Strategic Issues in Woolworths: Analysis and Recommendations

Management strategy 0
Title: Strategic Issues
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Management strategy 1
Executive Summary
Strategic management is the recognition and interpretation of strategies that managers will take
in order to improve organizational performance as well as a competitive advantage. If average
profitability is immense and higher than the other companies, the organization is said to be
competitive. The key to success is management. In this highly competitive market and business
environment, strategic management strategies work well in terms of coordination. But some
organizations face few strategic issues and there is a need to work on these strategic issues for
business growth and profitability. This report includes strategic issues that Woolworths will face
in the next 3 to 4 years. Recommendations to manage these strategic issues are also included in
this report.
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Management strategy 2
Contents
Introduction......................................................................................................................................3
Identification and Analysis of Strategic Issuesthat Woolworthsis facing.......................................3
Main Strategic Issues...................................................................................................................4
Issues Regarding Technology Challenge.....................................................................................4
Competition Issues.......................................................................................................................5
Recommendations for Woolworths.................................................................................................7
Recommendation 1......................................................................................................................7
Recommendation 2......................................................................................................................7
Recommendation 3......................................................................................................................8
Woolworths’ Strategic Management Practice.............................................................................8
Framework Employed.....................................................................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................13
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Management strategy 3
Introduction
Woolworths Supermarket is Australia's famous retail chain with at least 78% market
share and strong competition from some retail stores like Coles, another grocery store and
supermarket. Woolworths has a monopoly in the supermarket of Australia with 82% of market
share. The specialization of the company implicates the sale of vegetables, fruit, meat, everyday
stationery, DVDs as well as magazines. There are more than 981 stores in various cities in
Australia, and the company is headquartered in NSW. Brad Banducci is the director of
Woolworths Supermarket, whose slogan is The Fresh Food People. At the end of 2015, the
corporation's sales revenue exceeded AUD 40.123 billion. The main goal of the Woolworths
organization is to provide totally fresh produce to Australian growers and farmers.
Identification and Analysis of Strategic Issues that Woolworths is facing
Australia's retail industry operates only some large retailers in the supermarket industry,
including Woolworth, ALDI, IGA, Foodworks, Coles Group, SPAR, and Macro Wholefoods.
However, there are few small retailing stores growing very quickly and will surely give strong
competition to Woolworths in the coming years. These retailers offer customers a wide variety of
grocery and food choices, and the entire retail industry contributes more than 4% of Australia's
GDP. Woolworths is Australia's largest retailer, but as supermarkets grow, the retailer is facing
fierce competition from its major competitors (Abd-El-Salam, 2015). Most retailers in coming 3
to 5 years in the retailing market have margins that are almost similar. The only difference that
all these stores will create for their consumers is service delivery as well as retail efficiency. In
order to maintain and must build enduring competitive advantages, in future Woolworths need to
improve service efficiency with innovation. If companies can leverage technology innovation to
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