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Australian Retail Market (coles)

Based on the feedback received on your Situation Analysis Report you will now proceed to a Final Strategic Recommendation for your chosen company in which you will be required to detail not only what your strategic recommendations are but also what specific steps at the business and corporate level are necessary to implement those strategies as well as how you will monitor and control the performance of the company as it goes forward.

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Corporate level strategy of any organization considers an action to increase the competitive advantage by selecting and running the mix of the businesses while competing with several industries or other manufactured goods markets. On the other hand, business level strategy is also considered as the detailed actions to provide values of the customers and to add the competitive advantage by developing the competencies in the precise product or service markets. The report discusses about the strategic recommendations related to the corporate and business level strategies of Coles, which is referred as the most popular supermarket chain in Australia. The company has already employed almost 101, 000 team members in their super market stores. The company has gained almost $39, 217 billion of profits in 2017 and $39, 388 billion in 2018. The revenue is constantly improving in recent years. However, the operating income of the organization has decreased in 2018 to 1.500 billion. The aim of the research is to recommend the strategies of Coles to monitor and control the performance of the business to move forward globally. The company has already done the situation analysis of Coles by using the porter's five forces and the PESTLE analysis. It has been observed that the competitive environment of the industry mainly endangers the company. In addition, for the advanced source of revenue, consumers can purchase the lesser costly products and can consume the healthy products. For the socio-economic differences in Australia, the firm comprises low revenues in the socio economic privileged areas.

Business Strategy:

The company mainly focuses on selling and delivering fresh and quality products to the customers through their well developed and maintained supply chain. It identifies the demand of the customers, which is providing the great quality product in the affordable price. The chosen retail super market chain has improving consistently its supply chain and they have also adopted the developed supply chain model by the well maintained distribution centre and the developed transportation system (Wheelen, Hunger, Hoffman & Bamford, 2017).

The retail stores are designed to enhance the productivity of the stores. The firm also invested to introduce and develop the technology in the super market stores and this has made the shopping experience of the customers better. In addition, this has helped to make the decision making process very fast to solve the problems of the customers. The business level strategy of Coles is to set up the differentiation and the cost leadership strategy of the company. To differentiate the products with their competitors, the company mainly uses their promotional strategy and their brand image (Saebi & Foss, 2015). To maintain the cost leadership of the organization, the chosen firm uses the cost minimizing strategy with the help of their developed supply chain. By using these strategies, the company offers value to their existing and potential customers at the lowest possible costs. These activities are helpful to gain the competitive advantage of the firm over their competitors. Moreover, the company also uses the six-point plan to achieve the business objectives to deliver the quality products at the lower costs, quality services to the customers by establishing the trust in the market (Aithal, 2016). 

Corporate Strategy:

The corporate level strategy of Coles is to be the organizer in the retail industry in Australia. The company focuses on identifying the services and investing in the services that can provide4 greater values to the customers. To become a market head in the retail industry the company follows the innovation and diversification strategy. The company understands the demand of the customers and based on this, the company introduces the innovative and diverse products and services in the industry. This strategy helps the company to attain the sustainable position in the market. This strategy helps to gain more opportunities for the growth in the organization. However, the company is facing challenges regarding the identification of the changing consumer demand and the changes in their tastes for the cultural influences (Olson, Slater, Hult & Olson, 2018). This can create high threats for the retailer market and it restricts the company to gain the competitive advantage. The analysis of the company also depicts that the profit margin of the company is under huge pressure because of the marketing and the pricing competition in the retail market of Australia. The company also faces huge challenges from the local and international retailers. As the number of retailers is increasing, the new entrants are becoming the threat to Coles. The Australian retail sectors are offering the alternative and innovative products and this is increasing the competition for the chosen supermarket chain (Das et al. 2015). The online retailers are getting advantages of the attractive pricing strategies over the company. As a result, the company is also facing the logical and technological challenges.


Recommendations related to the business level strategies:

To concentrate on the relationship between the consumers and the human resources by escalating, the guidance related to the customer relationship management and the customer services:

The competitors of Coles and the other companies related to this industry are mainly facing on the technological development and find some different ways to interact with the customers. However, Coles should focus on the important factor, which is human resource to gain the profitability, and to develop the brand image in the industry (Lotayif, 2016). By escalating the capability to speak effectively with the customers and developing the human relationship, this can able the company to differentiate with their competitors and increase the competitive advantage on its main competitors, Woolworths. The recommendation could help the chosen company to contact to multiple departments of the market (Bocken, de Pauw, Bakker & van der Grinten, 2016). The human resource manager should be effective enough to manage the conflicts among the employees. It can create a optimistic influence on the brand image and the overall performance including the marketplace share and the income margins. Moreover, the firm can easily offer the excellent and innovative customer services to maximize the number of loyal customers in the firm (Journeault, 2016). The recommendation also helps to reach to every market segments; therefore, they can control and monitor the performances of the business in the market and in the retail industry.

