Innovation and Sustainable Business Development

Executive Summary of Novel Value Preposition

Coles Supermarket is one of the leading Australian Supermarket chains which have its headquarters in Melbourne as a part of Coles group. There are various issues faced by the organization in order to deliver services to the customer. Therefore this study will develop an innovative solution that will help the organization to eradicate all the challenges and have the organization to accomplish desired goals.

Table of Contents


The problem to be solved.

Problem insight

Porter five analyses.

Threat of new entrants.

Bargaining power of suppliers.

Threat of substitute products.

Rivalry among existing firms.

Value chain analysis.

Primary activities.


Outbound logistic.

SWOT analysis.





Solution selection.

Novel value proposition.

Target customers.

Competitive advantage.

Strategic fit

Assumption and uncertainty.

Argumentation for deflection of innovative tool

Critical reflection.



Introduction to Novel Value Preposition

The aim of this study is present a novel value proposition for Coles supermarket. Coles Supermarket is one of the leading Australian Supermarket chains which have its headquarters in Melbourne as a part of Coles group. The organization is also working on online platforms in order to deliver best services to the customer. There are large numbers of supermarkets in Australia but Coles have its different position throughout Australian market. There are almost 10,000 employees working which full dedication and enthusiasm for the organization. It enables to accomplish organization goals and vision (Olstad et al., 2017). It is one of the most trusted supermarket chains which have its roots in different parts of Australia. The organization is delivering its services to almost 21 million customers who’s shop with organization. Organization delivers large range of products to the customers and always adopts different strategies and approaches that can accomplish organization goals and satisfy customer needs. Issues faced by the organization in order to deliver services to the customer. Therefore this study will develop an innovative solution that will help the organization to eradicate all the challenges and have the organization to accomplish desired goals. The study will focuses on different Technologies that helps organization to eradicate the challenges and big data is one of the technology that organization can use in order to eradicate this issue.

The Problem to Be Solved

The biggest challenge faced by supermarket giant Coles is it supply chain issues that impact the organisation productivity and financial stability. In order to eradicate this issue the organisation can use different technology that can add the organisation to eradicate these issues.

Problem Insight

Presently the organisation has expressed concern facing supply issues and demand challenges. The organisation is facing supply and demand challenges that influence the organisation overall productivity and financial stability. Due to covid-19 the organisation faces issue in delivering and supplying the products (Grimmer, 2019). The supply of products from country likes China and organisation performance because most of the products services and refrigerators and other equipment’s get delayed from China that have been packed the supply chain transformation. Apart from this the supply chain issue is already existed in organisation before this pandemic as the demand of products does not meet and the organisation face various issues in satisfying the customer needs. The organisation needs to add different strategy that could help organisation to eradicate the challenges and issues. It has been noted that logistic has remain the challenge for the organisation for a very long time however this pandemic hardly impact the organisation. The availability of product could not meet the customer demands as due to supply chain issues. The organisation needs to adopted different strategies such as big data. It highly impact supply chain inventory as big data analytics enables operation managers to get the information of minute by minute overview of operation and overview bottlenecks that slow down supply chain process. It has been also noted that it also improves the product quality selling procedure that can satisfy the needs of customer.

Figure 1: Value proposition canvas

Business Model Canvas

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments







International expansion


Huge portfolio

High quality products

Brand awareness

Huge market

Key Resources


Delivery networks

800 stores



Cost Structure

Revenue Streams

Industrial cost





Porter's Five Forces

Porter Five Analyses

Porter five analyses the best tool that aids the organisation to determine the competitive landscape of an industry. These five forces are comprises of threat of new entrants, practices to substitute products or services, Power of buyers, bargaining power of suppliers and rivalry among existing firms.

Threat of New Entrants

Coles is one of the biggest Supermarket chain in Australia and the key advantage of economies of scale has been in the industry is fighting of new entries to its cost advantage. The price of the organisation products is highly affordable that the customer chooses Coles apart other organisation. It makes production costlier for the new entries. The product differentiation of the organisation is highly strong with industry as organisation deliver best quality of products which retain their customers (Xu et al., 2020). The product of the organisation is highly standardized and requires stick licensing and legal requirements that any other organisation cannot make it up. The organisation focus on innovation in its product and that is the key that for the new entries.

