“食品杂货商”采用各种削减成本的策略，因为他们必须保持顾客承诺的折扣因素。成本削减策略包括削减开支，削减几种产品的开支，在地理位置削减开支，根据技能和专业知识进行削减。“食品杂货商”在不同的产品选择上花费不同的费用，这就是公司在顾客中出名的原因。在向世界其他地区扩张的同时，“食品和杂货商”需要保持打折的承诺。公司的定价策略是竞争性定价策略，这也是为什么“食品和杂货商吸引更多的顾客”(Carroll and Ahuvia, 2006)。
采用波特五力分析工具进行外部分析。新进入者对“食品和杂货商”的威胁很大，因为新的食品零售店正在出现，尤其是在欧洲食品零售市场。然而，进入市场的门槛很高，但由于其他欧洲国家拥有强大的金融背景，它们仍可能面临新的竞争。供应商的议价能力是中等的，因为供应商有能力影响产品的价格。买方的议价能力也很高，因为客户有多种选择。食品零售业的用户每年超过18亿。随着新服务的引入，“食品和杂货商”将比其他食品零售店具有竞争优势。替代产品或服务的威胁也很高，因为其他食品零售店也在提供同样的产品;唯一的区别在于服务和价格。诚然，食品零售业在市场上有着独特的地位，但它们仍面临来自替代产品的强大威胁。现有公司之间的竞争非常激烈，尤其是Aldi和Woolsworth之间，而“Food and Grocers”也加入了竞争，因为Aldi和Woolsworth降价时，他们也需要降低商品价格(Chaudhuri and Holbrook, 2001)。
“Food and grocers” is using various cost cutting strategies because they have to maintain discount factors as promised by the customers. Cost cutting strategies like cutting expenses, cutting expenses of several products, cutting expenses in geographic locations and cutting on the basis of skills and expertise. “Food and grocers” cost expenses in different product options and this is the reason why the company is getting famous among the customers. While expanding in other portions of the world “Food and grocers” need to maintain their promise of discount. Pricing strategy of the company is competitive pricing strategy and this is the reason why “Food and grocers is attracting more customers (Carroll and Ahuvia, 2006).
For analysing the internal situation of the company Swot analysis will be used. The segment of “Food and Grocers” is targeting for good quality products along with reduced prices.
Main strength of the company is strong backup by the government of Australia. They also have a strong hub of their food retail store in their home town. They have strong workforce for over 1200 employees. They are facing intense competition in the market through other food retail stores. Opportunities for the company lie in international expansion of the company. Main threats for the company are in the form of increasing prices of organic goods and increasing competition in the country. Increasing levels of competition are becoming a threat and competitive pricing strategy needs to be introduced. For coping with Aldi and WoolsWorth, “Food and grocers” need to work on increasing their products. Restricting is required for decreasing the operational costs of the company so prices of goods can be decreased more for creating a price differentiation in the market.
External analysis will be presented by using the tool of porter five forces. Threat of new entrants for “Food and Grocers” is high because new food retail stores are emerging especially in European food retail market. However, the entry barriers are high in the market but still new competition can emerge from other European countries because they have a strong financial background. Bargaining power of the suppliers is medium because suppliers have the power to impact on the prices of products. Bargaining power of the buyers is also high because customers have various options. More than 1.8 billion users are present every year in food retail sector. With the introduction of new services “Food and Grocers” will have a competitive advantage over other food retail stores. Threat of substitute products or services is also high because other food retail stores are also offering the same products; the only differentiation is in services and price. It is true that food retail sector has a unique standing in the market but they have still strong threats from substitute products. Rivalry among the existing firms is high especially between Aldi and Woolsworth and “Food and Grocers” comes in this rivalry because they also need to decrease the prices of their goods when Aldi and Woolsworth decrease their prices (Chaudhuri and Holbrook, 2001).