MACQUARIE GRADUATE SCHOOL OF MANAGEMENT MGSM CASE STUDIES IN MANAGEMENT IGA and the Coles-Shell Alliance Simon Rushworth and Francis Buttle Macquarie Graduate School of Management MGSM Case 2005-6 September 2005 Disclaimer MGSM Case Studies in Management are produced as a means of stimulating discussion amongst management scholars and students. The facts reported are meant for discussion only, and are not be interpreted as imputing any value judgments on management decisions and actions. Copyright © Simon Rushworth and Francis Buttle, 2005 Research Office Macquarie Graduate School of Management Macquarie University Sydney, NSW 2109 Australia Tel 612 9850 9016 Fax 612 9850 9942 Email
[email protected] URL http://www.mgsm.edu.au/research Director of Research Associate Professor John Rodwell Manager, Research Office Ms Kelly Callaghan ISSN 1445-3126 Printed copy 1445-3142 Online copy MGSM Case 2005-6 IGA and the Coles-Shell Alliance Simon Rushworth Envisioning – Marketing Consulting 28A Makinson St Gladesville NSW 2111 Australia Tel 61 (0)2 9817 2860 Fax 61 (0)2 9817 2860 Email
[email protected] Francis Buttle Macquarie Graduate School of Management Macquarie University Sydney NSW 2109 Australia Tel 61 (0)2 9850 8987 Fax 61 (0)2 9850 9019 Email
[email protected] ii Introduction The Executive Management Group at IGA thought this was a serious problem. It was late-2004, and although they were not fuel retailers themselves, they were facing intense competition for the grocery dollar from two retailer/fuel company alliances - the Woolworths-Caltex alliance and the Coles-Shell alliance. IGA (Independent Grocers Alliance) was founded in America in 1926.