Strategic Capability Analysis, Strategy Formation and Implementation

Running Head: STRATEGIC MANAGEMENT
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WOOLWORTHS SUPERMARKETS
Strategic Capability Analysis,
Strategy Formation and
Implementation
Strategic Management
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STRATEGIC MANAGEMENT 1
Contents
Strategic Initiative......................................................................................................................2
Evaluation..................................................................................................................................5
Strategy Implementation Plan....................................................................................................7
Measure......................................................................................................................................9
Balanced Scorecard................................................................................................................9
Strategy Map........................................................................................................................11
References................................................................................................................................12

STRATEGIC MANAGEMENT 2
Strategic Initiative
The new strategic initiative proposed for the Woolworths Supermarkets is the “use of
technology” by implementing the plan for at least for three-year time horizon. In Australia, it
is the number one supermarket retailer from a very long-time conducting business
professionally in all aspects being a retailing supermarket and highly innovative (Pickles,
Barrientos, & Knorringa, 2016). The structural changes are needed significantly in the
supermarket industry driving major innovations helps in changing the competitive positions
of the retailers. Innovation is the key to secure a competitive advantage by implying strategy
shaping the Woolworths Supermarkets playing crucial role in Australian food marketing. It
helps in having control over product, packaging and delivery specifications (Merrilees &
Miller, 2001). The company needed to initiate capitalizing fresh food revolution and rapidly
increased market share at the expense of the small independents (Phillipov, 2016).
Woolworths with Coles and Franklins are the center of focus in Australian retailing relating
to competitive strategy and innovation, and financial press attention. This supermarket is
already developed consisting department stores, shopping mall, and discount department
stores where the pattern need to change with the help of technology innovation.
The innovation took place by creating self-service grocery store and the emergence of
modern retailing with consumers shopping experience. The complex combination of forces
impacted the food retailing transformation from personal service to self-service. In the
revolutionary supermarkets, mass communication introduction through television, explosion
of population, raise in ownership of motor vehicle, women at work and at home changing
role and urbanization increase outcomes inclined shoppers to accept self-service (Pulker,
Trapp, Foulkes-Taylor, Scott, & Pollard, 2018). The model of Franklins’ was used for the
measures related to cost-cutting with the fresh food retailers. It made a cooperative
relationship between Franklins and small independent retailers for the achievement of
economies of scale in that industry with broad network providing convenience to consumers
related to the total grocery shopping experience. Woolworths’ innovation on fresh food
developed a revolution not understood by many retailers and customers which need to be
worked out. The change in the company with the rapidly changing environment needs to get
worked by taking care of changing consumer preferences and habits, the emergence of
ecosystems and aggressive competitors, and new technologies (Mialon, Swinburn, Allender,
& Sacks, 2016). To achieve profitable growth requires value proposition, shaping ecosystem,
value chain working with technology, customer engagement and effectiveness commercially,

STRATEGIC MANAGEMENT 3
and back-office, warehouse and in-store operations, and rapid innovation (Kuijpers,
Simmons, & van Wamelen, 2018).
The major concern is food safety and its growing demand and need from production
to store shelves which can be protected by electronic labels providing customers with a more
accounting completion. It is essential for every company to improve efficiency and reduce
costs to remain competitive on prices involves cost aspects. In modern times, the changing
and evolving consumer behaviour is helpful with a role of technology for attracting
customers and maintaining the state of loyalty. The strategy proposed need to be operated by
working on an approach of keeping friendly with employees, active engagement with existing
customers and providing them satisfactory experiences and attracting more customers
(Brown, Forina, & Sikes, 2011). It is necessary for the companies like Woolworths to make
technology improvement and product innovation. The company wanted to deliver quality
products at the possibility of lowest price. The technology improvement helps in lowering
economic costs, and achieves expansion and profitability. Woolworths need to make
medium-term investments in the technology of its in-store experience by renovating and
modernizing the stores worldwide while new stores leveraging floor-cleaning robots and
shelf-stacking with long-term cost improvement for reinvesting the base of evolving
digitalization with the development of market consumer (Hamilton, Alici, & in het Panhuis,
2018).
In recent times, Woolworths explored various opportunities by transformation
digitally for through-the-chain which competitors like ALDI supermarkets started to
capitalize. The introduction of IoT (Internet of Things) technology for better supply chain in
the operational improvement controls and giving visibility in destination, origin, and location
of all products helps in building the solution of in-house online order-and-deliver for future.
It is crucial for the company to make supply chain closer using innovation by investing in an
internal innovation focused on tech-enables supply chain R&D (Mwai, Ntale, & Ngui, 2018).
Competitive differentiation and market share increment can happen employing variety of
strategic initiatives where one of is the smart use of technologies for improving customer
experience, drive sales and margins increment for making the company successful. It requires
convenience, freshness, personalization and transparency differentiation from competition.
Woolworths’ supermarkets need challenges to utilize technology for making consumer
experience more convenient, enjoyable, personal, and less hazardous and time consuming. It
is worthy to transform the company’s traditional stores with online establishment moving in