Bargaining power of suppliers

The bargaining power of suppliers in industry is quality higher than buyers for Coles operator. It refers that supplier have these control over the prices and this makes the bargaining power of suppliers a weak force. The organisation purchase raw material from its supplier at low cost as the organisation have different supplier as for the location in which the storage located which is a benefit for organisation. The organisation has good relationship with suppliers that highly impact the organisation productivity.

Threat of substitute products

Due to globalisation large variety of products are available in the market and there are many different start-ups have emerged which highly impact the organisation. These new associations create different products and services that can retain large number of customers and that this will be a great third for the organisation product and services (Masum et al., 2019). The organisation can combat this challenge by delivering services and adopting Different techniques and approaches in its services. The organisation needs to gain customer attention by adopting different strategies and programs that can retain its customer. The organisation needs to build its product in such a way that it seems to have a unique feature that no other organisation can have. Organic product is now the preference of many customers that organisation needs to span is product majorly in organic material.

Rivalry among existing firms

Large number of companies is competitors of the organisation such as Wal-Mart. There are different organisations that can be a great had for the firm the four different approaches in all departments of the organisation need to be adopted. The existing issues need to be eradicated in the organisation that impacts the overall productivity. Organisation needs to focus on new customer rather than winning the ones from the other companies.

Value Chain Analysis

Value chain analysis is referred as the activities that it had the organisation to analyse the competitive force of the industry. It is one of the most effective tool that help the organisation to identify the gaps in the existing operation and undertaken best steps to eradicate this.

Primary Activities

The primary activities of the organisation are directly involved in innovating as well as selling the product to the target customers.


 Organisation is delivering a wide range of products in fact mostly all range of products are present in the stores. Organisation is also focusing on providing organic product to the customer which is now in organization.

Outbound Logistic

The organisation can optimise as well as analyse the outbound Logistic in order to explore competitive advantage and accomplish the business objective (Grimmer, 2019).

SWOT Analysis


  • As the organisation is leading Supermarket chain in Australia therefore it acquires large customer. The organisation has impactful success record of integrating complementary forms through mergers and acquisition.
  • High level of customer satisfaction is the key priority the organisation.
  • The organisation has a strong brand portfolio
  • The organisation also has impactful free cash flows and has successful go-to-market strategies.


  • Supply chain management of the organisation is quietly weak that impact the productivity of the organisation
  • Have large number of Connecticut which divert the customer preferences
  • The organisation have these investment in new technology that leads to less modification in its operation systems
  • The financial stability of the organisation is not done properly and efficiently organisation needs to update organisation needs to upgrade its asset ratio can give more competitive edge.


  • Adaptation of new technology will give competitive edge to the firm and also increase productivity.
  • As your organisation always focus on innovative products that phone creating new products that satisfy the needs of customer will be the biggest opportunity for the organisation.
  • The organisation is focusing on delivering organic products to the customer as it is the biggest opportunity for the organisation to retain its customer (Van Kampen & Kirkham, 2020).
  • Organisation is opening up new market because of government agreement which give an opportunity to enter into emerging markets.


  • Increasing competition is the biggest threat for the organisation
  • New technologies developed by the competitors may impact the organisation present strategies and operations.
  • Inefficient supply chain management can strongly impact the organisation productivity and growth.
  • Rising raw material can pose a threat to the organisation profitability.

Solution Selection

Coles supermarket is facing supply chain issue that highly impact the organisational productivity and performance as there is need to enhance the supply chain management by adopting new technology present in the market. As per the value chain analysis and SWOT analysis it has been identified that the organisation needs to improve its supply chain in order to accomplish the organisation goals and eradicate the challenges that organisation is facing (Mortimer & Grimmer, 2018). Big data analytics help the organisation to get enhancement in Customer services and demand fulfilment by minute to minute analysis of operations in the organisation.

Novel Value Proposition

One of the biggest advantages of big data is that it helps organisation identifies the gaps in supply chains which comprises of delayed in services and inadequate supply of raw materials etc. Big data helps the organisation to assess the use data and take appropriate steps decision making process.

