the study is to analyze the various factors that provide a threat of competition to Woolworths from Amazon

Running head: BUSINESS STRATEGY ANALYSIS OF WOOLWORTHS
BUSINESS STRATEGY ANALYSIS OF WOOLWORTHS
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BUSINESS STRATEGY ANALYSIS OF WOOLWORTHS1
Executive Summary
The significant objective of the study is to analyze the various factors that provide a threat of
competition to Woolworths from Amazon. Among the various identifiable challenges, the
aspects of social media ineptitude and poor customer loyalty have been evaluated.
Additionally, solutions have been provided as to how these challenges can be overcome by
the company. The implementation process of the solutions have also been explained using
Lewin’s model of change management. In conclusion, it is mentioned how the
implementation of these solutions can aid the company to regain its position in the market.

BUSINESS STRATEGY ANALYSIS OF WOOLWORTHS2
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Overview of the Company.....................................................................................................3
Strategies Adopted by Competitor – Amazon.......................................................................4
Issues faced by Woolworths...................................................................................................5
 Social media ineptitude...............................................................................................6
 Poor consumer loyalty.................................................................................................7
Solutions.................................................................................................................................8
Implementation of solutions...................................................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................11

BUSINESS STRATEGY ANALYSIS OF WOOLWORTHS3
Introduction
Globalization has had an exponential impact on global business organizations,
including those in the retail sector. The effect of globalization on the retail sector involves
transformations and developments in global sourcing, procurement, manufacturing and
logistics (Gregory 2015). Due to the massive scope of the sector, the retail industry is viewed
as highly competitive. The presence of globally recognized organizations in the industry such
as Amazon, Woolworths, Walmart, Ebay etc. are increasing the competition among each
other thereby transforming the scope of the market and the consumption patterns of the
customers (Sims 2018). In this aspect, Amazon has strategized various means to gain a
competitive advantage in the market, through product diversification and competitive pricing,
which in turn has attracted the maximum customer base and their loyalty (Haucap and
Heimeshoff 2014). For this reason, the organizations like Woolworths have faced severe
threats of competitive rivalry that can be tackled with the help of certain strategies. The report
will further discuss the problems faced by Woolworths in terms of competition from
Amazon, and how they might be overcome. These problems may be recognized as social
media ineptitude and poor consumer loyalty.
Discussion
Overview of the Company
Woolworths Supermarkets is a chain of grocery stores and supermarkets in Australia,
which was established in the year 1924. The supermarket chain additionally provides retail
services through the sale of a variety of products such as health, beauty and household
products, groceries, magazines, electronics stationery items, pet and baby products
(Woolworthsgroup.com.au 2019). The company also operates through online mediums in the
form of their official shopping website, thereby providing the products to their customers at