Strategic Management of Woolworths Group

Running Head: MGT302A/BIZ303
Strategic Management
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1
Management
Executive Summary
Woolworths Group is a retailing company that provides retail as well as financial services to the
customers in Australia. It built on integrity with a mission to deliver quality and value products
to its customers. The report reveals the external as well as internal environment of Woolworths
Group. It has top competitive rivalries with Coles and Myer who are likely to decrease its market
share as well as add increased level of concentration. The company needs to focus more on
developing its competitive strategies to deal with such competition. There is a high threat of
substitute products which needs to be reduced by original, innovative products. The brand
reputation of the company forms as a core competency that brings goodwill to it. The goal of the
Woolworths group is to give priority to its potential customers by providing energy efficiency.
The vision is to offer financial services to its employees and superior quality products to its
customers.

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Management
Table of Contents
Introduction......................................................................................................................................3
Evaluating the organization’s environment.....................................................................................3
Analysis of competitive advantage..................................................................................................5
Strategy formulation and choice......................................................................................................5
Recommendations and conclusion..................................................................................................7
References........................................................................................................................................9
Appendices....................................................................................................................................11

3
Management
Introduction
The primary purpose of the paper is to formulate a strategic plan for the Australian corporation
named, Woolworths Group. The firm mainly operates in supermarkets. It will also analyze the
competitive advantage and evaluate the external as well as internal environment of the company.
Porter's five force analysis, as well as PESTEL analysis, will also be conducted to know the
various factors that impact the company. Moreover, it will also discuss the competitive rivalries
of the Woolworths Group. The major goals and vision of the firm will also be evaluated. It will
provide recommendations on various strategies adopted by the organization.
Evaluating the organization’s environment
It is critical to evaluate the external environment of the Woolworths Group by analyzing Porter's
five forces and the political as well as economic factors (Zutshi, Creed, Holmes & Brain, 2016).
The porters’ analysis is as follows:
 Bargaining power of suppliers: Woolworths has the weak bargaining power of suppliers
because of the extensive amount of market share in Australia as well as the massive
number of products (Bayne, Schepis & Purchase, 2017)
 Bargaining power of buyers: The company has the strong bargaining power of buyers
because its customers are individual buyers which enable the company to deliver low
price products to its customers
 The threat of new entrants: This force is weak for Woolworths as it is a risk for the new
retailer to give high competition to the company. Because it has an enormous number of
stores with excellent quality products
 The threat of substitute products: The Company has to face the high threat from the
substitute products as various other retailers offer similar products at a meager price.
Woolworths requires to formulate innovative strategies for building the reputation of the
brand and inviting more customers (Morioka, Evans & de Carvalho, 2016)
 Competitive rivalry: The competitive rivalries are extensively high for the Woolworths
Group. Its top competitors are Coles and Myer who forces the company to create
effectively as well as competitive strategies to differentiate from them. The competitors