Big W Repositioning: Evaluating Strategies in a Feasibility Report

This report provides a feasibility analysis of Big W, a major Australian discount department store, focusing on its repositioning strategies in a competitive market. It describes the business environment, key concepts, and strategies related to repositioning, utilizing analytical tools to evaluate Big W's current business situation. The report interprets relationships and trends affecting Big W's performance, evaluates current and alternative repositioning strategies based on effectiveness, competitiveness, efficiency, and stakeholder satisfaction. Ultimately, it recommends a suitable repositioning strategy focused on enhancing communication channels and leveraging competitor analysis to improve profitability and market share, concluding that understanding and adapting to market dynamics are crucial for Big W's sustainable success.

BUSINESS

TABLE OF CONTENTS
INTRODUCTION..........................................................................................................................1
MAIN BODY..................................................................................................................................1
Describing business environment relating to repositioning........................................................1
Explaining business concepts, strategies, procedures regarding repositioning in mentioned
stage............................................................................................................................................1
Analyzing business situation of Big W through analytical tools................................................2
Interpreting relationships and trends about implication of repositioning Big W........................5
Evaluating current and alternative repositioning strategy in the criteria of effectiveness,
competitiveness, efficiency and stakeholder satisfaction..........................................................5
Describing suitable repositioning strategy and recommendations..............................................6
CONCLUSION...............................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Feasibility report helps in analysing business situation through identifying problems and
opportunity to important for further evaluation. In the current scenario, it is crucial to have
feasibility report to determine and assess business situations in effective manner. The current
report is based on Big W largest discount store owned by Woolworths Group Limited. Present
report will include description about business environment relating to repositioning, concepts,
strategies, processes, etc. It will comprise analytical tools to evaluate Big W business situation
along with interpretation. Current study will give focus on repositioning strategy in the given
context along with recommendations.
MAIN BODY
Describing business environment relating to repositioning
Business environment in which the organization is operating is competitive and it si difficult
to survive by offering discount and keeping lower profit margins. Being a discount store, it has
to provide products at a lower margin as compared to competitors that resulted in fall in market
share & profitability. One of the crucial factor interrupting growth of firm is increase in
marketing activities of online platform that is declining share due to lack of focus on targeted
audience for diverse product range. Target segment of retail discount store is those people
looking for affordable products with good quality (Alfisyahrin, Yunus and Zain, 2017). The firm
is not generating ideas beyond this and that is hindering organization’s profitability, share in
industry, etc. in order to repositioning Big W has taken step to consolidate its store networking,
winding unproductive establishments, inclined online based conversion rate, promoting to attract
customers towards shops, etc. From the assessment it can be articulated that Big W is operating
in highly competitive environment for which it has taken mentioned course of action to boost
organizational performance.
Explaining business concepts, strategies, procedures regarding repositioning in mentioned stage
Big W in its repositioning is adopting the business concepts based on the customers and
competitive advantages. The most crucial step on which frim has largely focused on improving
organization model to give positive customer experience through offering discounted prices with
qualitative products. Repositioning efforts are largely diverted towards mentioned business areas
in turn competitive benefits in terms of higher profitability and market share (Du, Li and Wu,
2019.). The larger competition is faced due to strong positioning of Kmart for which its taking
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crucial steps which is reason for declining stage of Firm’s life cycle. Foremost lacking area of
Big W was not focusing on customer demand that is resulting into continuous revenue
declination.
Strategies adopted by specified organization for making strong and leading positioning in
industry is to give higher emphasis on reviving store brand. It is exerted by rebuilding
trustworthiness among customers regarding offered prices. Big W in five years has utilized
marketing mix approach to concentrate on each part like price, product, place, promotion,
people, etc. Frim has involved strategies for delivering right type of products to enhance
customer experience with brand so that long term success can be assured. Big W has given
emphasis on inclining employees morale to boost sales on both online and offline stores to
provide qualitative services to customers.
Procedures for both internal as well external working scenarios play important role in
affecting repositioning strategies of Big W. In post maturity stage of Big W, internal procedures
are widely altered through boosting employee’s performance by enhancing morale to share full
potential to achieve business mission (Kishihara and Matsubayashi, 2020). Enterprise in the its
declining stage of products ensured that online retailing would not be blamed for present
situation but measures to incline efforts to overcome competition are exerted. It is as well
identified that frim is procedures are interrelated with increasing sales along with customer
experience through marketing as well employees involvement to face post maturity stage in
order to get success.
Analyzing business situation of Big W through analytical tools
Big W is in highly competitive scenario which can be understood by referring below
mentioned key performance indicator. In addition to this, analytical tool which is excel is taken
into consideration for the evaluation.
Segment performance
Operating division
Revenue
AUD000
Australia food 39568000
New Zealand food 6291000
Endeavour drink 8657000
Big W 3797000
hotels 1671000
Unallocated 297000
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From the analysis it can be articulated that in operating division of Woolworths Group
