Tag Archives: Porter’s five forces competitive analysis

Carry out a Porter’s five forces competitive analysis and state your conclusion regarding the supermarket industry’s attractiveness to new entrants

THE AUSTRALIAN

SUPERMARKET INDUSTRY

Industry overview and characteristics

The Australian supermarket industry, defined as businesses retailing groceries and food lines, is classified as a mature industry. Organisations competing in mature industries employ aggressive cost-reduction initiatives, with competitive advantage evolving from cost-based, rather than differentiation-based, factors. The introduction of private-label merchandise is one such cost-reduction initiative. Introduced by Aldi during its market foray in 2001, private-label merchandise evolved to become a popular cost-reduction tactic adopted by the industry’s foremost competitors. Expanding market popularity of privatelabel merchandise (products manufactured and sold under a retailer’s own brand) offers comparable quality and value for money, growing from 13.5 per cent of total supermarket sales in…………..

Macro environmental influences

Reduced consumer sentiment and disposable household income have an effect on supermarket spend. Consequences….