Answer To: ECOM4000 Economics Individual Assignment T3 2021 Kaplan Business School (KBS), Australia 1 Document...
Komalavalli answered on Feb 01 2022
Section A:
Question 1
The phrase "oligopoly" refers to the structure of a certain market, industry, or corporation. When a market is divided across multiple joint ventures, it is considered to be autocratic or excessively centralized. Firms create an authoritarian market, allowing existing small businesses to compete in a market controlled by a few. Companies frequently determine trends and prices, and seek to develop partnerships and agreements that set prices above dominating enterprises' marginal costs. This indicates that authoritarian businesses fix their pricing in order to maximize their own profits. Finally, this leads to collaborations and partnerships that benefit themselves and other firms, particularly smaller businesses operating in the same market or sector.
According to a February 2014 Roy Morgan (2014) research, the two behemoths have a 72.5 percent market share in the $82 billion supermarket business (cited in The Australian, 2014). Woolworths alone acquired 39 percent of the market share out of a total of 72.5 percent to target these models, with Coles collecting the balance with a 33.5 percent market share. Woolworths is an Australian supermarket/grocery chain owned by Woolworths Limited, with a total of 872 shops across Australia, separating the two giants' unique histories. In comparison, Coles Grocery, sometimes known as Coles, is an Australian supermarket chain owned by Wesfarmers and the better half of Woolworths in terms of exclusivity.
Woolworths operates in an oligopolistic market. Coles and Woolworths are grocery store behemoths that control the vast majority of the market. Firms in this industry have a few charge putting powers since there is product diversification, and unique supermarkets import a variety of things for society. There are positive barriers to entering the market since Coles and Woolworths have established themselves as market heavyweights. However, Aldi has just entered the market through charge slicing strategies, taking market share away from the two behemoths.
Question 2
Woolworths and Coles have been Australia's major supermarket companies for several decades, with a combined market share of 80%. The expansion of the Aldi supermarket, however, threatens their authority. Despite this danger, the industry's primary competitors are Cole and Woolworth. The rivalry between the two supermarkets is ferocious and acrimonious. Their strategic movements, however, bear little resemblance. When one store takes a smart move, other supermarkets will imitate and follow. Woolworth, for example, implemented a "Fresh Foods" approach a few years after being conquered by Cole, who enabled it dominate the market for a while before Cole imitated it. Cole just started a marketing campaign named "discount, lower pricing" in order to reduce the price of its products. This demonstrates that Woolworths is launching a similar ad dubbed "Cheap" with a similar goal to Cole's. In other words, no store can afford to lose ground to...