Strategic Development Model for Woolworths: PESTLE, SWOT and Porter's Generic Strategies

Competitive
strategy

Competitive Strategy 1
Strategic development is a fundamental to creating and running a business. Strategic
management is the procedure of analyzing, evaluating and implementing the environment of the
business (Rothaermel, 2015). It is required for the organization to implement the strategies at the
workplace to achieve the goals. It is important for the company to analyze the business
environment before implementing the strategies at the workplace to attain the strategic goals.
The numerous strategic tools are used by the businesses to analyze the environment of market
such as PESTLE Analysis, VRIO Framework, Porter’s generic strategy and the others. In this
paper, the discussion is made on the topic of strategic development model (Ansoff, Kipley,
Lewis, Helm-Stevens, and Ansoff, 2018). In the discussion, the uses and importance of these
models will be analyzed with the help of practical example of business. For the analysis,
Woolworths has been taken into consideration to analyze the business environment. Woolworths
is a supermarket of Australia which delivers the services of store chain. The company operates
the business with the 100 stores across Australia. It is observed that the organization has 976
supermarkets with the 19 convenience stores that carrying the same logo. The businesses operate
the online business with the name “Home Shop” (Woolsworth, 2018a).
There are strategic development tools that are used by the business to analyze the business
environment such as VRIO Framework, PESTLE Analysis, SWOT Analysis and the others. In
this paper, PESTLE Analysis, SWOT Analysis and Porter’s Generic Strategies are used to
analyze the business environment of Woolworths.
PESTLE Analysis is a tool that is used to analyze or monitor the macro-environmental factors
that impact the performance of an organization. It is essential for the business to analyze the
environment of the new market so that it can enter the new market (Dobbs, 2014). This tool

Competitive Strategy 2
helps to analyze the environment in the context of political, social, legal and the others. PESTLE
is stands for Political, economic, social, technological, environmental and legal factors.
(Source: B2U, 2019)
Political-The policies developed by the government of Australia influence the retail companies
for expansion of business at the worldwide level such as Federal Government of Australia
introduce the competition policy for high competition. The retail companies has high political
pressure due to which the chances of faces the risk is high.
Economic-It has been found that the market of Australia is declined in economic terms due to
which the willing power of consumers is affected.
Social-Woolworths build strong relation with their suppliers as they provide many services to
consumers. It has been seen that the people of Australia use the smartphones in their free times
even in matters of shopping. But it is observed that the company has less presence in the online
market due to which it faces the issues.
Technological- Australia is the developing country in terms of advance technology. Woolworths
also use the green refrigerator in order to protect the environment. The use of advance
technology also improves the quality of product (Nandonde, 2019).The company used the SAP
technology in order to maintain the inventory record so that the risk of fraud is reduces.