Challenges Faced by Woolworths and Its Impact on Business | Desklib

TO IDENTIFY THE CHALLENGES FACED BY
WOOLWORTHS AND ITS IMPACT ON THEIR BUSINESS
1

Contents
BACKGROUND INFORMATION................................................................................................3
REASON FOR CHOOSING THE TITLE......................................................................................3
RESEARCH QUESTIONS.............................................................................................................3
RESEARCH AIM AND OBJECTIVES.........................................................................................3
LITERATURE REVIEW................................................................................................................4
Trends in retail industry...............................................................................................................4
Pestle and Porter’s five forces model..........................................................................................5
SWOT Analysis...........................................................................................................................8
Primary data collection................................................................................................................8
Recommendations......................................................................................................................12
REFERENCE................................................................................................................................13
APPENDIX....................................................................................................................................14
Questionnaire.............................................................................................................................14
2

BACKGROUND INFORMATION
Woolworths is a chosen organisation within this research. It is a chain of supermarket and
grocery store that was established in 1879 by Frank Winfield Woolworth. The results of the
Woolworths were the poorest in the year 1969, as it failed to chalk out suitable
strategies essential to take on its rivals in the marketplace (Case Study: Why Woolworths Failed
as a Business, 2021). Woolworth sales began to decreased that negatively impacts on their
business performance and growth. Consumers were not satisfied or happier with the service
quality of the company. This is a biggest reason of falling Woolworths in the market.
REASON FOR CHOOSING THE TITLE
The main reason behind choosing this title is to identify the reasons of failing the
Woolworths in marketplace. This research is important because it helps in providing accurate
information regarding the ways for improving business performance in marketplace. This
research is important for the failed organisation by providing accurate information regarding
developing business again in effective manner.
RESEARCH QUESTIONS
Research question
Q1. What the challenges faced by Woolworths and its impact on their business?
RESEARCH AIM AND OBJECTIVES
Research aim:
The main aim of this research is “To identify the challenges faced by Woolworths and its impact
on their business”
Research Objectives:
 To identify the trends in retail sector
 To analyse the external environment using PESTEL and Porter’s Five Forces model
 To carry out primary data collection
 To provide recommendations based on secondary and primary data collection
 Primary data collection would be based on small survey questionnaire
3

LITERATURE REVIEW
Trends in retail industry
As per the viewpoint of Bodolica, Spraggon and Soueid (2019), the retail industry is one of
the fastest industry in the world which has changed the shopping experience of customers.
Through analysing the trends in retail industry, company can better predict what is the need and
requirement of customers in future. It is important for the retail industry to understand the trends
of consumers in order to make them satisfied with the products and services. One of the trends in
retail industry is selling products online. It is a trend which helps in improving the performance
and productivity of business. Online shopping becomes priority of consumers as they have less
time for buying the products by visiting stores and outlets. The retailers are changing their
business models in order to gain success in market and also finding new revenue stream.
Retailers are focusing on increasing their presence on e-commerce channels and social media
sites in order to enhance the sale and profitability of business (Verma, Malhotra, D. and Singh,
2020). The other trend which is followed by retailers is adopting new and advanced technology
that helps in improving the performance and productivity of business. Retailers are focusing on
adopting automated technology in order to handle the labor shortages. Through automated
technology, company can track the orders, communicate with customers and also manage the
customer loyalty programs. These technologies also help in filling the staffing gaps and also
streamline the efficiencies for task. The retailers are investing in automated software in order to
meet the changing needs of hiring landscape.
Nowadays, retailers are also focusing on delivering the product on same day in order to attract
maximum number of people towards the brand. The retailers are grabbing the opportunity to
fulfil the need and requirements of customers in order to create strong customer base and
improving the branding of business. The biggest digital trends in retail industry is social media, it
is a platform which helps in reaching to wider segment of people in order to boost the sale and
growth of business. Social media platform helps in generating more and more revenues. It
becomes important for the retailers to create strong presence on different social media platforms
in order to attract maximum number of people towards the brand. The retailers are also focusing
on creating smarter services with AI technology in order to enhance user experience and also
meeting their expectation. Another trend in retail industry is providing personalized experience
4