Market Analysis of Woolworths

Running head: MARKET ANALYSIS OF WOOLWORTHS
MARKET ANALYSIS OF WOOLWORTHS
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MARKET ANALYSIS OF WOOLWORTHS1
1. Introduction to the chosen organization and industry
The concerned organization, Woolworths Supermarkets, is an Australian supermarkets
chain operating under the Woolworths Group (Woolworthsgroup.com.au 2019). The diversity of
propositions that are made by the organization has been adding a competitive edge to the same
since its inception in the year 1924 (Woolworthsgroup.com.au 2019). The organization is
headquartered in Bella Vista, New South Wales of Australia and accounts for around 80% of the
market share along with Coles (Woolworthsgroup.com.au 2019). The diverse range of
propositions that are developed by the organization assisted the same in enhancing the rate of
sales.
The organization currently holds around 1000 stores across Australia, 976 supermarkets
and 19 Metro Convenience stores with the objective of attracting the attention of a variety of
customers (Woolworthsgroup.com.au 2019). The wider distribution channel of the venture
improved the market position of the same while retaining significant amount of customers which
is sufficient for providing the company with competitive benefits against existing players in
Australia. Moreover, the organization also offers online buying options with the objective of
providing the customers with their daily needs at their convenience time and place. The multi-
channel distribution system of the venture ensured improvements in the sales volume and the
profit making ratio.
On the other hand, the uninterrupted functioning of the business units are greatly
dependent on the positive values that are reflected from the workforce. Currently the
organization employs around 115,000 employees who have been adhering to the different

MARKET ANALYSIS OF WOOLWORTHS2
changes that are proposed by the venture for simulating the gains and sustenance of the same in
the markets (Woolworthsgroup.com.au 2019). The revenue earned by the organization in the
year 2018 was A$56.726 billion, which clearly indicates that the organization is prosperous in its
attempts (Woolworthsgroup.com.au 2019). However, it has been noticed that in the year 2018,
the sales volume of the organization fell drastically which affected the profit ratios. Therefore,
the purpose of undertaking the research is to examine the different issues that are being
restricting the uninterrupted flow of operations of Woolworths apart from all the positive ends.
2. SWOT analysis of the organization
Strengths
 The increased brand value of the
organization
 Huge market share along with Coles
in the Australian markets
 Diverse product portfolio
 Presence of multi-channel distribution
system
 Improved commitment towards
environmental concerns
Weaknesses
 Lower international presence and
expansion in the markets affected the
rate of operations of the venture
 Minimized supplier relations has
affected the rate of operations of the
venture while operating in the
different markets
 Delivery quality related issues in the
organizational model
Opportunities
 Huge prospect of growth in the retail
sectors in the developing economies
 Utilization of Big Data with the view
of enhancing the rate of developments
Threats
 Flawed campaigns of the organization
that proclaimed cheaper price
offerings
 Minimization of the quality of

MARKET ANALYSIS OF WOOLWORTHS3
in the organization while identifying
the needs of the consumers (Pulker,
Scott and Pollard 2018)
offerings (Mialon et al. 2016)
 Aldi’s aggressive expansion in the
markets affected the rate of growth of
the organization in the Australian
markets
 Slow growth of online retail industry
have affected the rate of operations of
the venture while operating in the
different markets (Phillipov 2016)
The SWOT analysis of the organization supported in identifying the different aspects of
cahneg in the oeranizational operatiosn while operating in the autsralian markets. The better
brand position, diverse range of product offerings and multi-channel distribution has enabled the
venture in maintainiing te efficiency of the operations while operating in the different markets. In
this relation, the strengths have attributed to the growth and sustenance of the venture while
operating in the different markets (Paull and Hennig 2018). On the other hand, the framework
also developed a range of weaknesses that are affecting the growth of Woolworths.
The major issue that is being faced by the organization is due to lower international
presence, estricted expansion, minimized relations with the suppliers. The different changes in
the organizational operations are related to the expansion of the same which would have
contributed to the sustenance of the venture. However, the lack of efficient expansion related
strategies of the venture affected the growth and sustenance realetd objective of the venture. On

MARKET ANALYSIS OF WOOLWORTHS4
the other hand, the degrading quality of the delivery service affected the interests of the venture
while operating in the different markets.
The major threat of the organization is related to the flawed campaigns of the venture
which critically affected the interests of the customers. The lack of customer retention by the
organization and the aggressive growth of Aldi. The growing strength of the competitors again
affected the rate of operatiosn of Woolworths. The flawed campaigns lof the organization and
the rate of operatiosn of the venture enhanced the rate of operations. Minnema, Bijmolt and Non
(2017) opined that the assessment of the micro-economic environment of an oranization enables
in identifying the strategies that might b einitiated by the organizations with the objective of
gaining a competitive edge in the markets. Therefore, the SWOT assessment of Woolworths
enabled in critically assessing the position of the venture while developing its operations in the
Australian markets.
3. PESTEL analysis of the organization
Political  The enhanced rate of political pressure
on the organization to operate in a
duopolistic economy has restricted the
capacity of the organization in
maximizing the sales volume and
profitability of the same while
operating in the different regions
(Jiang et al. 2017).
 The stable political relations held by
the organization and minimization of

MARKET ANALYSIS OF WOOLWORTHS5
taxations have enabled the venture in
enhancing the rate of operations of the
venture while operating in the
different markets.
Economic  The economic growth of Australia
(GDP) is restricted to 0.4% in 2019
which was 0.9% in 2018 which
affected the rate of operations of the
venture (Pulker et al. 2018)
 The improvements in the customer
spending on different costly
commodities has enhanced the scope
for the venture in developing and
proposing products for a wider variety
of customers
 The global economic fluctuations
might affect the rate of operations of
the venture while operating in the
different markets
Social  The Australian population consists of
31% Millennials (Ariyawardana,
Ganegodage and Mortlock 2017).
Therefore, the changing taste and