Independent Grocers of Australia or IGA is one of the leaders in Australian chain of Supermarkets .The Independent Grocers of Australia or IGA is headquartered in Canning Vale, which is the suburb of Perth, Western Australia (IGA Supermarkets. 2018).The products catered by IGA are groceries and general products .It is presently the fourth largest supermarket chain in Australia. It is the subsidiary and Australian branch of American company Independent Grocers Association. The report discusses the various business strategies of Independent Grocers of Australia or IGA. The report details about the business strategies undertaken by IGA in order to meet their goals and objectives.
Importance of Business Strategy
The concept of Business Strategy in an organization can be stated as the organization’s high-level plan that is aimed to reach particular business objectives (Bentley , Omer and Sharp 2013). The business strategies can be deemed as a success when it leads to growth in business provides a strong competitive position and also ensures a strong financial position. When the business strategy fails, the organization may chalk out new business approach or strategy or may decide to move out of the business.
The strategies of an organization are the reflection of the company’s strength, weakness, resources and opportunities .They also reflect the competitors of the firm in the market (Ozkaya et al. 2015). The strategies are formulated primarily to meet the goals and objectives of the organization, which includes sustaining and earning in the profits.
A Brief Overview
The Supermarkets in Australia have a major role to play in the Australian food marketing industry. The Australian Supermarkets have gone through various changes over the last four decades. The retailers have played a significant role in the food distribution chain of Australia (Manzini and Accorsi 2013). The major leaders of super markets in Australia are Woolworths, Coles, Aldi ,IGA and Franklin (Knox 2015). Woolworths have been the major and top supermarket retailer for more than a decade in Australia .
Coles is the second best supermarket retailer after Woolworths, it is also thriving in Australian market for more than a decade. The Independent Grocers of Australia or IGA is one of the leaders in Australian supermarket chains. However, the market share of IGA in Australian supermarket is far behind that of Woolworths, Coles and Aldi, they are still growing and it is expected to reach greater heights in future. It has the capabilities and prowess to be the leaders in the supermarket chain of Australia.
Business Strategy of IGA Supermarkets
In order to become the leaders and to thrive in the Australian super markets, IGA follows certain business strategies for achieving their goals. Some of the business strategies of IGA are as follows:
Generic or General Strategies
The general or the generic strategies of IGA or Independent Grocers of Australia include the growth, globalization and retrenchment.
Competitive Strategies
Competitive strategies are very important for any organization in any sector or industry of operations (Madsen and Walker 2015).The competitive strategies includes the set of plans that are responsible for giving them an edge over the competitors or rivals in the market. Competitive strategies involves following a approach of performing things that are better than the competitors in the market .But there are some factors that are important and plays a significant role in ensuring a proper competitive strategies . The factors include resources and infrastructure. The competitive firm or organization should not just follow or copy the business idea of rival companies present in the industry .
The competitive strategies should be robust, organized and efficient enough to out-compete the rival firms and give a competitive edge over the rival companies (Cusumano, Kahl and Suarez 2015). There are primarily two ways of being competitive in the market .First by offering the products at a price which is lower than the competitors in the market .This strategy is followed when the firm or companies are the leaders in the market and they benefit from the economies which they acquire from sales .
The second strategy, which is followed, is the one, which involve differentiation of products from the products of the rivals. Since this strategy, brings uniqueness in the product as the firm not any other company in the market offers those products, the price of the products can be priced high at the desired rate only provides them.
In the supermarket sector of Australia, the retail giants like Woolworths and Coles dominate it. They have been thriving in the Australian supermarket industry over decades. Thus, it is quite evident that they have been enjoying a significant amount of market share for many years .Thus, to out-compete them Independent Grocers of Australia or IGA should undertake strong competitive strategies to become the leaders in supermarkets of Australia. The competitive strategies undertaken by Independent Grocers of Australia (IGA) are as follows:
Conclusion
From the report on analysis of business strategies of IGA Supermarkets, it can be concluded that the supermarket giants like Coles, Woolworths and Aldi dominate the Supermarket industry of Australia. The IGA follows some robust and organized business strategies in order to compete with the leaders in supermarkets who enjoys a significant market value in Australia .The Independent Grocers of Australia should implement their business strategies wisely. They should also improve on some business strategies like acquisition and globalization strategies to come out as the leading Supermarket in Australia and also become a reliable brand in other parts of the world as well.
References
Aithal, P.S., 2015. Concept of Ideal Business & Its Realization Using E-Business Model.
Bentley, K.A., Omer, T.C. and Sharp, N.Y., 2013. Business strategy, financial reporting irregularities, and audit effort. Contemporary Accounting Research, 30(2), pp.780-817.
Bremmer, I., 2014. The new rules of globalization. Harvard Business Review, 92(1), pp.103-107.
Cusumano, M.A., Kahl, S.J. and Suarez, F.F., 2015. Services, industry evolution, and the competitive strategies of product firms. Strategic management journal, 36(4), pp.559-575.
IGA Supermarkets. (2018). About IGA | IGA Supermarkets.
Knox, M., 2015. Supermarket monsters: The price of Coles and Woolworths’ dominance (Vol. 6). Black Inc..
Madsen, T.L. and Walker, G., 2015. Modern competitive strategy. McGraw Hill.
Manzini, R. and Accorsi, R., 2013. The new conceptual framework for food supply chain assessment. Journal of food engineering, 115(2), pp.251-263.
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