Value Chain Analysis according to [1](2006) is a tool used for creating the best possible value for customers and the best way in maximizing the company’s profit. Value Chain Analysis has three steps:
Activity Analysis. In activity analysis the first step is to brainstorm the activities that the company will undertake. In an organizational level has a step-by-step business process in serving the customers. This is called the Primary Activities. It includes marketing of products and services, sales and order-taking, operational processes, delivery, support and more (depending on the industry.
Value Analysis. After identifying each activity the company management must list the Value Factors, value factors are the things and services the customers value the most.
Evaluate Changes and Plan for Action. After completing the Value Analysis, the management will seek action. First is to pick the easy tasks, although the company will generate a small income with the tasks it will definitely boost the energy of the team. Then assess the more difficult changes. And the remaining tasks must be prioritized and tackle them one-by-one.
According to the 2] (2004), the shopping and grocery habits of Australians have changed over the past years. There are many factors that contribute to these changes and these are: population changes, size of households, new retailing practices and changes in lifestyle.
Australian consumers are more health-conscious nowadays compare years ago. The supermarkets in Australia saw this trend and promote healthy nutritious foods by expanding the fresh and health sections in supermarkets.
Consumers not just in Australia but all over the world are attracted in new products and services in the market. Shopping habits of Australian consumers are changing, a number of consumers do quick short trips to the supermarket more often. According to in 2002 about 62% of Australian consumers spent less than one hour shopping while back in 1998 there were only 28%.
Because of these changes in shopping habits grocery markets in Australia created new formats in order to provide the customers convenience, speed and freshness. Way back then only wet markets provide customers with fresh products; grocery stores have food stores in shopping centres, strips, neighborhood centres and convenience stores.
The retail industry in Australia is facing a great international competition in five to ten years because of the entry of Tesco from the United Kingdom and Wal-MART OF THE United States.
Woolworths
Woolworths Limited according to [3] (2006) the largest retail company in Australia and New Zealand using market capitalization and sales, the largest food retailer in Australia and New Zealand, largest takeaway liquor retailer, Hotel and Poker Machine operator in Australia. (1990) discussed that the Philosophy of Woolworth’s Management is always applied in its daily operations. The approach of managers trying new ideas and penalized if did not is very productive. The format of the store is interchangeable. Woolworth also emphasizes human as one of the factors. Woolworth is a company committed in having and giving excellent performance.
(2004) discussed that formats in the stores also include the technology. It assists the supermarkets in merchandising, distribution, sales and markdowns. Woolworths is following Wal-Mart and Tesco by having wireless computer chips in their system, known as radio frequency and identification.
Woolworth has been distributing petrol products since 1996. When Coles Myer had a deal with Shell, Woolworths also had an exclusive deal with Caltex in order to compete with Coles Myer-Shell.
Woolworths introduced Everyday Low Pricing Strategy (EDLP) on national brands making the manufacturers cut the prices for supermarkets.
Coles Myer
Coles according to (2006) was founded in the year 1914, back then it was called “Coles Variety Store.” In August 1985 the Myer Emporium Ltd. And GJ Coles & Coy Ltd. Merged and became Coles Myer Limited.
Just like Woolworths Coles Myer is also introducing the use of radio frequency identification in the company’s system. The chips are able to store data about the goods and its sources, destination, price, color, weight and many more.
Coles Myer ventured into distribution of petrol and unleashed a deal with Shell. Then the fuel discount changed dramatically because of cheap petrol, making Woolworths deal with Caltex.
While Woolworths introduced everyday low pricing strategy Coles on the other hand, launched the “Save everyday” as campaign starring Lisa McCune. The company sticks to high-low pricing strategy in some national brands and having everyday low pricing strategy on some of the company’s products.
Aldi
Aldi according to (2006) is an international supermarket chain that is based in Germany. Aldi sold products that are own-brand; the company specializes in items like food, beverages and other household items. The supermarket also sells outside brands but very limited.
Credit:ivythesis.typepad.com
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