Analyzing the Microenvironment of Woolworth in the Australian Retail Industry

Running Head: BUSINESS ENVIRONMENT 0
Business environment

BUSINESS ENVIRONMENT 1
Table of Contents
Introduction................................................................................................................................2
Conclusion..................................................................................................................................4
References..................................................................................................................................5

BUSINESS ENVIRONMENT 2
Introduction
In Australia, the retail industry is one of the largest employers. Businesses in this
retail industry consist of a wide number of choices including groceries, dairy foods, canned
goods, fruits and vegetables, toiletries and cleaning merchandise.
The first store of Woolworths was opened in Sydney in 1924. The acquisition and
expansion make Woolworth to become one of the largest supermarket chains in Australia.
There are various major brands such as Apollo, Baxters and Smitten, also work under the
umbrella of Woolworth that makes the it one of the largest retailer in terms of revenue of
sales, geographic area covered, and the number of stores all over Australia (Campbell &
Chalmers, 2008).
For analysing the microenvironment of Woolworth, internal environment need to be
considered that is affescted by many forces including customers, suppliers, intermediaries
and competitors. This will help in developing a good strategic plan, the key factors need to be
assessed critically, in which the company operates (Miranda & Konya, 2008).
The relation of Woolworth and suppliers are based on the long-term commitments
that lead to mutual benefits. In addition, Woolworth and their suppliers also established a
speak up service where the partners in trade can report a breach of the law, product and
people safety, corruption, and fraud at several phases (Sanin, 2015). This will help
Woolworth to deliver value benefits to the customer in term of both products and services.
The effective relationship of the Woolworth between the resellers and logistics chain
in between customer and supplier also help Woolworth in deliver superior values to the
customers. The company has maintained a strong association with Australia leading farmers
so that they can provide fresh quality foods as per their core competency (Shin, 2007). As the
company directly sourced the material from the farm, they have an overall control at every
level of their activities, which leads in the rise of their market share.
The other relevant microenvironment factor of the company includes their customers.
The focus of the company is on the response to the changing customer needs. They serve
many customers across all its brands, and thus they also created an everyday reward program
which increases the customer loyalty towards the brand (Dwivedi, Merrilees, Miller &