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Economic about e-commerce Essay

Woolworth (ASS: WOW) and Westerners (ASS: WEST) – as well as a high Australian dollar – for the tough trading conditions impacting the company. Whilst the grocery market earned a mention for its impact, Coca-Cola Amatol took aim at the company’s primary competitor Cheapest for its unprecedented levels of discounting. In order to promote its new product Pepsi Next, Cheapest undertook an aggressive discounting strategy, whereby the price gap between Coke and Pepsi had widened room 38% to 48%, according to Warwick White, the head of Coca-Cola Amity’s Australian business.

Davis also stated that Coke’s volumes in grocery stores had plunged by 14%. These circumstances, amongst others, saw Coca-Cola Amity’s beverage earnings in the Australian region tall by 10. 1% tort the halt. Whilst Coca-Cola Amity’s Australian business generates around 75% of the company’s profits, a fall of 10. 1% was damaging on the overall result. The company’s shares are currently sitting at $12. 6, having regained ICC or 1. 83% from its loss yesterday.

Foolish Takeaway: Yesterdays result was far from ideal and investors had every reason to be disappointed. However, the company’s prospects in Indonesia are looking very attractive, and it will re-enter the beer market later this year, offering

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yet another avenue for strong revenue. With shares now trading at what is nearly a 12-month low, investors are presented with an opportunity to add one of Australia’s strongest companies to their portfolio.

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