Innovation And Sustainable business Development Assessment 2022

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[INNOVASION AND SUSTAINABLE BUSINESS DEVELOPMENT]
[Institute]

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EXECUTIVE SUMMARY
Woolworths is one of the most popular retail companies in Australia. The retail sector of
the nation is facing huge competition and due to this, Woolworths is working for identifying
some innovative and technologically advanced features which can retain and enhance its
customers. In context to this, the present study has been conducted which suggested the idea of
implementing Omni-channel. The feature is new to the retail industry and will enhance the
shopping experience of the consumers. Different methods and aspects such as business model,
value proposition, etc have been discussed properly for understanding the relation between new
idea and company. Apart from this, some uncertainties such as customer desirability, technical
feasibility, etc have been explained which company needs to handle while implementing the
idea. A phased development plan explained which has provided different steps for implementing
project and addressing the uncertainties. The company will target adults for informing them
about the new services and encouraging them to use it. Different innovation tools such as
business canvas model, disciplined entrepreneurship, market segmentation, etc have been
explained which Woolworths can use and implement its innovative idea.

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Table of contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................5
ASSESSMENT................................................................................................................................6
Business Proposal........................................................................................................................6
Business Model Description:...................................................................................................6
Value Proposition Development:.............................................................................................8
Business Operations Development:.........................................................................................8
Supply Chain Development:....................................................................................................8
Financial Value Capture..........................................................................................................8
Competitive Advantages..........................................................................................................8
Strategic Fit:.............................................................................................................................9
Identification and assessment of assumptions and uncertainties.................................................9
Customer Desirability:.............................................................................................................9
Technical Feasibility................................................................................................................9
Financial Viability...................................................................................................................9
Phased development plan to address uncertainties....................................................................10
Selection of innovation tools and techniques............................................................................10
Candid and critical self-analysis................................................................................................13
CONCLUSION AND RECOMMENDATIONS..........................................................................13
Recommendations:....................................................................................................................13
REFERENCES..............................................................................................................................14
APPENDIX....................................................................................................................................15

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INTRODUCTION
Combination of innovation and technology is highly profitable and effective for the
companies to survive in the market. However, it is not an easy task to think innovative and
creative according to the requirements and demands of the consumers. It is very important for the
organizations to conduct proper research and then start working on some new ideas (Bocken &
et.al., 2019). For the present file, Woolworths Limited, a popular retail company of Australia is
selected. The supermarket is offering different products to the customers but its stores are not
technologically advanced. In context to this, innovative and technologically advanced idea of
omni-channel is considered. The report includes business model description, value proposition
development and many more aspects. Along with this, the study consists of different
uncertainties, phased development plan and innovative tools and techniques.
ASSESSMENT
Business Proposal
Business Model Description:
Key Partners:
 Suppliers
 Media Partners
 Distributors
 Government
Key Activities:
 Selling and Marketing
 Producing
 Research and Development
 Sustainable development
 Innovation and creativity
 Product Differentiation

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Key Resources:
 Human resources
 Technological Resources
 Financial Resources
 And other resources
Value Proposition
 High quality and fresh products
 Creative marketing campaigns
 Huge variety of commodities
 Home Delivery
Customer Relations
 Strong brand image
 Effective customer care services (Sousa-Zomer & Cauchick-Miguel, 2019)
Revenue Steams
 Selling of fresh and high quality products to the customers
Customer segments
 Infants with the age group below 5 years
 Adults of from 6 to 17 years
 Customers above 55 years
 High income earners
Cost Structure
 Marketing cost
 Administrative cost
 Salary to the workers
 Taxes
 Cost related to production, material, etc

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Channels
 Online
 Woolworths Store
Value Proposition Development:
The idea of creating omni-channel will enhance the shopping experiences of the
customers. It will merge the online and offline means of shopping seamlessly, especially for the
mobile customers. This will be a new feature to the Woolworths store resulting to enhance its
value among the customers. It will make easier for the consumers to interact with the store and
receive everything they want (Loredo & et.al., 2019).
Business Operations Development:
In order to implement the idea of omni-channel, the firm will require human resources,
technical resources and financial resources. Woolworths will have to invest for integrating both
the channels effectively. Along with this, the store will have to train its workers so that they can
operate the channel effectively.
Supply Chain Development:
The supply chain management of Woolworths is very strong and effective. The company
will have to make it more appropriate and strong for delivering ordered products to the particular
users. Woolworths will have to integrate its supply chain to storefronts, online ordering
processes and distribution centers into an overarching platform.
Financial Value Capture
Woolworths will have to invest in the technology according to the budget planning. The
idea of omni-channel will enhance the number of customers for the company, resulting to
enhance its profit and sales. This innovative idea will increase the services of the store leading to
gain competitive advantages and increase the financial position (DiVito & Ingen-Housz, 2019).
Competitive Advantages
The idea of omni-channel is new to the supermarket chains and due to this, Woolworths
will gain competitive advantages. The company is already popular for providing fresh and high

