What next for the Woolies/Coles stoush.

Posted on November 16, 2011 by strategyaudit

Woolworths and Coles price and promotion strategies are often shaped by what happens in the UK, as there is a history of successful imitation in Australia. The resurgence of Coles has taken the initiative from Woolworths, and the short term outcome has been price reductions to consumers, the flip side of course, and there is always a flip side, is a further hollowing of the production sector in Australia.

I am pretty sure that if you asked consumers which they would prefer, a price reduction today, or production security into the future, they would take the former, without understanding the probable consequences.

The Federal Court found last week in favor of Metcash in their effort to sell Franklins, saying in part that the competitive power of Woolworths and Coles served to keep prices to consumers down, solidifying the power of the status quo.

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StrategyAudit is a boutique strategy and marketing consultancy concentrating on the challenges of the medium sized manufacturing businesses that make up the backbone of our economy. The particular focus is on their strategic and marketing development. as well as the business and operational efficiency improvements necessary for day to day commercial survival. We not only give advice, we go down "into the weeds" to ensure and enable implementation.

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