International Business - Countdown-Woolworths Group

Running head: INTERNATIONAL BUSINESS
International Business
- Countdown-Woolworths Group
Name of the Student
Name of the University
Author Note

1INTERNATIONAL BUSINESS
Introduction:
International collaborations are alliances or partnerships between two or more
organizations (profit or non profit) from more than one country with the aim of fostering
development of the allied organizations though a collaborated effort, sharing of knowledge
and information as well as resources. The collaborations help the organization by utilizing the
strengths of each of the participating organization in a way that can support the collaboration
or alliance (Ganotakis & Kafouros, 2015). The collaborations can also help foreign
companies to enter into a new market, increase the product sales, increase their profits,
achieve a competitive advantage, secure a stable supply of raw products, reduce vulnerability
of the business and incorporate diversity through the collaboration with a local organization.
In such kind of collaboration, the local partner can support the organization with their
knowledge and experience in the local market while the international partner can provide
resources, knowledge and help in the diversification and growth of the alliance (Melander &
Lakemond, 2014; Luzzini et al., 2015).
Countdown-Woolworths Group is an International collaboration between two
companies, Countdown supermarket based in New Zealand and Woolworths Group based in
Australia. This collaboration have let to the setup of Countdown supermarkets which operates
across New Zealand with a total of 180 stores and is a subsidiary of Woolworths Limited.
This collaboration also have allowed the Countdown to develop itself as the biggest
supermarket chain in New Zealand, having the maximum number of stores in the countries
and outcompeting its competitors such as Four Square. This alliance was formed in 2005
when Woolworths NZ was purchased from Foodland Associations Limited by Woolworths
Limited (Australia), followed by the rebranding of the Foodtown and Woolworths Stores to
Countdown Stores in 2009 (woolworthsgroup.com.au, 2018).

2INTERNATIONAL BUSINESS
The aim of the study is to analyze this collaboration to understand how and why the
collaboration has increased the organizational effectiveness, the different issues faced while
developing the collaboration, feasibility of the collaboration and any alternative exit to the
collaboration.
Discussion:
-HOW and WHY this collaboration will increase organizational effectiveness.
The collaboration between Countdown and Woolworths have helped to increase the
organizational effectiveness of the Countdown Stores across New Zealand and helped it to
grow to become the biggest supermarket chain in the country (woolworthsgroup.com.au,
2018). Discussed below is how and why this collaboration has helped to increase the
organizational effectiveness:
Implementing Innovation:
The collaboration have enabled the implementation of innovative ideas such as digital
business to support organizational effectiveness and make the business transactions easier
and more seamless. The Countdown stores have implemented the WooliesX which is a new
digital arm of Woolworths which combines digital business strategies with e Commerce,
customer experiences and customer services. This have enabled the company to make more
than AUD 1 billion in sales helping them to service 6.2 million orders (between 2017 and
2018) with a promising growth rate of 30%, thereby supporting better organizational
effectiveness (Mortimer & Milford, 2018; woolworthsgroup.com.au, 2018).
Increasing value for shareholders:
Between 2017 to 2018, the organization was able to make a total return of 22.4% of
their profit to the shareholders, thereby helping to increase the value for the shareholders.

3INTERNATIONAL BUSINESS
This was enabled by an improvement of the financial performance of the organization after
the collaboration and expansion. The profits helped in the increase in the share price of the
organization, thus showing an improvement in the organizational effectiveness
(woolworthsgroup.com.au, 2018; Parkinson, 2018).
Creating better experience for the customers:
The collaboration has helped to improve the experience of the customer mainly
because of the following reasons. Firstly the collaboration have allowed sharing of
knowledge between Woolworths and Countdown through better customer loyalty programs
and customer services implemented across the Countdown Stores. Secondly, involvement of
effective customer relations team from Woolworths has supported better customer
experience. This has provided the customers a convenient, personalized and a connected
shopping experience, thereby making it a highly successful collaboration in the New Zealand
market (woolworthsgroup.com.au, 2018; Gupta & Singh, 2015).
Evolving the Endeavour Drink Business:
The collaboration has allowed a significant growth to the drinks segment of
Countdown through an evolution in the business. The collaboration has allowed growth in
sales of the organization thereby supporting the growth of the organization through effective
marketing strategies and addresses the changing habits and choices/preferences of the
customers. This has also helped the organization to stay ahead of the competition
(woolworthsgroup.com.au, 2018; Biddle, 2016).
Portfolio Value:
The sharing of resources between Woolworth and Countdown has enabled a reduction
of the prices of more than 4000 products across the supermarket chain. The collaboration has