Coles Supermarket Analysis: SWOT and Porter's Five

1. Executive Summary

This research work deals with analyzing and developing information strategies by an ICT consulting firm for their client. We this group had select Coles Supermarket as our client to which we will present an information strategies. The research will analyse the business model and use it for the development of the strategy. In doing this the organization was evaluated with the SWOT (Strength, Weakness, Opportunity and threat) analysis. The research uses two strategic analysis methods( Five force model & Balanced Score Card Model) to propound some very useful recommendation which was derive from the analysis of the strength, weakness, opportunities and threat of the supermarket. The research tries as much as possible to highlight the  area where attention should be higher in the process of implementing the developed strategies and it outline the possible challenges that can be faced in the process of implementation and as well make the useful suggestion of how to overcome them and finally it outline the possible outcome of such implementation.

Table of Contents

1. Executive Summary…………………………………………………………….2
2. Background Information………………………………………………………..3
   1. Business Model & Description…………………………………………….4
3. Strategic Analysis………………………………………………………………7
   1. Five Force Model……………………………………………………………7
   2.  Balanced Score Card……………………………………………………....12
   3. Integrated Discussion of Strategic Analysis Result………………………..15
4. Strategy Formulation………………………………………………………….16
   1. Recommendation 1………………………………………………………..16
   2. Recommendation 2………………………………………………………..17
   3. Recommendation 3……………………………………………………….18
   4. Recommendation 4……………………………………………………….19
   5. Recommendation 5 ………………………………………………………19
5. Strategy Implementation………………………………………………………20
6. Expected Outcome…………………………………………………………….21
7. Conclusion…………………………………………………………………….21
8. References……………………………………………………………………..22

2. Background Information

Coles Supermarkets Australia Pty Ltd, trading as Coles, is an Australian supermarket chain owned by Wesfarmers. It was founded in 1914 by George Coles in Collingwood, Melbourne, and Coles operates Seven hundred and seventy- six (776) stores throughout Australia, including several now re-branded BI-LO Supermarkets. Coles has over hundred thousand (100,000) employeesand, together with rival Woolworths, accounts for more than 80 per cent of the Australian market. George James (G. J.) Coles was able to learn the retail trade working for his father's business 'Coles Store' between 1910 and 1913. (The store continued operating as "The Original Coles" at Wilmot, which was destroyed in fire outbreak in 24^th of January 2014 in Tasmania.

It was then Coles itself was established when G. J. Coles got the 'Coles Variety Store' opened on 9 April 1914 on Smith Street in the Melbourne, Victoria suburb of Collingwood. Encouraged development happened and Coles' enthusiasm for sustenance and food retailing was prodded in 1958 when it gained 54 John Connell Dickins supermarkets.  In 1960, in New South Wales Beilby’s chain was acquired in South Australia in 1959 and 265 Matthews Thompson grocery stores. In 1960, the main/first grocery store (doing their business under the Dickens name) was opened in the Melbourne suburb Balwyn North, at the edge of Burke and Doncaster Roads where a modernized adaptation keeps on working. Later in the year 1973, Coles has officially settled supermarkets in all Australian most capital urban communities and immediately from 1962, its general stores were marked Coles New World with going with rocket symbolism.

In 1991, the supermarket was rebranded Coles Supermarkets and since 1998, simply as Coles. In 2007 August, There was a plan to restructure of Coles group following its anticipated takeover by Wesfarmers foreshadowed, it expressed that one of three arranged divisions would involve general stores, alcohol and comfort stores. So, in February 2008, UK retailer Ian McLeod was delegated to overseeing executive of Coles Supermarkets (Managing Director), notwithstanding liquor/alcohol, fuel and accommodation organizations. McLeod's was head of UK vehicle parts and cycle retailer Halfords and gotten general supermarket experience involvement with Asda and Wal-Mart.