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quality products to the customers. The feature of omni-channel will enhance the quality of
store’s services resulting to enhance the shopping experience of the customers.
Strategic Fit:
According to the present market competition and demands of customers for having
something new and beyond the expectations, the idea of implementing Omni-channel is
strategically fit. This strategy will grab the attention of customers, increase the sales and profit
margin of the company (Zorbas & et.al., 2019).
Identification and assessment of assumptions and uncertainties
Customer Desirability:
The desires of customers are changing rapidly nowadays. People are asking for
technologically advanced features which can provide them easy access, comfort and enjoyment.
Changing purchasing habits of the consumers can create issue for Woolworths as it can affect its
strategy of omni-channel. It is important for the organization to research properly regarding both
market and customers before working on the strategy, so that it will not face any financial loss or
any other issue (Xu & Lee, 2019).
Technical Feasibility
Woolworths is considering the idea of developing Omni-channel which requires
technology. Before implementing technology for accomplishing the objectives of new idea, it is
important for the firm to check its feasibility. Selection of wrong technology can result to affect
the entire process of implementing the strategy and suffer Woolworths from huge financial loss.
Apart from this, it is also necessary for the supermarket chain to train its employees regarding
the new technology so that they can use it properly (Phillipov, 2019).
Financial Viability
Implementation of innovative idea needs proper research and planning. Financial
planning is one of the important parts which Woolworths will have to consider in this idea. A
proper budget will avoid team members to waste the resources or enhance the cost. Otherwise,
use of resources inappropriately can affect the financial status of the company (O’Kane &
Pamphilon, 2019).

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Thus, all the above discussed uncertainties can affect the Woolworths’s idea of
implementing Omni-channel. It is necessary for the company to use effective approaches for
handling these uncertainties effectively.
Phased development plan to address uncertainties
Phased development plan for Woolworths so that it can address all the above discussed
uncertainties is described below:
Initialization: In this step of the plan, Woolworths will understand the project of implementing
Omni-channel in a higher and better way. The project team will collect and analyze information
related to resources required, technology, financial condition, working process and many more. It
will help in determining whether the selected technology is feasible for grabbing the attention of
consumers or not.
Planning: After getting new technology feasible, the project team will create plan for initiating
the project. This phase will include budgeting, quality management, risk management, Gantt
Chart, scope and many more other aspects. The plan will also inform team about the needed
resources, money and skills for finishing the project properly (Jie & Gengatharen, 2019).
Execution: After the second stage, the team will create deliverables at this stage for executing
the project. All the plans such as proper management, risk management, monitoring,
procurement, etc will be executed by the team. The project manager of the firm will conduct
meetings for getting updates related to the project, monitoring the performance of the team,
helping team in resolving their issues and many more.
Control: After execution of the new idea ie. Omni-channel, the project manager will monitor the
idea properly for checking mistakes and performance. If, in case any mistake is identified then it
will be handled properly for improving the quality and efficiency of the idea. The project will not
be called closed until unless it will not work according to the expectations.
Closing: At this stage, the project will be formed properly at right time and due to this, it will be
closed by the company (Li & et.al., 2019).

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Selection of innovation tools and techniques
Disciplined Entrepreneurship:
 Customer Acquisition: People are inclining towards technology as it makes their
shopping effective and interesting. The company will provide discounts, different offers,
schemes, etc to the consumers for inviting them to use new technology. Along with this,
Woolworths will use digital marketing and other marketing strategies for informing its
customers about the new service.
 Product Unit Economies: The firm will keep its prices low for inviting more customers.
The business canvas model will help Woolworths in knowing the present status and
selecting appropriate strategies (Paul & et.al., 2019).
 Overall Economies: Woolworths will invest on different areas such as research and
development ($40000) and technology ($35000) for achieving its objective of providing
new and better services to the customers.
 Design & Build: The company will keep the design easy and attractive so that customers
can use technology properly. Woolworths will also develop mobile application for
providing better services to the customers.
 Sales: Woolworths will use its supermarket stores and website for providing service of
Omni-channel to the customers.
 Scaling: The firm will provide this service in Australia only which will increase its
reputation, market position and sales (Song, Song & Sun, 2019).
Business Model: Business canvas model regarding the new idea of Woolworths is explained in
Appendix.
Porter’s Five force analysis: The below figure informs about the Woolworths’s market
information.
 Threat of new entrants: It is high in the market as new retailing firms bring innovation
and better ways of handling things. Increasing number of entrants can develop pressure
on the company.

