Business Level Strategy of Woolworths in Australian Retail Sector

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
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STRATEGIC MANAGEMENT1
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Pestle Analysis.......................................................................................................................2
Key opportunities and threats.................................................................................................4
Competitive Analysis of Australian Retail Sector.................................................................5
Conclusion..................................................................................................................................7
References..................................................................................................................................8

STRATEGIC MANAGEMENT2
Introduction
Business entities have to make choices amongst diverse strategic options relying on
the market or industry in which they operate. On the contrary, corporate level strategy entails
the selection of strategic alternatives across all markets. It executes its operations, business
level strategy takes into account strategies, which determine the way the company will use its
resources in particular market or product area in relation to the strategies used by its market
rivalries (Bailey et al. 2015). Woolworths executes its operations with over 995 stores across
the country and relies on more than 115,000 team members in stores, distribution centres as
well as back office. Its official website mentions that Woolworths takes utmost pride on
working in an integrated way with Australian farmers and agriculturalists in order to ensure
availability of their products to clientele. Woolworths runs range of brands such as
Woolworths or Safeway supermarkets, Big W, Tandy, Dan Murphy’s, Dick Smith
Powerhouse, Dick Smith Electronics and BWS. Furthermore, it sources around 96% of all
fresh fruit and vegetables with 100% of fresh meat from Australian farmers, which has
developed the company as Woolworths Australia’s Fresh Food People (Woolworthsgroup.au
2019). The company’s Overall Business Woolworths initiated its business by launching the
first store in Sydney in 1924, which had been considered as chief supermarket chain in
Australia as well as New Zealand along with around 28 million clients per week accounted
for almost 31% market share. Reports of Paull and Hennig (2018) have revealed that
Woolworths has surpassed its last years’ big Masters-enthused defeat to post annual profit of
around $1.5 billion. It is seen as a relative reversal from its $1.2 billion loss estimated in 2018
as the supermarket giant extricated its financial condition from the wreckage of the Masters
Hardware experiment. The aim of the report is to focus on the business level strategy of
Woolworths’ strategy.
Discussion
Pestle Analysis
Political- Australian political scenario has been considerate for Woolworths in relation of its
business performance. Masih et al. (2019) have cited example of the Australian federal
government that has recently introduced competition policy, which prohibits major retailers
in eliminating competition. On the other hand, guarantee of increased rate of return and