In April 2014, Coles celebrated its 100th birthday celebration - that is an entire century committed to giving most Australia natives families the products they need for a happy, healthy home life, at costs they can bear. Founder GJ Coles created a store that would lower the costs of living for Australian families. This philosophy continues over 100 years later.

2.1. Business Model & Description

Coles utilizes high sophisticated technique, procedure,and strategies for managing its suppliers which confronted gigantic allegations from the suppliers. There have been different branding and promoting strategies received by the retail chain by transforming it trademarks and showing advertisements which were new an idea, creativity, and imagination. Supermarkets are an extraordinary case of various apparently comparative contenders that have marginally contrasting plans of the business model. At a full -scale level, they have solid similitudes, depending on volume, cost, and customer numbers to succeed, yet everybody who shops realize that Coles is not Woolworth, and obviously not Aldi. In addition, these markets have some regular fundamental unit from which something is developed

Generating Revenue

Basically, generating revenue is  the main purpose of the business and they generate revenue from different angles Coles Supermarkets generates revenue on both sides of the equation. Their customers buy products, paying at the checkout and they also generate revenue via the payment of their Suppliers “pay” for shelf space via a range of charges levied for every variable the retailers can dream up. High volume discounts, payment terms, promotional levies, preferred shelf positioning, promotional slots, access to sales information, and a host of others. Some are items for which suppliers receive an invoice; others are taken as discounts off the invoice price, increasingly applied automatically as a part of the trading term package (Downes, 2008).

They also pay attention over promotions of some leading schemes which can attract a huge consumer base e.g. discount coupons for fuel offer, flybuys loyalty program points, Apple for Students campaign to promote Apple computers and accessories, Sports for Schools etc. At Coles, employees live their values and uphold their way of working. The buyers and suppliers are made aware of the ethical policies, code of commitment and ways of working which are fair and caring (Collier, 2011)

Cost Management

Cole’s supermarkets have been working on a very low percentage margin relying on the volume to generate cash margins like fixed cost and cost of goods sold. Fixed costs are a critical piece of retailers total costs, comprised of the arrangement of the retail floor space, the coordination’s foundation, and staff. Supermarkets attack their fixed cost base forcefully utilizing their scale as transaction devices with landowners and logistics suppliers, while keeping an extremely generous extent of forefront retail staff as casuals instead of full staff so they can better adjust staff levels to match activity. The sorts of decisions retailers make are between high thickness mall areas and independent areas. There are costs advantages to every which are considered as a piece of their vital basic leadership. Also, the cost of goods sold and what's more, they correspondingly utilize their scale to deal with those costs descending. Strategies change between retailers; however, the center diversion is to expand their edges while keeping costs as low as conceivable to pull in the volume purchasers. This is an amazingly sensitive adjust.

Transaction Cost

Transaction costs are generally quite well covered up in many organizations, yet are truly critical in the case of Coles Supermarket and on account of a customer. Basically, because of the quantity of transaction they make. For instance, there is a cost to dealing with buying  the relationship with the supplier; yet the larger the supplier, the less is the total costs/unit of  the offer of dealing with that relationship. This has prompted a sensational decrease of the quantity of supplier grocery stores have in any classification in the course of the most recent 15 years or so a pattern additionally quickened by the inexorably regular system of constraining the quantity of exclusive brands in any classification substituting house-marked items, and lessening the quantity of connections to be overseen. This has made arranging rack space progressively hard, and as a result of the  shortage, expanding costly for suppliers, thus putting extraordinary weight on little suppliers.

Customer Service and relationships

The supermarket discovering that customers are sometimes discourage searching through the supermarket for their product based on the large content of their product, the supermarket put in place an online shopping method where the customer can search and order for their products. Cole’s supermarkets made good choice about their price, a very good strategy location and their service was strategically that made unique from other competitors in other to have much market share and high volume of profitability that will distinguish them from others.