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 Bargaining Power of Suppliers: It is medium in the market as the suppliers who are at
domination place with the help of their bargaining power can affect the work process of
Woolworths (Li & et.al., 2019).
 Bargaining Power of buyers: It is high in the market due to availability of various retail
companies in the nation. The customers can switch according to their requirements.
 Threat of substitute products: It is also high due to availability of different retail
companies. However, Woolworths is popular for its high quality and fresh products
which cannot be replaced.
 Competitive Rivalry: The competition among the retail firms of Australia is high.
Woolworths competitors include Coles, ALDI Einkauf, Costco and many more/
Competitive Position: The figure added in Appendix explained about the competitive position
of Woolworths in its retail sector. According to the figure, Woolworths is leading the retail
sector among its various competitors.
Value Chain Analysis: Woolworths’s value chain analysis is explained through figure added in
Appendix.
Quantify the value proposition: Implementation of Omni-channel will enhance the value of
Woolworths’s supermarket in Australia. This channel will be formed by integrating both online
and offline platform. The customers entering into the stores will find sales associated with the
mobile phones which will be available for providing them on-the-spot accurate information.
These mobile phones will also be used as cash register. All these features of the strategy will
enhance the experience of the consumers resulting to provide value to the firm (Woolworths
Group. 2019).
Market Segmentation: After implementing the strategy of Omni-channel, Woolworths will
target the adults of age group 20 to 40 who knows to access technological devices. Along with
this, the firm will target the technology-based retail market for grabbing the attention of
customers.
Set the Pricing framework: Woolworths will keep the price of supermarket low for inviting
more and more customers and making them to use the technology. Penetration pricing strategy

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will be use by the company. This will make company to promote its services effectively and
making individuals addict of it. After certain period of time, Woolworths will enhance its prices
for gaining profit.
Candid and critical self-analysis
After completing the assessment, I conducted self-analysis for identifying my strengths
and weaknesses. I found that I have knowledge of technological field but this study enhanced my
knowledge by informing me about a new technology. Along with this, I was weak at innovative
and creative thinking but this project made me to brainstorm which developed innovative
thinking in me. However, I need to improve it for my future enhancement. The assessment
makes me realize the importance of innovative thinking and technological knowledge in the
present time.
CONCLUSION AND RECOMMENDATIONS
Thus, from the above study, it is concluded that Woolworths is offering fresh and high
quality food products to the customers. The company is working well in the retail sector of
Australia. But in this highly competitive environment, it is necessary for the firm to maintain its
market position and brand reputation among the customers. In context to this, Woolworths have
decided to implement innovative idea of Omni-channel. This idea will make firm’s supermarket
technologically advanced and enhance the shopping experience of the consumers. Different
innovation tools such as business canvas model, market penetration, etc will be used by the
company for implementing the idea.
Recommendations:
Some of the suggestions which Woolworths need to follow are as:
 The firm needs to conduct market research properly before implementing the idea for
avoiding any loss.
 The company should provide proper information about the new technology to its
employees for enhancing their career opportunities and motivating them to use it.

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REFERENCES
Bocken, N., Ritala, P., Albareda, L., & Verburg, R. (Eds.). (2019). Innovation for Sustainability:
Business Transformations Towards a Better World. Springer.
Desai, C. (2019). Strategy and Strategic Management. In Management for Scientists (pp. 65-84).
Emerald Publishing Limited.
DiVito, L., & Ingen-Housz, Z. (2019). From individual sustainability orientations to collective
sustainability innovation and sustainable entrepreneurial ecosystems. Small Business
Economics, An Entrepreneurship Journal.
Haas, Y. (2019). Developing a generic retail business model–a qualitative comparative
study. International Journal of Retail & Distribution Management.
Jie, F., & Gengatharen, D. (2019). Australian food retail supply chain analysis. Business Process
Management Journal, 25(2), 271-287.
Jocevski, M., Arvidsson, N., Miragliotta, G., Ghezzi, A., & Mangiaracina, R. (2019). Transitions
towards omni-channel retailing strategies: a business model perspective. International
Journal of Retail & Distribution Management, 47(2), 78-93.
Li, R., Li, Y., Liu, H., & Huang, Q. (2019, January). Cross-Channel Integration and Customer
Retention in Omnichannel Retailing: The Role of Retailer Image and Alternative
Attractiveness. In Proceedings of the 52nd Hawaii International Conference on System
Sciences.
Li, Y., Li, G., Tayi, G. K., & Cheng, T. C. E. (2019). Omni-channel retailing: Do offline retailers
benefit from online reviews?. International Journal of Production Economics, 218, 43-
61.
Lim, S. F. W., & Winkenbach, M. (2019). Configuring the Last-Mile in Business-to-Consumer
E-Retailing. California Management Review, 61(2), 132-154.
Loredo, E., Lopez-Mielgo, N., Pineiro-Villaverde, G., & García-Álvarez, M. T. (2019). Utilities:
Innovation and sustainability. Sustainability, 11(4), 1085.

