How Does Cole Compete In A Global Environment
In 2013, Coles entered the world’s Top 20 supermarket chains according to a study performed by the consulting firm “Deloitte”, the 2013 Global Powers of Retailing Report [7]. It climbed from 21 to 18th, and is increasing steadily.
Thus it is clear that Coles has been succeeding in a global environment. Some of the tactics that its managers have utilized to compete in a global environment will be discussed here.
Even though we discuss Coles in a global environment, when it operates within its Australian context its primary competitor is Woolworths. The principal competitors within this industry (by market share) are Woolworths Ltd (40.4%), Wesfarmers Limited representing Coles Supermarkets (30.3%), Metcash Limited representing IGA Supermarkets (8.6%) and ALDI Stores Supermarkets (7.4%); other stores contribute 13.3% [8].
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Strings of supermarket acquisitions as a form of market competition began in the 1970s and have since only intensified market concentration. The biggest purchases include Woolworths acquiring Safeway (1985) and Coles purchasing Bi-Lo (1987) [9]. In 2011 Metcash Limited acquired the Franklins grocery brand [10].
In this age of internet shopping, all competition is global. Coles utilises Price-Based and non-Price Competition. Woolworths and Coles competing against each other as a duopoly buck the international trend of oligopolies competing through diversification and instead compete on the basis of price [8]. In the words of Monash University’s King and Samuel, Woolworths and
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