Impact of Competitive Analysis on Retail Industry and Woolworths
Verified
Added on 2023/06/08
|7
|930
|285
AI Summary
This report analyzes the impact of competitive analysis on the retail industry and Woolworths. It includes an overview of Woolworths, Porter's Five Forces Model Analysis, and recommendations for Woolworths to become more competitive.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Running head: STRATEGIC MANAGEMENT Strategic Management Name of the Student Name of the University Author note
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
1STRATEGIC MANAGEMENT Executive Summary The report has helped in understanding the impact of the competitive analysis on the retail industry along with on Woolworths retail company. Furthermore, there are different inter- connectedness between the different forces which have been analysed along with the recommendations and implications have been analysed.
2STRATEGIC MANAGEMENT Table of Contents Introduction of Industry Analysis..............................................................................................3 Overview of Woolworths...........................................................................................................3 Purpose of Analysis....................................................................................................................3 Inter- connectedness of different aspects Porter’s Five Forces Model Analysis.......................3 Overall Impact on Woolworths and Retail Industry..................................................................5 Conclusion..................................................................................................................................5 References..................................................................................................................................6
3STRATEGIC MANAGEMENT Introduction of Industry Analysis The report helps in analysis of the industry analysis with the usage of Porter’s Five Forces Model Analysis. Furthermore, the interconnectedness with the different aspects have to be identified and analysed effectively as well. Industry analysis is one of the essential business functions which is completed by business owners along with individuals as to assess the current business conditions effectively. Overview of Woolworths Woolworths is Australian supermarket which was founded in the year 1924 and the revenue which has been earned by the company is 3655.93 crores and the number of employees working in the organization is 1,11,000 and the number of locations which is being served by them is 995 till the year 2017 (Woolworths.com.au, 2018). Purpose of Analysis Porter’s Five Forces Analysis helps the organizations in understanding the different threats in the industry and they can shape themselves accordingly. Inter- connectedness of different aspects Porter’s Five Forces Model Analysis Figure 1: Porter’s Five Forces Model
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
4STRATEGIC MANAGEMENT (Source:Yunna & Yisheng, 2014) Threat of New Entrantsin the food and retail sector brings new innovation and new ways of performing things. This will be creating pressure on Woolworths as the other entrants can provide same products at lower price and there are different other barriers (E. Dobbs, 2014). Woolworths need to tackle by innovating new products along with building economies of scale. Furthermore, building capacities along with spending money on the research and development effectively. Bargaining power of the suppliersis the other element in which there are numerous suppliers from whom the raw materials can be purchased. The suppliers in dominant kind of position can reduce the margins of Woolworths and this will lower profitability as well. Woolworths needs to tackle by building efficient supply chain with multiple number of suppliers. Development of the suppliers is essential who will help in providing the different kinds of essentials to the firm and the retail industry (Yunna & Yisheng, 2014). Bargaining power of buyersis the element in which buyers demand various products and they will choose the ones wherein best offerings are available at cheap prices. This will create pressure on profitability in long-run. In case of Woolworths, this is essential in nature tobuildlargenumberofcustomerbaseandrapidlyinnovatenewkindofproducts effectively. Threats of Substitute Products or Servicesis the element wherein there are similar kinds of products which are being sold by the company to the customers in the market who is able to meet similar demands of the customers effectively. Woolworths is under pressure and this is solved by increasing switching cost for the different customers and being more service oriented and not just product oriented (Yunna & Yisheng, 2014).
5STRATEGIC MANAGEMENT Rivalry among the Existing Competitorsis wherein there can be rivalry among existing players and is intense in nature and this decreases overall profitability of firm. Woolworthsneedtotacklebybuildingsustainabledifferentiationstrategy(Yunna& Yisheng, 2014). Overall Impact on Woolworths and Retail Industry With analysis of the porter’s five forces model, a complete picture can be gained in which this is seen that there are game changing trends and this exploits the emerging opportunity in retail industry. By analysis of the same, Woolworth’s managers need to shape such forces in their favour. Conclusion Therefore, this can be concluded that Porter’s Five forces analysis is essential which is required to be conducted by Woolworths and the other retail companies in industry as to shape their company in accordance to five forces and this will help them in becoming more competitive in nature.
6STRATEGIC MANAGEMENT References E. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry analysis templates.Competitiveness Review,24(1), 32-45. Mathooko, F. M., & Ogutu, M. (2015). Porter’s five competitive forces framework and other factors that influence the choice of response strategies adopted by public universities in Kenya.International Journal of Educational Management,29(3), 334-354. Woolworths.com.au (2018). Retrieved fromhttps://www.woolworths.com.au/ Yunna, W., & Yisheng, Y. (2014). The competition situation analysis of shale gas industry in China: Applying Porter’s five forces and scenario model.Renewable and Sustainable Energy Reviews,40, 798-805.