Moreover, no retailer can be all in to customers want as far as market structure is concerned, because each other them will definitely make their choice of the "ideal" customer and market towards them, which is being supported by customer loyalty cards and promotional opportunities technology is delivering. The retailer uses some form of category management. The two major retailers have expansive promoting spending plans which they spend in a wide assortment of courses, over all channels of correspondence with clients and potential clients, and regularly in joint movement with their providers, which definitely, the providers wind up financing as an end-result of volume.

The littler the retailer, the less "mass market" they are, so the strategies have a tendency to contrast, albeit deliberately, discovering willing provider accomplices is a centre some portion of each retailers showcasing blend. Consumers generally want many options when they are in any supermarket, the more the better, in any category. Coles stores carry 12-20,000 Sku’s (Stock keeping unit) depending on the size and location of the store, a typical IGA might carry 8-10,000, Perhaps, the reflect of the demographic and cultural mix is being carried in any store by the Stock keeping unit, Every additional SKU (stock keeping unit) you put through the supply chain creates complexity and therefore creates cost. It included diversification of products, improvement of on-shelf availability of products, removal of product or service duplication, and strategies to enhance the experience of shopping of the customers. There was an innovative business combination of decreased price along with increasing cost absorption so as to deliver value to the customers. There were reinvigorating techniques for company’s logistics and merchandise.

Coles store matched up with the food requirements of Australia depending upon their culture and way of cooking. In Australia, the trend was to cook many foods from the scratch rather than using pre-packaged foods. So, Coles upheld the food practices by providing diversity and options in food items (Downes, 2008). For providing the services of promising store team members, Coles involved in retail Leaders program which was an innovative approach for training purposes. The customer’s needs are being met in a best way by locating and adjusting their inventory into the sales face because retailer monitors through some form of category management disciplines. The Coles make choice about how many brands and type to keep in stock, and where to put them on shelf with other goods that are related

Top of Form Strategic analysis

Strategic analysis or SWOT analysis is the basic tool for strategic business planning by identifying the strength, weakness, opportunity and threat. Thereby it is possible to compare an organization’s position relative to their competitor as well as organization environment. (Smallbusiness.chron.com, 2017).

3.1 Analysis 1-Five Force Model

Figure1: (Bing.com 2017)

Indeed, five force models is a framework for business strategy development by analyzing the level of completion within an industry. Here, this strategy analysis model can be applied in Cole’s super market (En.wikipedia.org.)

The threat of new Entrant:

High revenue and increased return value off-course attract new firms to come and join in existing, market. It ends in the much new entry to industry and it will result in a decline in overall profitability. It is true that, it is not hard to join the market. Anyone who has sufficient money and knows about the market could easily open a convenient store or continental grocery store easily. Government policy, price performance, proper capital investment etc facilitated new comers to join and grab a position in the market quickly. Hence it is important to learn about the new potential threat from a new opponent.

Challenges from other leading and existing super markets such as Woolworth and Aldi cannot be avoided. Because, the fundamental business model for all super market is same. The focus of all relies on increasing revenue, cost management, and customer satisfaction. At the same time, it is mandatory to monitor the arrival of new one and analyse their potential to compete with Coles. It could be analyzed easily with the provision of the technological support and money investment in new company. It is a known fact that, most of the new entry into market does not have a proper IT support and infrastructure except the EFTPOS, e-PAY machine and a POS system. Besides, apart from a console operator, they do not have a technical and business team for delivering good business plan and a new strategy.

