2022 Semester 2

MGE 1201 ECONOMICS FOR BUSINESS

Assessment 2: Individual Assignment

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Resources for this assignment are:

Ÿ Chapters 7 – 9 from the the prescribed text book Layton A., Robinson. T, and
Tucker I. (2019) Economics for Today or earlier versions. Copies of these chapters
are on LMS.

Ÿ Videos resources for assignment on LMS.

foxtrot

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5 Use economic concepts and terms in your answers. Take care NOT to substitute words
with specific economic meaning with any similar meaning words from Thesaurus (a
helpful resource is Studiosity in LMS). Where economic models/diagrams are required,
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6 Marks may be deducted for late submission. If you need an extension, seek permission
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This assignment is marked out of 40 marks and contributes towards 20% of your total marks
for the subject.

Due Date: Sun 21 August 2022 (Sunday) just before

midnight.

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 Annex 1
This is not a full report but is only an extract which is sufficient for the purposes of this
assignment.

SOURCE:
https://www.ibisworld.com/au/industry/liquor-retailing/398/

Liquor Retailing in Australia industry trends

(2016-2021) - Market Research Report
Updated: November 29, 2021

Players in the Liquor Retailing industry have faced mixed operating conditions over the
past five years. Rising health consciousness has contributed to falling per capita alcohol
consumption, constraining revenue performance. However, government-imposed
restrictions on competitors in the pubs, bars and nightclubs industry in response to the
COVID-19 pandemic have bolstered industry growth over the past two years. This trend
includes a fall of 8.1% in 2021-22, as restrictions on hospitality venues ease. Industry
competition has intensified over the period, with Woolworths in particular increasing its
market shares at the expense of independent liquor retailers. Discount supermarket ALDI
has also captured an increasing share of the market …..... 

Liquor Retailing in Australia industry outlook

(2021-2026)
Average industry growth 2021-2026
The Liquor Retailing industry is forecast to decline over the next five years. However, this
decline is primarily due to the artificially high revenue growth over the past three years.
Providing there are no significant new COVID-19 outbreaks and restrictions on licensed
establishments continue to ease, retail demand for liquor is forecast to return to pre-
pandemic levels. The rising popularity of premium categories and greater at-home
consumption of spirits and premium beer are likely to be the main growth drivers over the
period. Endeavour Group and Coles are projected to maintain their market dominance.
However, they are projected to face increased competition from online platforms and banner
groups such as Independent Brands Australia.

Liquor Retailing in Australia industry statistics

 Market Size: $16bn

 Number of Businesses: 6,568

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  Average Industry Profit Margin: x.x% 

 Industry Employment: 29,417

Biggest companies in the Liquor Retailing

industry in Australia
The companies holding the largest market share in the Liquor Retailing in Australia
industry include Endeavour Group Limited, Coles Group Limited and Metcash Limited.

Endeavour Group Limited Market Share: x.x%

Coles Group Limited Market Share: x.x%
Metcash Limited Market Share: x.x%
 ALDI Pty Ltd Market Share: x.x% 

What is Liquor Retailing industry in Australia?

Industry Definition
Liquor retailers sell liquor (including beer, wine, spirits and ready-to-drink mixers) in
packaged form (i.e. bottles and cans). Alcohol retailed by the industry is intended for
consumption away from liquor store premises. The industry includes both online and bricks-
and-mortar retailers.

Industry Products and Services

 Wine
 Beer
 Bottled spirits
 RTDs
 Cider

Industry Activities
 Alcoholic beverage retailing
 Online liquor retailing
 Liquor shop operations

Market research report - table of contents

About this Report

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Industry Definition

Liquor retailers sell liquor (including beer, wine, spirits and ready-to-drink mixers) in
packaged form (i.e. bottles and cans). Alcohol retailed by the industry is intended for
consumption away from liquor store premises. The industry includes both online and
bricks-and-mortar retailers.

Main Activities

Alcoholic beverage retailing

Online liquor retailing
Liquor shop operations

Similar Industries

Additional Resources

Industry at a Glance

Industry Statistics Snapshot

Industry Structure

Executive Summary

Industry Performance

Key External Drivers

Total alcohol consumption

Demand from pubs, bars and nightclubs
Real household discretionary income
Average weekly hours worked

Current Performance

Alcohol consumption trends

Rising profitability
Increasing competition
Independent retailers
 Chart: Revenue Growth

Industry Outlook

Online liquor sales

Varied profitability

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Rising competition
Taxation
 Table: Liquor Retailing in Australia Industry Revenue Outlook

Industry Life Cycle

Life Cycle Reasons

 Chart: Benchmarking - Liquor Retailing in Australia Industry Lifecycle vs The Economy

Products and Markets

Supply Chain

Key Buying Industries

Consumers in Australia

Key Selling Industries

Beer Manufacturing in Australia

Wine Production in Australia
Spirit Manufacturing in Australia
Liquor Wholesaling in Australia

Products & Services

Per capita alcohol consumption has declined over the past five years. However, revenue
from liquor retailing has continued to rise due to the growing popu...

Males aged 40 and over

Females aged 18 to 39
Females aged 40 and over

Demand Determinants

The Liquor Retailing industry is sensitive to changes in the economy, particularly

factors that affect household discretionary income. As a result, change...

Major Markets

Males aged 18 to 39
Males aged 40 and over
Females aged 18 to 39
Females aged 40 and over
 Chart: Major Market Segmentation for the Liquor Retailing in Australia Industry

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International Trade

Business Locations

 Chart: Business Locations by State

Competitive Landscape

Market Share Concentration

The Liquor Retailing industry is highly concentrated. The four largest industry players
are estimated to account for over 75% of the industry in 2021-22. ...

Key Success Factors

Cost Structure Benchmarks

Profit, Purchases, Wages, Other Costs

 Chart: Cost Structure Benchmarking – Sector vs Liquor Retailing in Australia

Basis of Competition

Internal competition
External competition

Barriers to Entry

 Table: Barriers to Entry Checklist for the Liquor Retailing in Australia Industry

Industry Globalization

Major Companies
Endeavour Group Limited is a publicly listed company that derives revenue from the retail
sale of alcohol and through the operations of hotel pubs. The co...

Endeavour Group

 Table: Endeavour Group - financial performance

Coles Group

Metcash

Operating Conditions

Capital Intensity

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The Liquor Retailing industry exhibits moderate capital intensity, with the majority of industry
operations carried out by employed labour. Employees are ...

 Chart: Level of Capital Intensity for the Liquor Retailing in Australia Industry
 Chart: Tools of the Trade: Growth Strategies for Success

Technology & Systems

Revenue Volatility

 Chart: Volatility vs Industry Growth

Regulation & Policy

Industry Assistance

Key Statistics

 Table: Industry Data for the Liquor Retailing in Australia Industry

Industry Revenue (2007-2028)

Industry Gross Product (2007-2028)
Establishments (2007-2028)
Businesses (2007-2028)
Employment (2007-2028)
Exports (2007-2028)
Imports (2007-2028)
Wages (2007-2028)
Domestic Demand (2007-2028)

End of Report

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declare that the MGE 1201 assignment for 2022 Semester 2 which I am submitting

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REFERENCE LIST

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