Woolworths: Background, PESTLE Analysis, Microenvironment, Competitors, SWOT Analysis

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Marketing

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Background of Woolworths
Woolworths is the leading retailer in Australia. after the Wesfarmers limited, it comes
at the number two in terms of revenue. It has started its operation in the year 1924by first
started its store in Sydney. After this, in the year 2012, it proved to be one of the biggest
retailers in Australia as well as New Zealand. Woolworths tends to specialises in selling the
groceries such as fruit, vegetables, packaged foods, and meat. It currently operates under the
1000 stores across all over Australia Bailey, Price, Pyman & Parker, 2015).
In Australia, it is the biggest chain of supermarket and also called as the Australia’s
fresh food people. it also more than 110,000 people that helps it in providing the customers
with superior range, services, convenience and value. It is effectively utilising the opportunity
to better serve the customers in its retailing store. It is also effectively utilising the new and
innovative techniques in order to bring the best concept for the customers. Using such
initiatives, it has also created the new and consistent look in the World. It also seeks to work
closely and effectively with the Australia farmers and growers in order to ensure the best
products for its customers. It tends to source the 96 per cent of the fresh vegetables and fruits
from the Australian growers and farmers. In this way, Woolworths is able to make the best
contribution in the Australian retail industry (Riemer et al, 2016).
Pestle analysis of Woolworths
Political Factors: In the recent time, political condition affects the retail industry in Australia
to a great extent. Similarly, Woolworths performance is also get affected to the greater level.
Besides this, federal government of Australia has also brought the competition policy that
tends to prevent the major international players such as Coles and Woolworths in eliminating
the competition. In addition to this, the stability of the government in Australia has also
helped the Woolworths to work well in the retail industry of Australia.
Economic Factors: the decline in the economic conditions of market across the Australia, it
has affected the Woolworths performance. In addition to the decline, the fluctuations in the
exchange rate of currency as well as weakening of the Australia Dollar have also affected the
International retail operation of Woolworths.

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Social factors: on the recent time, it is true that customers prefer to choose the environmental
product. in order to fulfil the demand of customers, Woolworths has also indulge itself in the
healthier and greener life cycle. It is also significant for the firms to comply with the
necessary corporate social responsibility. It will help in gaining the more market share. Social
factors therefore covers the gender, religion, sex, norms and population size. All these aspects
in Australia tends to keep changing. Due to the varying demand of customers also,
Woolworths has brought several technological changes.
Technological factors: In the recent time, technology has taken the place in every industry, in
the retail industry, competition has increased to a greater extent that requires the firm to adopt
innovative technologies. Woolworths has also taken into account the green refrigerator
technology in order to store the perishable product for the longer duration. In the recent time,
Woolworths has also adopted the new checkout free grocery experience in order to start the
new style of shopping in the Australia. It has started the “scan & Go” technology that allow
the reward members of Woolworths to scan and further pay for the items by making use of
the app. It will help in bringing the new kind of retail experience in the Australia market. It
believes that the mobile payment and the smartphone technology have the higher potential to
transform the shopping experience for its customer in the future. In this way, it plays a major
role in retail industries. Woolworths uses innovative technologies that assist it in increasing
the efficiency and effectiveness for its products as well as services. It has self-checkout
machines in the store. In addition, it has machines that enable the customers to make
payment-using credit and debit card (Richards & Devin, 2016).
Environmental factors: several environmental factors are also affecting the Woolworths
performance as well as the retail industry. It means that the Woolworths is also getting
affected by the environmental factors. Therefore, the wine business of Woolworths is
adversely threatening the environmental condition. As a result, it is also affecting the
profitability of the company. In order to protect the environment, Woolworths has also taken
several initiatives. It has phased out the use of plastic bags. From the year 2018, it has
stopped giving the lightweight plastic bags to the customers (Devin & Richards, 2018).
Legal factors: several laws are made by the Australian government in order to assist the
organisations. Due to this, Woolworths has also set its own policies to work effectively.

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Similarly, safety and health laws are also created where employees are provided the effective
working environment.
Microenvironment
Suppliers
In every organisation, suppliers play the essential role. It has maintained the strong
relationship with its suppliers. Every year, it also awards it top supplier. In the year 2018, it
has awarded the AB foods as its top supplier. The proper analysis of Australian retail market
states that it is highly concentrated and strong competitive market. Due to this, it also has to
face high bargaining power from the suppliers. Due to this also, it believes in making the
strong relationship with the suppliers. It has also maintained the strong relationship with its
supplier over a period of time. In its report, it has stated that it believes in making the perfect
trust with its thousands of suppliers with whom it is working. They also played the essential
role in the huge success of Woolworths. Similarly, Woolworths is also dealing with its
suppliers with innovation and trust (Mortimer, 2016).
Relevant publics
Woolworths believes in building the best and strong relationship with its stakeholders. It
therefore includes several kinds of stakeholders in its relevant public. Customers are the most
essential element that is included in its public. It has around 1500 stores that further make the
countless efforts for satisfying its customers through value, quality, and sustainability. It has
also stated that Woolworths operates its business in Australia, New Zealand, and South
Africa as well. In these countries, it appreciate that it is meaningfully involved in the
community upliftment measures. It has also various shareholders that are included in its
relevant public.
Market Intermediaries
It assists the Woolworths in promoting, distributing, as well as selling the products to final
customers. In addition to this, the physical distribution of the Woolworths tends to adopt the
medium through which final goods are also delivered to the end consumers. This department
of the Woolworths also helps in ensuring the proper storage of the firm that helps in