At the same time, Coles have an expert technical and professional team for enchanting proper business value. In capital perceptive also, no new entry could not dominate over Coles. It is hard to put forward a good performance level at first even if they have proper money investment. It will off-course take a  long time to dominate. As Coles have a heritage and experience of more than 50 years, it is hard to rule over Coles. As in the case of cost advantage also, no new comers beat Coles because, they always try in selling good quality product with minimum cost (Bing.com, 2017)

Bargaining Power of Buyers or Customers

It is the sensitivity of customers towards price change in  the market there by it is possible to put a firm under pressure. In particular, it is known as “market of output”. Therefore it is critical to take some measures to reduce pressure level from customer. Here, Coles have their own approach to reduce stress. To be clear, they always try to deliver basic needs such as milk, bread, meats etc. at a lower cost. Besides, “special offer” is another way opted. Moreover, Coles always try in selling “Coles Home brand “product in addition with the variety of other worldwide brand. It is another business tactic of Coles to attract more customers by giving high -quality product with lower price (Bing.com, 2017)

Bargaining power of Supplier

It is also known as “Market of output”. In fact, a supplier is a raw material, component, labor and a service to a firm. At the same time, it will act as a source of power for a firm when there is a limited substitute for them. As in the case of Coles super market, they have many supplier for providing fresh fruits, vegetables, meet, and other grocery and non-grocery items. But, as there are plenty of fresh product suppliers and other distributor for all those products, there is no possibility for suppliers to hike the price on the product. Because, even one distributor increases the price, Coles will sustain with the support of other distributor.

At the same time, the supplier can bargain if they have many clients in industry. In that case, they have   the provision for increasing the price on each product. In this aspect Coles need to compromise with their supplier. Similarly, in technological aspect also Coles need to co-operate with supplier in order to beat other industry by upgrading payment system (Bing.com, 2017)

Threat of Substitute

The propensity of the customer to switch into another alternative product depends upon the price performance, ease of substitute, quality of the product, availability of substitute etc. For instance, tap water can be considered as a substitute for Coke and Pepsi. Increased marketing of spring water off-course will reduce the market of Coke and Pepsi. In this aspect, Coles can overcome with the market of spring water along with other soft drinks. Even if the customer chose tap water, they won’t lose their customer as they have big market of substitute product.

Similarly, Coles also selling some electronic product which is also available in  electronic shop at a cheaper rate. The price comparison off-course prompt customer to avoid Coles. But, we need to consider about the convenience that Coles offer. Coles have branches in every corner in Australia, there -by it provides a provision for customer to buy near to their location. Besides, even if fish, vegetable and meet are available outside Coles, quality and freshness of product need to be considered. In addition, Coles always try to keep loyalty toward their customer. Hence, Coles do not need to bother about the substitute product (En.wikipedia.org).

Industry Rivalry

Rivalry from the competitor the most important thing needs to consider. Woolworth and ALDI super marker ate the other two leading supermarket in Australia. As they have a similar market share and product arability, competition from these is really a challenge for Cole’s supermarket. In this context, price distribution, competitive advantage through innovation (IT supports), business strategy, new product and new service introduction need to be considered. As, Coles, Wooli and ALDI sell almost similar product, with the support of new product and new service or facility Coles can survive the rivalry.

For instance, now Coles support Indian stuff like Cereals and variety spices along with continental product to attract more Indian customer in their shop. Similarly, with FLYBUY card also they can catch more customers by providing more offers. To conclude, Coles have the capability, to sustain in industry for the  long duration of time. (En.wikipedia.org, 2017).

3.2 Strategy analysis 2: Balances Score Card

Figure:2 (Valuebasedmanagement.net, 2017)

The Balanced Score card is a “strategy performance management tool” that   enable manager, to monitor the activities its performance and consequences in an organization. It mainly focuses on 4 perceptive. These 4 perceptive are interrelated and the success of one is essential to the growth and performance of another.

Customer Perceptive

In this perceptive, focus is more on customer requirement and their satisfaction.  Because, customers are the most valuable asset for any organization. Even if the loss of one customer won’t make a considerable change, it will indirectly affect the business. In this aspect Coles, always tried in meeting their customer   fulfilment.  The intension of every customer to get high- quality product at minimum cost. Hence Coles always introduce “Coles Home-Brand” along with other brand. Thereby they can provide quality product with minimum cost.