Specific technological improvements such as QR code should be placed on the products to gather various information:

Coles could easily place the bar codes and QR codes on the products on their products to allow the customers to compare their pricing with other competitors. This can allow the firm to identify their position in the market. This allows the supermarket chain to exhibit whether they are competitive or not and they bring the competitive advantage to the supermarket chain. It can also give confidence the brand to show that this firm is developing and improving the shopping experiences for the potential and new customers (Borden & Suggs, 2019). Moreover, it will also allow the customers to identify the fast, easy and up to date data about the dietary value of the foodstuffs or any other applicable data such as the existence of any allergic substances and the list of ingredients. This can be helpful to compare the products and help the customers to choose their products based on their needs. In addition, this information could be kept on the mobile phone application of the organization and the existing users can utilize this for their references (Hernández-Perlines, Moreno-García & Yañez-Araque, 2016). This can increase the diverse use of the mobile app of the customers. This can also improve the online promotion of the company and can help to gain profitability in the retail industry. This recommendation can also allow the brand to differentiate the services and products based on different dimensions. This can be considered as the important driver of the uniqueness of the product. For Coles, it would provide extra service, which is not available from other competitors in the retail industry.

Development of the childcare centre in the supermarket to improve the shopping experiences:

The company could initiate some childcare centre related through developing partnership with the childcare providers, which can build and develop the trust of the customers towards the supermarket. This trust and knowledge can be developed by taking the help of their experienced and trusted employees. Therefore, Coles has been recommended to implement and develop a childcare centre in the supermarkets. This service can be available for the customers of Coles in between the operating hours of super market and if this can meet the demand of the customers, this could be highly beneficial. This service can also encourage the customers to choose this supermarket chain over their competitors for the shopping because it provides some different services for the customers. In addition, it can be aligned with the business level strategies of the supermarket, which simplifies the customer shopping experiences by providing them important and creative services to choose Coles for their shopping destination.

To offer store innovative food products to the canteens of other organizations to diversify their services for customers:

This recommendation can be considered as the positive and better way for Coles to improve further. If the company gets the contracts to serve their innovative food products to the employees of different organizations daily, the company can easily reach the customers by reducing the delivery items. However, the company needs to deliver the high quality products within time. In recent days, the companies have very less times allocated for lunch , as a result, the customers are looking for the healthy and hygienic food products that the fast foods cannot provide. The customers of the companies spend their money to purchase the health food products from different stores. By understanding the canteens, the supermarket can be able to identify the needs of the employees and based on this, they can innovative and deliver the healthy meals daily. The retailers have to provide some staffs t6o prepare the meals and manage the canteens of the organizations. It can easily manage the time of the employees and the people can come to the canteen to purchase the healthy and fresh food products.

To provide the quality services to minimize the waste:

The company can deliver some products to the canteens and they can open the 24*7 drives for serving the readymade products for sale. This can help the company to minimize the waste of their prepared food and they can attract some new customers. The customers can be attracted to this supermarket because the food products can be available whole way.

Recommendations for the corporate level strategies:

To share out every day products to the organization for the dispossessed community:

In the Australian retail market, it is already considered as the most trusted supermarket chain. Generally, other supermarkets throw their extra food products such as the unsold products or the extra products. This wastage of food is mainly considered as the issue that has the negative impact on the economics and the eco system. The company can contact with the NGO through which they can provide the food products to the needy and homeless people (Reynolds & Yetton, 2015). This long-term recommendation can help the company to gain the competitive advantage and it develops the stronger reputation and gets the customers loyalty and value. This can helps Coles to develop their brand image through the improvement in the actual social and economic conditions.

To develop advertising campaigns by promoting the ethical behaviors, animal protection and the moral development:

The chosen super market chain is recommended to expand the marketing campaigns to explain the employees that the consumers have specific roles and that should be considered. The company should bring some innovation for the environmental solutions that can generate business opportunities and can meet the demands of the customers (Winkler, Etter & Castelló, 2017). Moreover, Coles can be able to enhance the quality of the products, they could easily attain the goal of the sustainable development, and the environmental innovation can improve the productivity by reducing the pollution. Along with that, it can be said that, the recommendation can be considered as the ethical and financial improvement that can differentiate Coles from their competitors.

To expand abroad to enhance the expansion of the company:

The company should expand globally to gain competitive advantage from the foreign customers. This growth could help Coles to generate the strong relation and it could develop the brand awareness by entering in the international markets (Kazanjian, Drazin & Glynn, 2017). The company can easily understand the customers need, cultures and social norms by investing more time and money. In addition, this expansion can create better opportunity for Coles to strengthen their market position, to improve their market share and to boost their capabilities.

To develop the collaboration with some ecological organizations to improve brand image of Coles:

As this is a highest supermarket chain in the health food sector, it can create an alliance with Australian energy Provider Company that can help Coles to respond to the demands of customers and to improve the brand image (Jenkins & Williamson, 2015). They can also provide a discount at the end of the month based on the buying of environment friendly products and services in the supermarkets. Moreover, the company can create a company with the energy provider to increase the competitive advantage, improve the brand image over their competitors, increase the marketplace share and improve their sales.


This report provides various recommendations that have been proposed to Coles in their differentiation with the competitors. These recommendations can easily develop the corporate level and business level strategies. Within the retail industry in Australia, the different recommendations in the industry can remain innovative to differentiate and to increase the competitive advantage. This can help to control and monitor the performance of the business. In fact, the supermarket chain can offer the additional services leading on the long run to build customer loyalty and values. By adopting the recommendation in the business strategies, Coles can strengthen its brand image through perceiving value and developing the small gaps with the competitors.


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