Market Analysis of Woolworths

Running head: MARKET ANALYSIS OF WOOLWORTHS
Market Analysis of Woolworths
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1MARKET ANALYSIS OF WOOLWORTHS
Introduction
The aim of this report is to prepare a PIC (Product innovation Charter) for a business
organization based in Australia. The chosen business organization for PIC is “Woolworths”
which would be done by conducting a SWOT analysis of the same (David et al., 2017). The
paper proposes to prepare a market analysis of the company to understand the future prospect of
its new product launch.
SWOT analysis of Woolworths
For understanding the business environment, the SWOT analysis is the method of understanding
the internal and external market situation of a company (Phadermrod et al., 2019).
Strengths:
Woolworths holds almost 80% of the market share in Australia (Woolworthsgroup.com.au,
2018). Hence, it has less chance of competition in the market. The company is also known for
being employee friendly. The company also enjoys high level of customer satisfaction and they
have a robust system of product promotions. The company maintains a feedback mechanism that
helps to eliminate any possible issues in the market regarding the products quality.
Weaknesses:
However, the company has a confused consumer base. It lacks the basic knowledge about the
target group. The company also runs into price war with the competitor Coles and faces a threat
of replacement. The Company has to constantly maintain its quality; otherwise, companies like
Coles might rise as a serious competitor.

2MARKET ANALYSIS OF WOOLWORTHS
Opportunity: market and technologies
The company has personalized services for the customers, loyalty schemes. The growing
demand for organic foods in Australia has drastically gone up since 2000, almost 4 times. There
is a booming market in Australia for organic foods (Weeklytimesnow.com.au, 2018. The
company has more opportunities than other big giants in Australia. Due to its increased focus on
experience of the customer, the company enjoys more opportunities in the market. As estimated,
the organic food consumer base in Australia is AU$ 2 billion in 2018 (Weeklytimesnow.com.au,
2018). The company has a flourishing market for organic food in Australia if it can properly
understand the demand of the people. In terms of technology, the company focuses on its
technology development and implementation required for organic crops production. The organic
food production requires less use of herbicides and pesticides, which requires better technology
and software (Reganold et al., 2016). The company recently launched the mobile and desktop
application and websites. It has also installed Wi-Fi based network in all its retail stores. This
helps the customer to have better accessibility and better customer satisfaction.
Threats:
The biggest threat that Woolworths has in Australia is Coles and online retailer Amazon
(Weeklytimesnow.com.au, 2018). The offline and online platforms have stronger hold in the
market. Moreover, the company lacks the innovative products in the market, which is an
advantage for other companies like Coles to get more customers.
Customer demand analysis:
The customer base for the organic food market is large in Australia. The demand for the organic
food and eggs are increasing at a faster pace. The overall production for the organic food in