Another approach is “special offer” especially on weekly, or some on festival time also helps customer to purchase competitively low price. Introduction of continental food items especially Indian and chines product another approach made by Coles to attract more customer. As the Indian and Chines community are increasing in Australia, meeting their requirement is critical to catch more customers in their store. By using FLYBY card it is possible to analyze the customer focus, and exact requirement. Hence, Coles also get an opportunity to present other product in their store. In addition, by providing FLYBY card Cols gave profit to the customer in future if card score exceeds a certain limit. This is another attractive feature of Coles in holding their customer. To be clear, Coles succeed in understanding their customer and meeting their requirement (Anon, 2017).

Financial Perceptive

In financial perceptive main focus is financial requirement and performance of a company for sustainable economic value. To be clear it aims in satisfying stakeholders to achieve more financial benefit. Coles always try in maintaining a strong relationship with their distributor for getting fresh and high -quality product with minimum cost and there -by increase revenue. Besides, by meeting the requitements of people from a different culture they attracted more customers in their store. As a result, it is possible to implement strategy for revenue growth and productivity.  Besides, the introduction of a new product (continental product), variety brand product are the part of increasing revenue by new source. At the same time, “home brand” item with a lower price, “special promotion” and “monthly offer” are the part of increasing customer profitability. In this way Coles could earn a good revenue growth and cash return (Anon,2017).  

Internal Business Process

In this perceptive Coles intended to put forward a well performance to satisfy distributor and attempt in grabbing the business goal of the company.  It is measured with effectiveness, and efficiency of business. And it results in high -quality product, lower cost production, and fast delivery which in-turn result in increased customer satisfaction and revenue growth. Another aspect is based on customer relationship management. Every organisation aim in increasing revenue by minimising the loss of their customer. In this perceptive Coles succeeded in building strong relation- ship with their customer by new service and product. At the same time continues monitoring about the current market and trend is important to analyze the new requirement and make new changes. In addition, analysis of competitor performance, their influence and position in current market is also inevitable to implement new plan and development (Anon,2017)

Learning and Growth

In this perceptive Coles concentrate on learning more about the current market, trend, a new requirement, a chance for new service and innovation. All these learning are for facing challenges in future. Because, joining to the current market is not a big task for any investors. Huge investment, vast knowledge about market off-course helps in entering to current market. But, Coles always try to sustain their position by new plan and approach.

Firstly, they work continuously to improve store network across their entire branch to make Shopping easier and simpler. Proper integration, empower the quality of service.

Second plan Of Coles Super market is “Food-To-Go” approach. Thereby it possible to showcase health Food. Such as pies, sandwich, donut, nuts in cheaper price.” Cole’s standalone online store Room” is another strategy adopted by Coles for customer convenience.

Moreover, store Interior also changed with new equipment for giving different look and atmosphere to Customer. To be clear, Coles have a well-planned strategy in order to reduce customer loss in Future and increasing their revenue by implementing new approach (Anon, 2017).

Integrated Discussion of Strategic Analysis Result Profit

In 2016, Coles’ full-year earnings rose 4.3 per cent to $1.86 billion with food and liquor sales increasing 5.1 per cent to $32.6 billion, and crucial comparable sales growth lifted 4.1 per cent. Coles has made some progress on some key issues:

Control operating Cost

Coles exists cost advantages, for example, they reduce logistics costs by introducing new technologies.And meanwhile, As Coles have more choices of advantage for the suppliers, They compare quality and price to multiple suppliers to maximize cost control.

Product price

As some of the more popular products, Coles maintain the advantages of similar products at the price by self-produced, which make the Coles avoid the threat of the substitutes.

IT supports

Coles through the data analyse and Mining to understand the purchase of all ages and the purchase of the way to maximize the increase in sales.

Customer perspective

Coles provides lots of Rewards plan for the customer,For example, “Flybuys ” incentive program can convert supermarkets, service stations and other related institutional spending points to Virgin Airlines’s points, and the customers are more relevant to our valued members through this personalized offer. Coles also regularly offer preferential products for customers. Such as daily supplies of sale off. These measures are benefited for enhancing the customer satisfction and improving customer experience, and meanwhile, it also can get some information how customer buy goods.

