Strategic Management of Woolworths Australia

Running Head: STRATEGIC MANAGEMENT 0
Strategic Management

STRATEGIC MANAGEMENT 1
Contents
Introduction...........................................................................................................................................3
Company background............................................................................................................................4
Macro Environment Analysis.................................................................................................................4
PESTLE analysis..................................................................................................................................4
Five forces analysis................................................................................................................................5
Life cycle stage of the industry..............................................................................................................6
Core competencies of Woolworths.......................................................................................................7
Competitor analysis...............................................................................................................................7
Strategies of Woolworths Australia.......................................................................................................7
Recommendations for new strategies...............................................................................................8
Conclusion and future assumptions......................................................................................................9
References...........................................................................................................................................10

STRATEGIC MANAGEMENT 2
Introduction
Case study is an important tool to analysis the different prospective. The given report is
presented based on case study. In the given case study template, the discussion is done on
various supermarkets. From the case study, Woolworths supermarket is selected that is the
biggest supermarket of Australia. In the introductory part of the report, a brief description
about Woolworths and major challenges faced by it in Australia is highlighted. Macro
environment analysis of any country affects the company in positive as well as negative way.
The macro environment analysis includes the political, economic, social, technological,
environmental, and legal factor of any country. The PESTEL analysis of Woolworths,
Australia is discussed in the report. Every firm has its life cycle stage in which it gone
through difficulties. Furthermore, the discussion is carried on life cycle stage of Woolworths
in terms of retail industry. Due to innovative strategies of Woolworths, it is able to compete
in the supermarkets and became no. 1.

STRATEGIC MANAGEMENT 3
Company background
Woolworths is an Australian supermarket founded in 1924. The firm specialises in selling
vegetables, meat, fruit, packaged foods, magazines, DVDs, household products, and
stationary items. It currently has 1000 stores in Australia Woolworths Group, 2018). Despite
of its best marketing strategies, the firm is facing biggest challenge from the Aldi. Besides it,
Coles also posing challenge to Woolworths. All these firms are competing with each other as
all are offering similar products in the market. There is only little difference between them in
terms of strategies. In recent days, it is facing stiff competition from Aldi who provides
various opportunities for consumers to buy their daily need product at lower prices. In order
to compete with Aldi, Woolworths also started a cost leadership strategy in which it is
successful.
Macro Environment Analysis
PESTLE analysis
Political factors- Political condition of country affects the working of any industry. The
political condition of Australia is stable which can benefit the company in long term. Besides
this, Australia has better trade relation with New Zealand due to which Woolworths has
expanded its market in New Zealand. The government of Australia introduced a policy on
removing trade protectionism so that open trade can be possible. By the emersion of this
policy, various new firms can enter the market that can hamper the growth of Woolworths.
Economic factor- these factors include economic growth, inflation rates and interest rates
which in turn affects the operations of business. In Australia, Woolworths operates in
economically sound environment. As Australia has, high standard of living that puts positive
impact on the company. As the GDP of Australia likely to expand 2.95% in 2018 that will
help the company to have more growth opportunity (Heritage, 2018).
Social factors- social factors include consumer’s lifestyle trends, demographics, brand image,
and advertising. Social factors of Australia can have positive impact on Woolworths. It is
founded that the citizens of Australia mostly prefer doing shopping at one roof. Besides this,
they prefer store shopping instead of doing shopping online (Anna Patty, 2016). They tend to
choose doing shopping one time in a week. So according to this Woolworths supermarkets