Digital Business Analysis for Woolworths and Coles in Australia

Running head: DIGITAL BUSINESS ANALYSIS
DIGITAL BUSINESS ANALYSIS
Name of the Student
Name of the University
Author Note

1DIGITAL BUSINESS ANALYSIS
Table of Contents
Introduction....................................................................................................................2
About the companies......................................................................................................2
Industry analysis.............................................................................................................3
Analysis of the two issues..............................................................................................3
Solution provided to the two issues...............................................................................5
Control process used for the solutions...........................................................................6
Costs and timeline of the solutions................................................................................7
Role to be played by employees of Woolworths...........................................................8
Conclusion......................................................................................................................8
References....................................................................................................................10

2DIGITAL BUSINESS ANALYSIS
Introduction
The supermarket industry is Australia is being influenced in a huge manner by the
entry of various organizations. The levels of competition in the industry have also started
increasing in the few years with respect to the products that are offered to customers and the
prices as well. The international organizations have a huge influence on the prices of various
products and costs related to manufacture of products as well (Aguinis, Edwards and Bradley
2017). Aldi is an organization that is able to provide major levels of competition to the
various Australian supermarkets based on the variety of products as well. The report will be
based on the analysis of the impact that Amazon has on the major Australian supermarkets
like Coles and Woolworths. The reduction of revenues gained by the two organizations due
to entry of Amazon in the grocery industry will also be discussed in the report in detail
(Barrick et al. 2015).
About the companies
Amazon.com Inc. is a multinational American technology based organization that is
based in Seattle, Washington. The company mainly focusses on providing services related to
cloud computing, e-commerce, artificial intelligence and digital streaming. Amazon has
gained its position among one of the Big Four Technology based organizations along with
Apple, Google and Facebook. Amazon is well known for the disruption that the organization
has been able to form of the industries that are well-established in nature (Amazon.com
2019).
The plans related to entry of Amazon in the grocery industry of Australia has a major
impact on two major Australian organizations like Woolworths and Coles. The report will be
mainly related to the detailed discussion based on major issues that are being faced by
Woolworths due to the lower priced offerings of Amazon (Ibisworld.com.au 2019).

3DIGITAL BUSINESS ANALYSIS
Industry analysis
The growth of grocery market of Australia is predicted to amount to around 5.8
Billion Dollars within the year 2020. The huge growth is also based on the increase of online
grocery stores in the industry that have a major impact on the behaviour of consumers. The
retailers have also started strengthening the levels of investments that are made in online
shopping activities and organizations as well. Australia shoppers have also started shopping
from different channels that are available for them. The average levels of online basket in the
country have increased by up to three times due to the convenience that are being provided to
them (Ibisworld.com.au 2019). The lifestyles of Australian shoppers have been able to play a
major role in the growth that is experienced by the grocery market of the country. The high
usage of smartphones is considered to be a major factor that has an impact on the operations
of Australian grocery organizations.
The increasing usage of online shopping websites for fulfilling shopping needs of the
consumers is able to influence the organizations like Woolworths and Coles
(Ibisworld.com.au 2019). The usage of technologies in different services provided by the
grocery organizations include click-and-collect based solutions that are able to increase the
speed of shopping of the customers. The entry of online organizations in the grocery market
of Australia has however been able to enhance the levels of competition that are faced by the
physical retail organizations Coles and Woolworths. The market has been affected in a huge
manner by the convenience levels that are offered by the online retail based organizations
(Ibisworld.com.au 2019).
Analysis of the two issues
Amazon has been able to disrupt the operations of Woolworths in the Australian retail
organization in the modern competitive environment. Woolworths supermarkets is a grocery