Competitive Strategy

Coles innovates business model to improve their competitiveness. As they have been adhering to the ‘cheap and then cheaper’ purpose, many well-known brands are replaced by coles’ own home brands. This will promote the increase of profit in the future and gradually widen the distance with the competitors. And on the other hand, Coles develops multi-business models, such as E-Commerce website, Mobile Applications, which can extend the competitive advantage.

4. Strategy Formulation

4.1. Recommendation 1

Controlling the network distribution of Coles Products: The functions of Coles supermarket are mainly under the three inbound logistics. By controlling the network will ensure the quality of products and also improves the efficiency of the distribution. Currently the network connections between different branches of Coles are poorly connected. A regular customer might always try to update his/her Flybuys card. This will help them to gain as much points as they purchase and get rewarded later.

Once their card is registered in the system, they get emails regarding the specials or sale products that are happening in the store for the items they have purchased only. In this way customers misses out the other offers that are going on in store.  Also, there can be updates given to the customer if any new products have come in the store. Since Australia is a multi cultural country people from different countries are there. Instead of visiting the store and checking out any products are available or has come in the store, it will be good if emails are dropped to them according to their nationality as it will be registered during the time of membership login (Smh.com.au, 2017).

4.2 Recommendation 2

Cost of operation. Since a supermarket like Coles is very huge, it cost of operation will also increase. Labor cost is one of the important concerns in the operation cost. All the business should know about the productivity that is obtained from the labors. Both should be equally produced because a retailer may pay the employees more amounts per hour. The customers in Australia along with the economy and communities are really glad regarding the low price in the products that is being invested by the Coles which was accomplished by Ian McLeod who is the managing director of Coles.

Coles and Woolworths are the top two leading competitors in the market of Australia. Coles is trying to expand their retail business in petrol, liquor, online shopping etc. Coles has carefully observed about a new technology in order cut down any types if thefts that are happening in the self-services. This technology came into existence when they realized that they are facing around $1.1 billion loss jus by the items that are stolen during the checkouts.

One of the news media said that there was a machine that was set up to particularly check the fruits and vegetables with their image and weight. They said this would be helping them to reduce the theft. But I feel that still there are many products that are stolen from the store without anybody’s notice. There are many reasons for the stealing of products by the customers. Around 57% of the customers would give up on some items, which are not able to scan. This can be because the item is not registered in the system. 51 % may think that they cant be caught easily. 47 % thinks that the system can be fooled easily. 32 % customers wont be having sufficient amount with them. Most of the items that people try to steal are fruits, vegetables, bakery, confectionary, and toiletries, which are the basic need of everyone.

Keeping a machine near the entrance that detects the items, which are not scanned by a customer, can reduce this. For this, the system should be re-developed again by implementing some action where an item once scanned by a customer should be cancelled in the back end. So the products that are not scanned can be identified easily. As it is said above that these problems happens in items that are sold loose. A packed product doesn’t face such issues. So there must be some way out made to cut down this issue (NewsComAu, 2017). There can be a solution for this problem as well. I feel if more staffs are kept near the self-service checkouts, then theft can be reduced especially during peak times. Even though there are many cameras inside and outside the store lack of monitoring is really affecting the production of Coles. In this way, there will be proper monitoring of the whole shop and will make the customers very cautious about stealing items.

4.3 Recommendation 3

Marketing Strategy It is highly recommended that a strong focus on the long term as well as short-term marketing strategies must be there for Coles along with the current strategies undergoing. This helps in the growth of Coles in future. A sharp concentration on the enhancement, refining and developing the interests among the area of giving advertisements regarding any sale happening or giving any type of promotions keeping in mind the end goal to make their vision reachable to the customers must be laid by Coles (Service, 2017). The main point from claiming Coles ought to a chance to be with representable caliber and the go about results, moreover the centering in their products which are healthy which easily move inside the store with their shoppers who need aid wellness monstrosity. This will be really helpful in increasing the sale in the business and keeping up the brand name Coles. This rapidly makes the customers to purchase more products (Anon, 2017).

