Swot Of Costco's Competitive Strategy

ORGANISATION TYPE COMPETITIVE ADVANTAGE THREAT

Coles Current substitute By offering the same or similar products like Woolworths and with a better customer loyalty scheme, Coles is a current substitute. The revenues for Coles are projected to grow in the next five years as they look to tackle both Woolworths and ALDI, by revamping its private-label inclusions. Very High

ALDI Potential substitute With its low cost model and better range of private-label goods, ALDI takes a large of customers from the 1st, 2nd and 3rd quintiles from Woolworths. There also has been increasing positivity in consumer sentiment on private-labelled goods. This only add to the increasing the threat of ALDI to Woolworths. Very High

COSTCO New entrant Costco Australia is a subsidiary of US-based Costco Wholesale Ltd. Since 2009, Costco has provided an alternative to traditional supermarkets and grocery stores. Costco offers low-price

Most Costco stores in Australian are located in suburban or regional areas where there are limited transport options. Since most of their goods are sold in bulks, this attracts time-poor customers and families to stock up on essentials, limiting their grocery shopping. Costco also, attracts niche market segment that Woolworths ignores, i.e. the small business owners by being a one-stop shop for their business supplies.

Costco also, takes the concept of “one-stop” shop to expand its product offering to include whitegoods, electronics, clothing etc. This customer appeal is universal, especially among the first four quintile groups. High

IGA Potential substitute Independent Grocers Association(IGA) is part of Metcash Limited. The parent company manages a portfolio of brands that independently owned stores, IGA. Metcash is responsible for the purchasing, merchandising, warehousing, marketing and distribution of products to stores. Individual store operators are then responsible for day-to-day