Business Level Strategy Management

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author note

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Table of Contents
Post 3..........................................................................................................................................2
Introduction to Internal Analysis...........................................................................................2
Differentiate and Evaluate Key Resources, Capabilities and Core Competencies of
Woolworths............................................................................................................................2
Identification of Strengths and Weaknesses..........................................................................3
Conclusion..............................................................................................................................4
Post 4..........................................................................................................................................4
Introduction to Business Level Strategy................................................................................4
Evaluation of Key Business Level Strategy of Woolworths with Value Chain Analysis.....5
Conclusion..............................................................................................................................6
References..................................................................................................................................7

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Post 3
Introduction to Internal Analysis
VRIO falls in the internal kind of analysis which is considered to be the framework in
evaluating regarding the different resources as well as capabilities of the firm. VRIO is the
acronym from the initials of the names of the different dimensions of evaluation which
means: Value, Rareness, Imitability and Organizational Capability. It is the major framework
which provides a brief overview on evaluating the resources for the firm which will be
effective for providing competitive advantage (Vargas-Hernández & Garcia, 2019). VRIO
Analysis assists the different companies such as Woolworths in understanding the sources
through which the competitive advantage can be gained and it will be enabling the firms to
exploit different opportunities or defend against threats.
Differentiate and Evaluate Key Resources, Capabilities and Core Competencies of
Woolworths
While conducting the internal analysis, the VRIO analysis is the suitable approach
which can be incorporated by Woolworths for determining the sustainable competitive
advantage.
Woolworths V R I O Competitiv
e
Advantage
Reputation or
the Brand
Image
    Sustainable
level of
Competitive
Advantage
Local Plan for
Sourcing
 - -  Competitive
Kind of
Parity
Online
Presence
 -   Temporary
Level of

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Competitive
Advantage
Loyalty
among
Customers
    Sustained
Level of
Competitive
Advantage
From the respective table of the VRIO analysis, the key elements of the Woolworths
for gaining competitive advantage has been analyzed. Woolworths has been considered to be
the most reputed brand in the country and they can capitalize the different resources as well
as capabilities for avoiding the competitors catching up (Purshouse et al. 2017). In
comparison to the other competitors, Woolworths have been successful in winning online
presence battle through providing the superior online experience to the different customers by
introduction of the “Self-Checkout System” which helped them in continuously improving
their online offerings (Woolworths.com.au, 2019).
Identification of Strengths and Weaknesses
From the VRIO Analysis, the different strengths which have been identified are the
loyalty among the different customers along with brand reputation of the company. On the
contrary, the weaknesses include the online presence as it is not rare and the different
competitors such as Coles follow the similar strategy which provides temporary competitive
advantage that can affect growth of firm negatively in contrast to other competitors
(Woolworths.com.au, 2019). In the present scenario, the online grocery trends are increasing
at a rapid speed, and in such scenario, the online presence of Woolworths can be suitable for
them in improving their effectiveness and it causes the competitive rivalry that will be
effective aspect for succeeding in the market.

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Conclusion
Therefore, it can be inferred that VRIO Analysis is the most suitable aspect which has
been adopted by Woolworths for understanding their core competencies, rareness or the
weaknesses that affects their growth in comparison to Coles or the other retail stores which
are the major competitors. With the brand value of $8 Million, Woolworths has been
considered to be the largest retailer in Australian market and it has assisted them in gaining
maximum loyalty among customers and value appropriately.
Post 4
Introduction to Business Level Strategy
The business level strategy is the course of the actions or the proper set of different
decisions which helps in assisting the companies in attaining the detailed objectives of the
business. In the case of business, it is considered to be the long-range type of sketch which is
related to the desired image, destination and direction. It is considered to be the scheme of the
different corporate action and vision, which is planned carefully which has been designed for
achieving the effectiveness along with gaining the command over the respective situation
(Pulaj, Kume & Cipi, 2015).

