Strategic Management of Woolworths in Australian Retail Market

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author Note

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Executive Summary:
The paper evaluates the business conduct of one of the major retail organizations of Australia
named as Woolworths. The paper presents a short description of the company profile and at
the same time, it also assess the level of competition in the Australian retail market. With
precise application of the PESTEL analysis, the paper shows that Australia is a politically
stable and economically growing nation for conducting sustainable business. Along with this,
the paper identifies some of the competitor organizations such as Walmart, Coles Group,
Amazon and Costco and the impact of their business operations on the company. In addition
to this the paper highlights the internal capabilities such as the strong brand reputation and
skills of the employees along with the threats such as limited presence of the company in the
global retail market and the lack of emphasis on the online business conduct of the company.
Apart from this, the paper highlights the strong emphasis of the senior management of the
company on the application of the differentiation strategy as the business level strategy and
the subsidiary strategy as corporate level strategy. However, the company requires to improve
the efficiency of their CRM for the much required improvement in the marketing and
promotional activities, the supply chain mechanism for the introduction of products at
cheaper rates and their approach in the online biasness management.

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Table of Contents
Introduction:...............................................................................................................................4
Organizational Overview:..........................................................................................................4
Competitive analysis:.................................................................................................................6
External Analysis:..................................................................................................................7
Political:.................................................................................................................................7
Economic:..............................................................................................................................8
Social:.....................................................................................................................................8
Technological:........................................................................................................................9
Environmental:.......................................................................................................................9
Legal:......................................................................................................................................9
Porter’s Five Forces Analysis:.................................................................................................10
Competitive Rivalry:............................................................................................................10
Bargaining power of the Buyers:.........................................................................................11
Bargaining power of the Suppliers:......................................................................................11
Threat of Substitution:..........................................................................................................11
Threat of New Entrants:.......................................................................................................11
SWOT Analysis:......................................................................................................................12
Strengths:..............................................................................................................................12
Weakness:............................................................................................................................12
Opportunities:.......................................................................................................................12
Threats:.................................................................................................................................13

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Business Level Strategy:..........................................................................................................13
Corporate Level Strategy:........................................................................................................13
Future strategy and development:............................................................................................14
Conclusion:..............................................................................................................................14
References:...............................................................................................................................16