Disrupting the giants: how independent grocers respond to the supermarket duopoly in Tasmania

Food retailing is an essential economic, social, and cultural activity, and an important part of local communities and regions. Small retailers contribute to their local areas through the provision of goods and employment opportunities, and they provide an alternative to large firms. Whilst collectively, small grocers make a significant contribution to local, state, and national economies, in a global market they face increasing challenges. Competition from large, multinational supermarkets has a significant impact on the ability of smaller operators to survive and prosper. Using case study methodology and the lens of Porter’s (1980, 1985) Competitive Advantage theory, this chapter examines the differentiation strategy of two successful small, independent grocery chains in Tasmania, Australia. The analysis will extend the use of the competitive advantage framework and make an important contribution to the field of small and independent grocery retailing by identifying strategies and practices that improve competitiveness and performance for such retailers.