Australian Supermarkets: Who will win & when?

Australian Supermarkets: Who will win & when?
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Australian Supermarket: Who will win and when?
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Australian Supermarkets: Who will win & when?
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Executive Summary
The Australian Supermarket Industry, dealing in groceries and food is one of the most toughly
competing industries in Australia. All the supermarkets are trying their best to make their
dominance in the market. This report involves a critical analysis of the strategies used by
Woolworths in order to achieve higher level of growth and development in its business. It
attempts to understand how the company’s external and internal environment conditions have
strengthened its marketing plans and other initiatives. We choose Woolworth Supermarket for
our Case study, how the company has used its strategies and won the grocery battle with its
fellow competitors (Jackson, 2012).
Purpose of the report
The report is focused on the critical strategic analysis of an organization, for which we have
selected Woolworths. Woolworths is an Australian Supermarket retailer and is one of the leading
players in the supermarket industry. The company has achieved greater heights in its growth and
development and there are various factors which comprehend its success. We shall focus on the
current business strategy that the company is following (Matsa, 2010).
Importance of the Purpose
The main purpose behind finding the business strategy of Woolworths is to analyze how
Woolworths struggled to come up to be the top supermarket in Australia and how are its other
competitors trying their best to make their place in the market.
Key Outcomes
Discussion on Strong leadership and accountability for Woolworths. Also, important
competencies that Woolworths used to add value to its strategic management practices
will be discussed.

Australian Supermarkets: Who will win & when?
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Contents
Contents......................................................................................................................................................3
Introduction.................................................................................................................................................4
Macro Environmental Analysis....................................................................................................................4
Industry analysis..........................................................................................................................................5
Porter’s Five forces Analysis........................................................................................................................5
Company analysis........................................................................................................................................7
Competitor Analysis....................................................................................................................................9
Strategy Analysis.........................................................................................................................................9
Recommendations.....................................................................................................................................10
Conclusion summary.................................................................................................................................11
References.................................................................................................................................................12

Australian Supermarkets: Who will win & when?
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Introduction
The supermarket and grocery industry are one of the most competitive industries in Australia.
The expansion of existing supermarkets and the entrance of new chains of supermarkets have put
all the companies to be in strong competition in order to make a dominance in the market. The
sudden rise of ALDI in Australia has led the industry giants Woolworths and Coles, to cut off
prices and make a global presence. Woolworths is one such supermarket industry who has
struggled and has managed to take a higher place in the market.
Woolworths is a public retail company, founded in 1924, is listed on top of Australian Stock
Exchange. It started its business from Sydney’s Imperial Arcade. Through its strong strategies
and processes, Woolworths has made itself accessible to over a large percentage of people. The
company’s marketing strategy aims to provide access to a wide range of products at reasonable
prices. This report aims at discussing macro environmental analysis, product, distribution,
company’s analysis, its resources, capabilities and core-competencies. The end of the report shall
determine the strengths and strategy used by the company so far to make itself well established
in the market.
Macro Environmental Analysis
The Australian supermarket Industry is a duopoly between Woolworth and Coles. The company
comprise 70% share of the market. Their main target is the household items, goods etc. to
capture major portion of the revenue. Salient trends in macro environment will be discussed and
how they will affect the profitability of Woolworth in future.
 Socio-cultural factors: - One of the major factors affecting the industry is the increased
consciousness of the people towards their health and wellbeing. Due to this, they are
moving towards organic products and some healthy alternatives. There are very less
companies that are offering organic products, so it’s a golden chance for Woolworth to
promote its industry and spread its market. It can increase its long term sales by
promoting various good strategies. Another factor would be the increasing number of
customers who are time poor. Changing age and population not only affects the location
decisions for a company but also has a major effect on the products available in the
market. More population growth will result in the construction and making of new
supermarkets.