Amazon Versus Woolworth Australia Assignment 2022

Running Head: AMAZON VERSUS WOOLWORTHS
Amazon versus Woolworths
Name of the student
Name of the University
Author’s note

AMAZON VERSUS WOOLWORTHS1
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Overview of the company............................................................................................................2
Key issues of Woolworths that needs to be resolved......................................................................4
Website not so friendly................................................................................................................4
Insufficient trained staff...............................................................................................................5
Timeline for the new strategy......................................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

AMAZON VERSUS WOOLWORTHS2
Introduction
The supermarket business is a powerful industry in the FMCG market. But the
supermarket and the grocery store have low profit margin as compared to other giants in the
market. The assignment gives details about the Australian supermarket Woolworth, which is
facing difficulty in the market due to the entry of the major player in the digital business,
Amazon. Amazon is an American multinational corporation with around 750,000 staffs
(Phillipov, 2016). This company mainly focuses on e-commerce and has even succeeded in
expanding its business through it. Amazon has decided to move in the Australian grocery market
to strive with Woolworths and Coles. The Amazon is trying to take over the market by reducing
price of the product lower than the Woolworths and other grocery chains. Due to this,
Woolworth is facing low market share. The objective of the paper is to build strategy for
Woolworth on how to prepare itself and compete with Amazon. There are many internal and
external issues mentioned about the Woolworths. The two chosen issues for improving the
operation of Woolworths in the market are not so user friendly websites and inefficient staffs.
The assignment aims at developing innovative solutions for Woolworths, so that it can cope up
with the issues.
Discussion
Synopsis of the company
Woolworth is an Australian built supermarket chain and also owns grocery stores which
is owned by Woolworth’s group. It was founded in 1924. Its product portfolio includes grocery,
bakery products, vegetables, home furnishing, cosmetics, baby care, kids wear, toiletries,

AMAZON VERSUS WOOLWORTHS3
confectionery, footwear and many more. It holds around 80% of market share in the FMCG
market but after the entry of Amazon it has fallen drastically (Gunjal, 2017).
The Woolworth is facing severe problem due to price war in the market. As its
competitor, Amazon is offering the products at almost half price than Woolworth. The
organisation was facing problem due to Coles, another supermarket chain in Australia. But its
problem has increased after the access of Amazon in the Australian market (Paull and Hennig,
2018). Woolworth is dealing with many internal and external problems that is making its growth
decline in front of Amazon. Some of the issues are:
Shareholder of Woolworths are worried about the falling market shares of the company
due to the rise of Amazon in the market. The company also has poor online customer service
because the company always has unhappy customers. Woolworths is also showing poor
performance online especially in the interacting with the customers and failing to turn them to
potential customers. The staffs of the organisation is not well trained to assist the business
online. As a result, this acted as an opportunity for its competitors like Amazon to take over the
digital business. The prices offered by the company is much higher than Amazon and
Woolworths is not being able to compete with the prices offered by Amazon. However,
Woolworths’s distribution channel is stronger than Amazon but it still cannot compete with the
giant. Due to the popularity of Amazon, the suppliers in Australia offers better products and at
reasonable prices than they offer it to Woolworths. Though the company holds 80% market share
but it has drastically declined along with its reputation in the market (Cameron et al., 2017). The
brand status of Amazon in the Australian marketplace is increasing day by day. The Woolworths
has to make strong move and build strategies that can help the company gain back its lost image
in the market.