Coles Strategic Management Assignment 

Effective situation analysis is an essential tool of effective strategic marketing (Ansoff, 2013). This research paper illustrates the effective situation analysis process of the leading supermarket of Australia named as Coles. Effective situation analysis helps the organization to identify their major rival groups, customer demands and needs. It also helps the organization to understand the internal and external factors effectively that directly affects the smooth running process of the organization (Antoniou and Ansoff, 2014).  

Brief about the organization

Coles is one among the largest retail super markets of Australia. It is a subsidiary of Wesfarmers. The company was set up in the year 1914 by G. J. Coles (Bossel, et al, 2016). The headquarters of this company is in the city of Melbourne. Recently the organization has over 770 outlets all around the Australia and total number of employees in the organization is 100,000. The major rival group of this brand is Woolworths. The organization also started their operations through the online platform to get more customers and to enhance the customer services.

Problem Statement

The organization Coles has effectual super market in Australia, but recently the organization faces the problem of reducing their brand reputation in the market that leads to reduce their sales annual revenues (Bowman and Asch, 2015). In this scenario, the major problems to the administration of the organization Coles is: “how to sustain in the super market chain of Australia by taking necessary initiatives to improve the quality of the products, strategies for reducing the products prices and promoting the business in proper marketing media.”   

Situation Analysis

To sustain in the competitive retail market of Australia, the organization Coles has to take necessary initiatives to get competitive advantages over its rival groups such that they can be able to attract more number of customers to their brand (Bradley, 2011). Before taking necessary initiatives of strategic plans, the organization has to analysis the current market effectively. Analysis of current market helps the organization to understand their positions in the market and it also helps them to understand their major rival brands. Effective market analysis also helps to understand the demands of the customers that are also an effective way to fulfill the demands to their customers that leads to give competitive advantages to the company over its major rival groups (Dess and Miller, 2013).

Effective tools of situation analysis of the organization can be classified into two subparts namely internal and external market situation analysis. Internal analysis helps the organization to understand their strengths, weakness etc. whereas external analysis helps to understand the market, customers’ demands etc. (Dodgson, 2012). To analysis the internal situation of the organization Coles, SWOT analysis tool is an effective way whereas to analysis the external market of the organization PESTEL analysis is an efficient tool. In addition to these, competitors’ analysis is also essential for the organization Coles to get competitive advantages over them (Foss, 2016). The major rival brand of Coles is Woolworths. The organization has to take effective strategies to get competitive advantages over this retail brand of Australia.

The administration of the organization Coles has to take necessary initiatives to analysis the current market of Australia in order to understand the demands of their customers that help the to get competitive advantages over the rival brands.  

Analysis of Customers’ Demand  

For boosting the sales of the organization Coles, the organization has to take necessary initiatives to improve their customer services. To provide better service to their customers, the organization has to understand the demands of their customers effectively. The organization must take necessary initiatives to improve their customer services (Special Issue of Strategic Organization: "Strategic Management Theory and Universities", 2015). Taking reviews from their customers helps the organization to understand the needs of their customers effectively.

Market Analysis

Market analysis is also essential for effective situation analysis. It helps the organization to understand the current market trends, demands of their customers etc. that helps to take effective strategies for improving their performances (Luck and Ferrell, 2014). Effective market analysis also helps them to identify their major rival groups. Market analysis also helps the organization to understand their target customers. It also helps the organization Coles to identify the effective marketing media to promote their brand among their target clients (Phillips, et al, 2014). Promotion of their brands among their target clients helps them to attract more customers to their organization that leads to improve their annual sales revenue and profit margin.

Competitors Analysis

Competitors’ analysis is an effective strategy for the organization Coles to understand their major rival groups in the retail sectors of Australia (Powell, 2014). The major rival group of the organization is Woolworths super market. Besides this Tesco, Aldi are also the major competitors of the brand. The effective analysis of the competitors of the organization helps the organization to take necessary initiatives to get competitive advantages over the rival groups. The organization can adopt various strategies to get competitive advantages in the market.

      Competitors’ analysis helps the organization to take effective pricing strategies that helps them to get competitive advantages in the market.

      It also helps them adopt latest technologies in their organization that leads to enhance their customer services (Grundy, 2014).

      Effective competitor analysis also helps the organization Coles to adopt latest technologies in their stores that leads to improve the customers’ experiences. Improvement in the customers’ experiences helps the organization to attract more customers to their stores that also boost their sales and helps them to improve their brand image in the market.

      The organization has to take the strategies of special offers and special discounts for their customs to get competitive advantages in the market.

Internal Situation Analysis

To take effective marketing strategy to promote the brand, the organization Coles has to analysis their internal situation effectively that helps them to understand their position in the market. For analysis of the internal situation, SWOT analysis is an effective tool (Wheelen and Hunger, 2012). It is an acronym for strengths, weakness, opportunities and threats.

The organization has good brand image in the Australian retail market that helps the organization to expand their business. Reduction in the customer services and product quality are the two major causes of concern for the organization (Jeyarathnam, 2013)       . The company has great opportunities in the other countries also besides Australia. The lower pricing strategy of its major rival group Woolworths acts like a big threat to the organization. Thus internal analysis helps the organization Coles to take suitable strategies to improve their performances. The organization has to utilize its opportunities in effective manner in order to get success in the competitive market of the world. Besides this, they also have to take necessary initiatives to reduce their weakness and threats. 

External Situation Analysis

External situation analysis of the organization indicates their position in the global market. For effective analysis of the external factors of the organization, PESTEL analysis is an effective tool (Jeffs, 2011). It helps them to understand the political and economical condition of the country that directly affects the buying behavior of the customers (Hemphill, 2104). To run their business effectively, the organization also has to follow all the rules and regulations of the local government effectively. Understanding the social factors of the countrymen helps the organization Coles to adopt effective strategies to fulfill the demands of their customers. The organization also has to analysis the effects of technological revolutions effectively in order to adopt the suitable technologies in their organization that helps them to improve their customers’ experiences. 

Recommendations

Although the supermarket chain named as Coles has various advantages over its major rival groups like Woolworths, Aldi, Tesco like lower prices of the products, easy and safe payment options etc., but also the organization has to take effective steps to improve their performances (Hitt, et al, 2012).

ü  Improvement in the quality of the products leads to improve their brand value that also has a significant effect on the buying behavior of the customers.

ü  The organization also should take necessary initiatives to improve the customer services to attract more number of customers to their stores.

ü  The retail brand has its market in Australia; the organization also should take necessary initiatives to expand their business in the countries like UK, US, and Asia.

ü  In addition to this, the organization should also promote their brand through the social media platform to get popularity in the market.

ü  To improve the customer services of the organization Coles, the organization should take the strategy of taking reviews from their customers that helps them to take effective steps to enhance their customer services.   

Conclusions

This research paper depicted the effective situation analysis processes of the organization Coles. Coles is a leading retail super market of Australia. The effective components of the effective situation analysis process include internal market analysis, external market analysis, competitors’ analysis, customers’ demand analysis and market analysis. Effective analysis of the competitors’ sets of the organization and market analysis helps the organization Coles to take necessary strategies to improve their performances.   In addition to these, this research paper also suggested some strategies that help the organization Coles to expand their business such that they can be able to earn more profits. 

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