a wide range of international products along with the local ones. However, the products are similar to other organizations which increases the buyer’s bargaining power

Power of the buyer is considerably high as there are a number of companies operating in the Australia in close proximity

Threat of Substitute

The products sold in Aldi’s stores is nothing unique. Customers can get every item in the other store that are located in close proximity. It eventually increase the threat of substitutes.

Threat of substitutes is high as there are a number of organization operating in the in the area with similar products.

Threat of substitute is high due to the availability of the products in other supermarket chains.

Organizations

Aldi

Coles

Woolworth

Demographic profile

The demographic profile of Aldi includes more female customers compared to the male customers. However, in the case of Aldi, customers from the upper age groups of 55 to more than 65 are the main contributing shoppers. Thus, people from upper age groups are more opting for Aldi. In the case of Aldi, customers from the Caucasian ethnic groups constitute the major portion (infoscout.co 2017).

The demographic profile for Coles include majority of the female buyers compared to the male customers. The maximum customers for them are from the age group of 25 to 44. However, customers from other and diverse age groups are not far behind and thus, Coles is having customers from diverse customers from all age groups. Customers from Coles are mainly from the Caucasian ethinc groups followed by African-American and Hispanic (infoscout.co 2017).

In the case of Woolsworth also, majority of the buyers are the female. Major portion of the buyers for them are the grocery buyers. However, in terms of the age group for Woolworths, majority of the buyers are from the middle age groups.

Market size

In the Australian market, Aldi is having 6 percent of total market share.

Coles is having the second most market share only after Woolworths. They are having 36 percent of total market share.

In terms of the market share, Woolworths is having the market leadership status with having 43 percent of total market.

Competitor analysis

Coles and Woolworths are the top two competitors for Aldi. Other competitors such as IGA are also competing in the market. However, majority of the competitors for Aldi are the third party retailers. They retail good manufactured by other organizations. However, Aldi sells their own brands.

Woolworths is the key competitor for Coles with having the market leadership status. However, smaller competitors such as Aldi, and IGA are also competing with them.

Coles is the key competitor for them with having marginal difference in the market share from them.

Profitability

In the recent months, profitability of Aldi took a hit by reduction in the profit margin to €255 million. However, they are having gross profitability in their business operation (BBC News 2017).

On the other hand, profitability of Coles increased by 1.2 percent. As of 2015, they have made profit worth of $1.39 billion (news.com.au, 2016).

As of 2014, net profit of Woolworths stands at $2.45 billion with an increase in 6.1 percent compared to the last year (Powell 2017).