Target Customers

Target audience of the organisation is the Australian wealthiest citizen. The organisation target high class people as well as middle class people as target customers. Organisation manufactures wide products in order to deliver by services to the customers.

Competitive Advantage

After implementing the big data in the organisation then the organisation will be able to eradicate the supply chain issue and make better decision for the organisation (Grimmer, 2019). Delivering best quality of products within minimum time help the organisation to capture a larger audience and it gives a competitive edge to the organisation.

Strategic Fit

Coles is one of the most recognised supermarket chains that grabs customer. The organisation needs to meet the demand of the customer within minimum time range. The organisation needs to strong its supply chain which will be done by having big data and its operation system.

Assumption and Uncertainty

Big data is one of the best approaches but it is not certain that it will entirely change the supply chain management of the organisation (Olstad et al., 2016). As the organisation is one of the biggest Supermarket chain that there are various ups and downs in supply chain management so big data cannot perform hundred present to eradicate the challenges.

Argumentation for Deflection of Innovative Tool

Innovation is one of the major key factors that help the organisation to accomplish its desired goals. The innovation of any organisation will directly impact is productivity and customer engagement (Haskins et al., 2020). If the organisation is focusing in enhancing supply chain management and adopting big data then various changes will be seen in the supply chain management.

Critical Reflection on Novel Value Preposition

From this study I have learnt that there are various tools and technology that can be added in organisation operation which will directly impact is productivity and performance. I am not so knowledgeable in terms of implementing correct technology for the Coles but big data can prove to be a better option for the organisation in order to analyse and improve its supply chain management. The overall experience was amazing and it helps me to generate innovative ideas that can help organisation to eradicate its challenges.

Conclusion on Novel Value Preposition

It is concluded from the study that logistic has remain the challenge for the organisation for a very long time however this pandemic hardly impact the organisation. The availability of product could not meet the customer demands as due to supply chain issues. The organisation needs to adopted different strategies such as big data.

References for Novel Value Preposition

Grimmer, E. L. (2019). The power of private labels drives Coles’ deal with Sainsbury’s: Interview with Isabelle Lane.

Grimmer, L. (2019). Coles is slinging everything from smashed avo to giant packs of pasta, but consumers could lose out: Interview with Isabelle Lane.

Grimmer, L. (2019). Coles, Woolworths and crazed consumers: Industry lacks leadership on plastic crisis: Interview with Matthew Elmas.

Haskins, B., Nehme, Z., Cameron, P., Bernard, S., Parker‐Stebbing, L., & Smith, K. (2020). Coles and Woolworths have installed public access defibrillators in all their stores: It is time other Australian businesses followed their lead. Emergency Medicine Australasia32(1), 166-168.

Masum, A. K. M., Chandrapala, J., Adhikari, B., Huppertz, T., & Zisu, B. (2019). Effect of lactose-to-maltodextrin ratio on emulsion stability and physicochemical properties of spray-dried infant milk formula powders. Journal of Food Engineering254, 34-41.

Mortimer, G., & Grimmer, L. (2018). Love them or loathe them, private label products are taking over supermarket shelves. The Conversation, (19).

Olstad, D. L., Ball, K., Abbott, G., McNaughton, S. A., Le, H. N., Mhurchu, C. N., ... & Crawford, D. A. (2016). A process evaluation of the Supermarket Healthy Eating for Life (SHELf) randomized controlled trial. International Journal of Behavioral Nutrition and Physical Activity13(1), 27.

Olstad, D. L., Crawford, D. A., Abbott, G., McNaughton, S. A., Le, H. N., Ni Mhurchu, C., … Ball, K. (2017). The impact of financial incentives on participants’ food purchasing patterns in a supermarket-based randomized controlled trial. International Journal of Behavioral Nutrition and Physical Activity14(1).

Van Kampen, T., & Kirkham, R. (2020). Assessment of the Supermarkets and Grocery Stores Sector in Australia: A Case Study of Woolworths and Coles using DEA and VAIC™. Journal of New Business Ideas & Trends18(1).

Xu, E., & Lee, T. (2020). Supermarket magazines and foodscape mediation in Australia. Communication Research and Practice6(2), 111-124.

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