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clock Created with Sketch. 27/07/17
09:40
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Originally posted by crystalblue
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Yes, AUS growth rate is declining, however as with any successful new business, it is very easy to grow in the beginning but as the company itself becomes bigger & bigger it gets harder & harder to grow at the same rates. As an investor it is the magnitude not NEWER SMALLER game over for SFI immediately. The true is, smaller players do not dictate the pricing of larger players (or have very limited ability), when in reality the opposite is true (ie. a bigger player with deeper pockets can strategically squeeze out smaller players).a decade of growth in Australia that Aldi had proven it can survive and pose a threat to Coles & Woolies. Once Aldi grew big enough to challenge Coles & Woolies, both dominant players had to respond by restructuring their prices & services.
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Your Aldi v Coles and woolies analogy doesn't really compare imo as the two big guys used there dominance to squeeze the margins of their suppliers to maintain their margins. Who is NEA going to squeeze?(assuming SFI does gain traction which isn't a gimme)
