Woolworths Ltd

The supermarket industry has been considered one of the most prosperous industries for Woolworths. Woolworths is operating in several different industries. In 2007, examples of the major brands operating under Woolworths Limited included Woolworths/Safeway supermarkets, Dick Smith Electronics and Dan Murphy’s. The supermarket industry consists of very few major players, which is kind of an oligopoly market type. In this industry, businesses retail a large range of products, especially focusing in groceries and non-specialised food lines. Products that are involved in this industry can be classified into categories. For example, bakery, fruit and vegetable, dairy, meat, beer and wine, canned food and household cleaning. Businesses that retail in a specific range of products and convenience stores are not included in this industry. In 2008, Woolworths was at the top of the market share in the supermarket industry, following by Coles, Metcash/IGA and ALDI. In recent times there have been a few key changes to the Australian supermarket industry, including the entrance of ALDI from Germany. In the economic and business environment point of view, the government is significant for the supermarket industry and has directly impact on it, such as legislating trading hours. Technological developments have been involved in this industry; examples include GEMMnet (Global Electronic Marketing and Merchandising Network), on-line shopping and investment in supply chain, distribution centres and systems. Changing societal concerns, attitudes and lifestyles have been impacting the industry’s market demand. Competition has been increasing due to new competitors, which put pressure on store to provide consumers with low competitive prices. Chain stores have invested in their supply chain and distribution centres to minimising costs, which can be passed to consumers in the form of lower prices. The supermarket industry offers very little differentiation in terms of products; therefore