Woolworths: Macro-Environment and Industry Analysis

Running Head: WOOLWORTHS 0
BUSINESS MANAGEMENT
AND STRATEGIC
MANAGEMENT

WOOLWORTHS 1
Table of Contents
Introduction................................................................................................................................2
Macro-Environment Analysis....................................................................................................2
Industry Analysis.......................................................................................................................5
Conclusion..................................................................................................................................7
References..................................................................................................................................8

WOOLWORTHS 2
Introduction
This report outlines Woolworths, a Sydney Based, Australia grocery retailer and its
competitive stand in the Australian supermarket industry. The study of the external and
industry environment influencing the Australian retail and Woolworths is undertaken and
centered on the study, it has been identified that how it is influencing the performance of
Woolworths.
Woolworths Group is one of the leading supermarket chain and second largest corporation in
Australian in terms of revenue. The first store of Woolworths was opened in 1924 and until
now, the company has expanded with opening more than 995 stores all over Australia in
context with various acquisitions and mergers. The company value and culture reflects high
integrity with a mission to offer best in value (Anitsal, Anitsal and Girard, 2013).
Considering retail sector in Australia, the company is providing various range of products
ranging from groceries, health and beauty products, magazines, household products etc. In
2018, the company profits were increased by 12.5 per cent with a revenue of 5,672.6 crores
AUD due to their effective operational and marketing strategy (finance.nine.com.au, 2018).
Even with its huge existence in the Australian retail sector, Woolworths is facing various
concerns while sustaining its competitive advantage and leadership position. With the rising
competitors and increasing demand, the shift in power structure also one of the major
component needed to be considered. In addition, Australian supermarkets and grocery stores
are predicted to experience annualized revenue growth of 1.8% in the five years to June 2022
(bankwest.com.au, 2018).
Macro-Environment Analysis
Macro environment analysis helps Woolworths to identify various external threats in the
external environment having direct or indirect influence over the company business
operations. The Supermarkets and Grocery industry is one of the most fiercely competitive
sector in Australia (Dwivedi et al, 2012). This competition brings out various threat to
Woolworths in terms of its sustainability and growth. The analysis of these macro external
factors can be better analyses while applying the important strategic tool i.e. PESTEL.