4.4 Recommendation 4

Product Multiplication Now, we can see that only very less amount of products of different countries like India, Thailand, Korea etc. are available in Coles. Since there are different stores all over Australia, which are specifically for people from India, China, Korea, Thailand etc., Coles does not have many varieties. So customers has to run here and there for purchasing items. This can be brought into Coles by developing the current system a bit broader. This will increase the sales all over Coles. Furthermore, there are lots of frozen items stored in freezers.

Nowadays customer prefers buying fresh foods, as all are very cautious about their health. Even though there are few fresh snacks and bakery available in Coles, more of sandwiches, salads, coffee, pies, rolls etc. must be introduced. For the customers who have come for a big shopping can make them relax by having a cup of tea or coffee. This will make the customers attract and stop them going to any other shops. The strategy of “Food-to-Go” can be implemented for this.

4.5 Recommendation 5

Bargain to the suppliers Suppliers can increase or decrease the price anytime. This will affect the clients. Since they will be having hundreds of clients all over the country, the retailers won’t be able to bargain with them. So a way out for this can be, suppose if a supplier increased the price of a particular product of theirs by $2. Then as a retailer, the item cannot be deleted, as it can be one of the fast moving in the store. When the supplier increases the price with us, we can make sure that he might have increased for other clients as well.

Obviously, all the retailers who are selling this product will increase the price. Here arises the competition between leading supermarkets (like Woolworths and Aldi).  In such cases, the management of Coles should go through a survey, which says about the different prices marked in different stores for the same item. Once a proper study has been taken, then the prices in Coles can be marked down to a certain level. This will make the customers rush towards your store. In this way Coles can fight with other competitors in a profitable way (Wesfarmers.com.au, 2017).

5. Strategy Implementation

Strategic Implementation means how the above recommendations can be implemented for better results. Or in short words what is the way out for these problems to make the business more profitable (Low, 2017).

1. By rebuilding the system with the employment of more IT professionals to strengthen the network connectivity between all the stores across the country an expanding their business to different neighboring countries will be increasing the sales.
2. Tracking the productivity of the store by making sure that employee’s work and growth in the store is equal. Installation of barcode scanners near the entrance to detect the items not scanned during billing process to reduce thefts.
3. Putting up more advertisements and news all over the customers to make them know about any new offers, products, launching of stores etc. thereby making the customers less travel.
4. Introducing more varieties of Asian foods from different countries in order to reduce the customers to visit shops of their origin. If existing, it should be modified and developed.
5. The travelling distance between the suppliers and clients are pretty long. This increases the amount of time taken to reach the products in the respective stores. This can be brought down and also better prices must be marked in comparison with other leading competitors when there an increase in the price happens from supplier’s side.

6. Expected Outcome

Once the recommendations that proposed are implemented for some time, there will improve a lot in customer services, and in particular, comparing with other companies that having same business, it make the company more competitive, meanwhile, Due to better reputation, it is easy to bring the employee loyalty, which will be more conductive to the sustainable development of enterprises. Even though it will meet some barriers in the process of the implementation, This is only temporary. When the company passes a short period of adaptation in the process of the implementation, the most obvious outcome can be seen in the financial statements. The company’s incomes will be improved and operating costs will gradually decline.

7. Conclusion

As one of the leading super Market in the Australia. Through the recommendation of implementation, Coles just could improve the income and the capability of operation management. If strategy supplier needs a comprehensive consideration of a company’s operational capacity and develops a reasonable strategy to improve the competitiveness, the strategy maker considered the company cultural, employee happiness index and customer satisfaction survey and other comprehensive indicators.

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