Analysis of Woolworths: Business and Strategic Management

8/17/2019
Running Head: MANAGEMENT 0
Business
Management
and strategic
management

MANAGEMENT 1
Table of Contents
Introduction................................................................................................................................2
Macro-environment analysis..................................................................................................2
Industry analysis.........................................................................................................................4
Internal analysis.........................................................................................................................5
Resources...............................................................................................................................5
Capabilities.............................................................................................................................6
Core competencies.................................................................................................................7
Strengths and Weakness.........................................................................................................7
Business level strategy...............................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

MANAGEMENT 2

MANAGEMENT 3
Introduction
Woolworths is one of the Australia leading superchain with having 900 plus stores
situated across the country. The company is known to be providing best quality products in
synchronization to high integrity and with collaborations with various farmers. The first
Woolworths store was incorporated in 1924 in Sydney and in 2007, the organisation opened
its first “Green” supermarket that strategizes for minimising the use of materials causing
environmental harm. Woolworth revenue was increased by 12.5 percent in the year 2018
(Blake, 2018). In addition, it is also forecasted that Australian grocery stores and supermarket
will experience yearly revenue growth of 1.8% by 2022.
In terms of size, Woolworth includes 31 per cent of market share in retail. The
company is also known to be as one of the major contributors into the Australian economy
creating $53 billion or 4.1 percent of GDP of the nation (Knox, 2014). The company is
serving in the markets of both Australia and New Zealand. Woolworths mostly specialize in
selling groceries health and beauty products and various household products. This makes the
company as one of the Australia largest supermarket chains with ensuring the best products
available to the customers.
Macro-environment analysis
In Australia, the Supermarket and Grocery sector is one of the most fiercely
competitive sector that can influence Woolworth competitive strength. The external
environment factors in Australia Supermarket and Grocery sector are identified using the
Pestle model –
Political factors – It includes various political control and government regulations imposed
on the trade of business. An entry barrier is created in the business due to duopolistic nature
in the industry as of Coles and Woolworth. Hence, to offer equal chance to new players,
many regulations are being laid down by the Australian Competition and Consumer
Commission strengthening various rules on Woolworths in relation with price and products.
Economic Factors – Many consumers are now becoming price sensitive in Australia and
thus prefer to spend their revenue less on shopping due to economic downturn. To counter