Competitive Strategy 2022 Analysis

MANAGEMENT

COMPETITIVE STRATEGY 1
The process of summarizing, evaluating and analyzing the business environment of the
organization is called strategic management. It is essential for the organization to analysis the
macro or micro environment. There are various strategic tools in the organization to analyze the
business such as Resource Based View, PESTLE Analysis, SWOT Analysis, Value Chain
Analysis and the others. The company develops the strategy to achieve the objective in the
organization. It is required for the company to analyze the internal or external environment so
that the company develops the strategies to attain the higher level of success. The report is based
on strategic management tools of the business (Ansoff, Kipley, Lewis, Helm-Stevens, and
Ansoff, 2018). For the analysis, Woolworths has been taken into consideration to evaluate the
business environment. Although, there are numerous tools that an organization use to analyze the
factors that affects the growth but in this report, Porter’s Five Forces Framework, SWOT
Analysis, and Resource Based View will be discussed.
Woolworths is an Australian supermarket that offers the various services to consumer in store
chain. The company provides the all consumer goods to consumer. It has strong supply chain
network due to which it distribute the products or services in 100 stores across Australia. It has
been evaluated that the organization has 976 supermarkets within the convenience stores around
19. The stores are located in different locations with the similar logo of the company. The
company operates the business online with the name of “Home Shop” (Woolsworth, 2018a).
SWOT Analysis is a strategic framework that is used to evaluate the areas of strength,
weaknesses, opportunity and threat. It is a strategic tool which helps the organization to improve
the weakness by working on them so that the organization grabs the opportunity. This tool
examines the internal and external factors of the corporation. As per this tool, the areas have

COMPETITIVE STRATEGY 2
been identified such as weaknesses, opportunity, strength and threat due to which the
organization has can grasp the new opportunities by using their strength (Mind Tools, 2018a).
Strength: Strength defines the areas of capability of the company. In the case of Woolworths,
the main strength of the organization is its high brand image in the market. It has been evaluated
that the company also have high percentage of market share such as 34% in the grocery market
(Woolworths Group, 2018b).
Weaknesses: It refers to areas where the organization needs to improve. According to the
analysis of Woolworths, it is observed that the company has less presence in online market due
to which it is losing the large number of consumers. The other weakness of the company is its
price competition with its competitors as the similar companies offers the different prices to
consumers in order to attract them.
Opportunity: Opportunity refers the areas that the organization can grasp for future growth. In
the case of Woolworths, the organization has the opportunity to expand the business in online
market. It is observed that the organization can enter the new market with the merging or
acquisition methods as its financial position is better as compare to its competitors. The company
does not provide the credit services due to which the cash inflow and outflow is appropriate.
Threat: Threat states the risk that the company will face in future. Woolworths has high degree
of threat of competitors in the market as there are huge numbers of firms that provides the
similar services to consumers. It is also observed that the new entrants also has the chance to
enter the consumer goods industry as it requires less capital due to which the business has higher
degree of threat of new entrants.