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Morgan, R. (2018). Woolworths increases lead in $100b+ grocery war. Web. Retrieved From:
http://www.roymorgan.com/findings/7537-woolworths-increases-lead-in-$100b-plus-
grocery-war-201803230113 on 13th October 2019
Nakandala, D., & Lau, H. C. (2019). Innovative adoption of hybrid supply chain strategies in
urban local fresh food supply chain. Supply Chain Management: An International
Journal, 24(2), 241-255.
O’Kane, G. M., & Pamphilon, B. (2019). ‘My Lifestyle Kind of Locks Me into Supermarket
Shopping’: Narratives of Reflexivity and Routines from Supermarket Shoppers in
Australia. Journal of Hunger & Environmental Nutrition, 1-16.
Paul, J., Agatz, N., Spliet, R., & De Koster, R. (2019). Shared Capacity Routing Problem− An
omni-channel retail study. European Journal of Operational Research, 273(2), 731-739.
Phillipov, M. (2019). Supermarkets, television cooking shows, and integrated advertising: New
approaches to strategic marketing and consumer engagement. In Case Studies in Food
Retailing and Distribution (pp. 255-265). Woodhead Publishing.
Song, G., Song, S., & Sun, L. (2019). Supply chain integration in omni-channel retailing: a
logistics perspective. The International Journal of Logistics Management, 30(2), 527-
548.
Sousa-Zomer, T. T., & Cauchick-Miguel, P. A. (2019). Exploring business model innovation for
sustainability: an investigation of two product-service systems. Total Quality
Management & Business Excellence, 30(5-6), 594-612.
Woolworths Group. (2019). Web. Retrieved From: https://www.woolworthsgroup.com.au/ on
13th October 2019
Xu, E., & Lee, T. (2019). Supermarket magazines and foodscape mediation in
Australia. Communication Research and Practice, 1-14.
Zorbas, C., Gilham, B., Boelsen‐Robinson, T., Blake, M. R., Peeters, A., Cameron, A. J., ... &
Backholer, K. (2019). The frequency and magnitude of price‐promoted beverages
available for sale in Australian supermarkets. Australian and New Zealand journal of
public health.

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APPENDIX
Business Canvas Model:
Key Partners
 Technolo
gy
partners
 Media
 Suppliers
 Distributo
rs
Key Activities
 Sales and
Marketing
 Innovation
 Research
and
Developme
nt
Value
Proposition
 Use of
advance
d
technolo
gy
 Integrate
d online
and
offline
channel
Customer
Relationships
 Positiv
e Brand
Image
 Effectiv
e
custome
r case
service
Customer
Segments
 Adults
 Individua
ls who
love to
access
technolog
ical
services
 Elder
people
Key Resources
 Technical
services
 Human
resources
 Financial
resources
 Technologi
cal
resources
Channels
 Online
 Tesla
Showro
oms

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Cost Structure
 Marketing Cost
 Administrative cost
 Cost related to material,
production and many more
 Salary to the employees
 Taxes
Revenue Streams
 Innovative idea
 Better channel resulting to enhance shopping
experience of customers
Disciplined Entrepreneurship:
Customer Acquisition
 Marketing strategies
 Discounts, offers and
schemes
Overall Economies
 Research and
Development
 Technologies
Design & Build
 Attractive design
 Easy to access
application
Product unit economies
 Budgeting
 Low price (Penetration
Pricing strategy)
Sales
 Online
 Woolworths
Supermarket
Scaling
 Increase in profit
resulting to business
expansion
Competitive Position: The below figure represents the competitive position of Woolworths with
respect to its fresh groceries and total products.

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Figure 1: Competitive Position of Woolworths
(Source: Morgan, 2018)
Value Chain Analysis:
 In-bound Logistics: The company’s in-bound logistics include the following
 Operations: The different operations of company are:

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 3. Marketing and Sales: The major activities included in this factor of value chain are as
follows:
 Resources and Capabilities: Below are the significant resources and capabilities of
company:

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