Woolworths: Business environment and strategic analysis

Running Head: WOOLWORTHS 0
Woolworths
Business environment and strategic analysis

WOOLWORTHS 1
Contents
Executive summary...............................................................................................................................2
Introduction...........................................................................................................................................3
Evaluating the organization’s environment...........................................................................................4
External analysis....................................................................................................................................4
Porter’s five forces of Woolworths....................................................................................................4
PESTLE analysis...............................................................................................................................4
Internal analysis.....................................................................................................................................5
Core competencies of Woolworths....................................................................................................5
Value chain analysis:.........................................................................................................................5
Analysis of competitive advantage........................................................................................................6
Competition rivalry...........................................................................................................................6
The vision of Woolworths-....................................................................................................................6
Cost leadership and differentiation strategy of Woolworths..................................................................7
Recommendations.................................................................................................................................8
With the support of strategy..............................................................................................................8
In a critique of strategy......................................................................................................................8
Conclusion.............................................................................................................................................8
References.............................................................................................................................................9

WOOLWORTHS 2
Executive summary
The aim of the paper is to deliberate the position of Woolworths in Australia. Various
competitors in Australia are offering similar type of products so the bargaining power of
buyers remains high. Besides this, there are various substitutes available to the customers
which led the firm to offer products at a low price. Other than this, people mostly prefer to
shop at one-roof and purchase environment-friendly products. This gives an advantage to
Woolworths as it satisfies both the needs of the customer. The paper also defines the goals
and vision of Woolworths. The vision of the company is to become number one across the
goal. Its goal is to provide best quality services to its customer. It has adopted cost leadership
as well as differentiation strategy in its firm. However, cost leadership strategy proves to be
more suitable as customers mostly prefer shopping at one store in lower price. In some
situation, it is required to adopt a differentiation strategy so that it can offer some unique
services to the customers.

WOOLWORTHS 3
Introduction
Woolworths is one of the leading retailers in Australia. It is the second largest retailer
in terms of revenue after Wesfarmers limited. It started its operation in 1924 by launching its
store in Sydney. In the year 2012, it became one of the largest retail stores in New Zealand
and Australia. It is necessary for the organization to search the external environment so that it
comes to know about its threats as well as opportunities that are available. In this report, the
discussion is carried on the external analysis (Porters five forces, PESTLE analysis) and
internal analysis (core competency and value chain analysis). Further, its competitors and
strategies are explained with some recommendations.