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Evaluation of Key Business Level Strategy of Woolworths with Value Chain Analysis
Figure 1: Value Chain Analysis of Woolworths
(Source: Omsa, Abdullah & Jamali, 2017)
From the value chain analysis of Woolworths, it can be seen that Woolworths has
adopted is local food sourcing strategy for enhancement of the development and growth of
the different local firms. Moreover, it has been analyzed that Woolworths indicates the fact
that they have the proper long-term commitment for building internal capability wherein they
try to employ diverse group of individuals within the database of the employees which assists
them in achieving the different strategic goals sustainably. In addition, the infrastructure of
the firm has been excellent that has been suitable for them in gaining the competitiveness in
the market that has helped in growth and efficiently serving the different customers
appropriately (Knott, 2015).
In addition, as to reach to the target audiences in the market, it can be seen that value
chain of Woolworths involve in the different activities such as outbound logistics wherein the
different goods are dispersed among the different stores as well as providing the different

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services to the different customers which helps in acknowledging the added value offered by
Woolworths and help the customers in finding the different goods and services accordingly
(Bertozzi, Ali & Gul, 2017). Through the proper enhancement of the business activities, it
can be suitable for enhancing the value which can be appropriate for understanding the needs
of customers which will be suitable for enhancing the effectiveness and provide supportive
services to them (Hernández & Garcia, 2018).
Furthermore, the cost-leadership strategy is the most appropriate business level
strategy that has been adopted by Woolworths for meeting the different demands of the
customers. The supportive supply chain and IT infrastructure are the two key elements which
assists in meeting different objectives and it cannot be duplicated by the different other
retailers present in the market as it mainly depends on the resources or capabilities
(Woolworths.com.au, 2019).
Conclusion
Therefore, from the help of the value chain analysis of Woolworths, it can be
concluded that the main business level strategy is cost-leadership approach which has
enhanced them in managing the growth. The competitive rivalry is the most common aspect
in retail sector of Australia and in such situations, Woolworths faces the intense kind of
competition from existent as well as new players. However, the proper infrastructure and
ethical sourcing policy are the two major aspects which has been suitable for them in
becoming more competitive and improve their presence appropriately as well.

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References
Bertozzi, F., Ali, C. M., & Gul, F. A. (2017). Porter’s five generic strategies; A case study
from the hospitality industry. International Journal For Research In Mechanical &
Civil Engineering (ISSN: 2208-2727), 3(2), 09-23.
Hernández, J. G. V., & Garcia, F. C. (2018). The link between a firm´ s internal
characteristics and performance: GPTW & VRIO dimension analysis. Revista de
Administração IMED, 8(2), 222-235.
Knott, P. J. (2015). Does VRIO help managers evaluate a firm’s resources?. Management
Decision, 53(8), 1806-1822.
Omsa, S., Abdullah, I. H., & Jamali, H. (2017). Five Competitive Forces Model and the
Implementation of Porter’s Generic Strategies to Gain Firm Performances.
Pulaj, E., Kume, V., & Cipi, A. (2015). The impact of generic competitive strategies on
organizational performance. The evidence from Albanian context. European Scientific
Journal, 11(28).
Purshouse, H., Rutkowski, J., Velis, C., Rutkowski, E., Da Sılva Estevam, V., & Soares, A.
(2017). Waste sorting social technology in brazilian informal materials recovery
facilities. In 15th International Conference on Environmental Science and
Technology. CEST, Rhodes (pp. 1-7).
Vargas-Hernández, J. G., & Garcia, F. C. (2019). The Link between a Firm´ s Internal
Characteristics and Performance: GPTW & VRIO Dimension
Analysis. REBRAE, 12(1), 19-30.

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Woolworths.com.au (2019) Woolworths Supermarket - Buy Groceries Online (online)
Retrieved from https://www.woolworths.com.au [Accessed on 23rd August 2019]