Ltd. Big W hotel is in 4th positing in terms of providing revenue to parent company.
Profitability ratio
Operating division
Profits as %
of revenue
Australia food 4.7
New Zealand food 4.4
Endeavor drink 5.5
Big W -12
hotels 15.6
Un allocated 94.3
Company 4.5
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Profit generated by Big W is occurring in negative figure which requires higher
consideration in respect to make improvement. It is reflecting that organization is unable to
generate revenue from making enough sales.
Total industry performance
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The mentioned company deals in diverse product it can be interpreted that firm is not getting
turnover from food and household retailing whereas clothing segment is performing quiet well
as compared to other parts.
Interpreting relationships and trends about implication of repositioning Big W
From the evaluation of mentioned figures and pictorial presentation it can be interpreted
that organization's performance is in declining trend. There is various factor implemented to
enlarge the profitability through market share & sales conversion rate. In respect to
repositioning Big W there is no such improvements are seen as there is relationship between
pricing strategy with portability & revenue (Millington and Ntounis, 2017). Firm has
repositioned through increasing customer satisfaction but got failed as can be validated by
presented profit ratio of Bug W. There is requirement to make suitable measures to improve the
downward falling trends of financial performance of Big W through emphasizing on rewarding
products that are trending in current business environment like clothing, etc.
Evaluating current and alternative repositioning strategy in the criteria of effectiveness,
competitiveness, efficiency
and stakeholder satisfaction
In the present scenario of Big W it can be identified that it has less competitive advantages
like lower price, good brand image, etc. but these are not contributing in ginning success in retail
industry. Current repositioning strategy is associated with focusing on customer changing taste
& preferences and promotional activities through encouraging team members to get higher end
outcome (Nurliza, Suharyani and Nugraha, 2021). It has largely given focus on improving
employees pattern of working through increasing morale & enthusiasm to give better serving
capacity in Big W's department stores. From the situational analysis it can be stated that current
repositioning strategy revolves around providing good client experience with low price
characteristics. In essence of result obtained it can be interpreted that present approach adopted
by firm in order to reposition is implemented with view of getting competitiveness &
stakeholders satisfaction but did not become successful.
Alternative strategy that can be used by discount firms is based on competition. It can be
articulated that the main reason behind lower outcome is the lack of competitive benefits with
company (Seamans and Zhu, 2017). K mart is serving higher level of competitive threat to Big
W so adopting same approach implemented by dominant aspect of industry can give better
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method to deal with arriving barriers in achieving success (5 Strategies to Stand Out From Your
Competitors, 2021). The approach taken into practice b competitors is to highlight quality of
products are good at the lower prices to remove perception of clients that in less values cheaper
qualitative. In addition to this, it is required for the organization to have appropriate analysis of
competitors’ margin regarding the profitability in turn better progressive tactic in financial
aspect can be derived (Villas-Boas, 2018). There are several components that are required to be
developed in to get efficiency in way of dealing with stakeholders like investors, supplies, etc.
Evaluating that selected margin is capable of satisfying customers as well investors. It becomes
essential to give expected return to stakeholders who has contributed in smooth functioning to
get longer sustainability in industry.
Describing suitable repositioning strategy and recommendations
 Big W is advisable to increase its efficiency of communication channel so that quality
traits can be explained to clients. It provides assistance in attaining efficiency in
satisfying stakeholders through enabling them to get sufficient and reliable information
to build good relationship via trustworthiness.
 It is suggested to the organization to implement repositioning strategy based on
competitors. The reason behind selecting this particular approach is to get ability to
conduct competitors’ analysis so that better execution of marketing mix can be exerted.
This will help in gaining knowledge of lacking areas that are cause of hindered
performance in turn suitable actions to gain competitive advantages in terms of better
profitability margins can be obtained.
CONCLUSION
From the above report it can be concluded that feasibility analysis of mentioned
company aid in identifying factors hindering performance of organization. Repositioning is
highlighted to change the customer perception about offered products. In addition to the
business environment, concepts, strategies, etc. has been described in current case study.
Analytical tool has bene utilized to evaluate and interpret relationship & trends prevailing
regarding selected company. Current and alternative approach for repositioning is stated in
present feasible report along with the recommendations.
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REFERENCES
Books and Journals
Alfisyahrin, A., Yunus, R. and Zain, M. Y., 2017. Market share targeting in the food industry:
repositioning the product of local indigenous culinary for the Indonesian
youths. The Business & Management Review. 9(2). pp.26-26.
Du, X., Li, M. and Wu, B., 2019. Incumbent repositioning with decision biases. Strategic
Management Journal, 40(12), pp.1984-2010.
Kishihara, H. and Matsubayashi, N., 2020. Product Repositioning in a Horizontally
Differentiated Market. Review of Industrial Organization. 57(3). pp.701-
718.
Millington, S. and Ntounis, N., 2017. Repositioning the high street: evidence and reflection from
the UK. Journal of Place Management and Development.
Nurliza, N., Suharyani, A. and Nugraha, A., 2021. The Product Features, Functions, and
Benefits of Seafood Products for Competitive Repositioning. AGRARIS:
Journal of Agribusiness and Rural Development Research. 7(1). pp.91-
110.
Seamans, R. and Zhu, F., 2017. Repositioning and cost-cutting: The impact of competition on
platform strategies. Strategy Science. 2(2). pp.83-99.
Villas-Boas, J. M., 2018. A dynamic model of repositioning. Marketing Science. 37(2). pp.279-
293.
Online
5 Strategies to Stand Out From Your Competitors. 2021. [Online]. Available through: <
https://www.business2community.com/strategy/positioning-5-strategies-
to-stand-out-from-your-competitors-02333056>
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