Resources of the Woolworths Assignment

DIGITAL BUSINESS
STUDENT DETAILS
STUDENT DETAILS

BUSINESS STRATEGY 1
Table of Contents
Overview of the issue.................................................................................................................2
Resources of the Woolworths....................................................................................................2
Internal and external issues that need to be solved....................................................................4
Worried shareholders:............................................................................................................4
Insufficiently trained corporate staff:.....................................................................................5
Woolworths offers goods at high prices then the Amazon........................................................7
References..................................................................................................................................8

BUSINESS STRATEGY 2
Overview of the issue
In Australia, Woolworths is facing adverse issues due to the entry of Amazon in the
supermarket field. As Amazon is creating hindrance for other supermarkets in the country
because Amazon is offering goods at low prices and also ensuring better customer experience
that is attracting a lot of the buyers in an effective and efficient way. Due to this, Woolworths
is facing a major dilemma because there are losing consumer which is putting an adverse
effect on the profitability of the company. Apart from this, Woolworths is also concern that it
is possible that their potential supplier may move with Amazon because the company can
offer better terms to them. At the starting of 2018, Amazon has less than 1% of the online
food and grocery market but due to its strategic decision making for attracting customers, the
company has grown by 39.7% in the last 12 months. Currently, there are more than 2500
products listed on the website of the company. Amazon offers various discounts and offer
products at low prices than the price of supermarkets. This is the reason that successfully
attracts lots of consumers with them.
Resources of the Woolworths
Currently, in Australia Woolworths have more than 995 stores and they have 115,000
working professionals. The company's resources can be classified into three main categories
such as human resource, intangible resources and their stores. First, human resources, the
average pay of the employees depends upon their position. For example: average pay of the
Woolworths employees lies from $38,261 per year for Customer Service Supervisor to
$87,469 per year for Store Manager. The company also have incentives policies for keeping
their workers motivated (Hall & Druce, 2020). Now, in order to deal with the risen
competition through Amazon, the company should focus on strengthening its workforce in an
effective and efficient way. Their workforce will help them to achieve operational excellence

BUSINESS STRATEGY 3
and if they effectively train their workforce then they have the potential to deliver great
customer experience (Azeem, Baker, Villano, Mounter & Griffith, 2018).
Second, intangible assets, the company has a good reputation in the market of
Australia. The company named as Australia's most valuable brand which is valued at
$11.8billion. The net worth of the company is more than the Telstra and Coles supermarket.
Apart from this, the ALH group has 25% holding in the company (Hall & Druce, 2020). Even
the annual survey of 2017 shows that the Woolworths is the leading supermarket which is
trusted by over 4million customers. Now, the company has a great brand reputation in the
market so the management can utilize this goodwill to attract their existing and new buyers
towards themselves by offering them products at low prices. Here, the major concern is that
the company already selling goods at the lowest possible price (Yeow, Soh & Hansen, 2018).
Now, if they drop more prices then it will impact the profitability of the association. Thus, is
it suggested that the company should start selling goods at the break-even profits of next
quarter and between this time, the management should focus on making more strong
relationships with the suppliers so that the company can get goods at lower prices than now
(Bailey, 2017).
Third, currently, there are 995 stores of the company in Australia which is situated at
the prime locations of the country such as Morley WA, Kalgoorlie WA, Darwin City, Roxby
Downs, etc. The company has stores at great locations that can be easily accessible by the
customers. Now, it is suggested that the company should start the home delivery services to
the nearby locations because Amazon's online supermarket also has the same feature to door-
step delivery of the goods (Sullivan & Gouldson, 2017). This feature of Amazon is helping
them to reduce the store maintenance cost, however Amazon has to bear the warehouse
maintenance cost (Calvo-Porral, Medín & Losada-López, 2017).