Competitive Strategy: PESTLE, Porter's Five Forces, and SWOT Analysis of Woolworths

Running note: COMPETITIVE STRATEGY
Competitive Strategy
Name of the Student:
Name of the University:
Author’s Note:

2COMPETITIVE STRATEGY
The three strategic tools that will be discussed here are pestle, Porter's five forces, and
SWOT. The company that will be discussed here is one of the leading grocery outlets in
Australia, Woolworths. In order to attain a good level of growth, they have to have a clear idea
about the internal and the external environment. This will help them to identify their areas of
strengths and weaknesses as well (Theaker 2017).
SWOT Analysis
Strength-
This mainly talks about the areas of strengths that a company has. This helps the
company in understanding the uniqueness that is present within hem and not in any other
company. What the driving factors that would attract the customers to this company than others.
For an instance, Woolworths is already the leading retail company in Australia and it uses its
strong market position as one of the major strengths. It also uses good technological sources.
They have a strong resolves base along with good human resource and a potential position in the
market. They also use the policy of recycling g that makes them unique. Reduction in carbon
footprint and in packaging costs. The zero food waste which is part of their CSR is also one of
their major strengths (Fabbri and Klapper 2016).
Weakness-
This shows the areas that the company can improve in the long run and what are the facts
that they must avoid. The weakness of Woolworths is that the Government limits its move so
that the price of the products can be kept high. Its partnership with Coles often limits its ability to
rule the Australian retail market (Fernie et al. 2015).

3COMPETITIVE STRATEGY
Opportunities-
This mainly shows the areas in which the company can actually improve in some areas
and can utilize the changes taking place in the market or in the government policies in a better
way. Woolworths uses the opportunities like the changes in the lifestyle of the consumers, the
changes in the supply chain in the best way possible. They try their level best to cope up with the
changing needs and demands of the consumer (Song et al. 2017).
Threats
This mainly shows the treats that the company might be facing and to decipher the ways
in which they might give a tough competition to their competitors. The major threat that
Woolworths has is from the other competitors. One among them is Coles. Government rules and
the frequent changes in the tax policies and the rules and regulations is also one of the major
threats (Obeng et al. 2016).
The macro environmental factors that affect the company are determined through the Porters’ 5F
and the PESTEL analysis
Political-
The political condition greatly affects the working of a company because the government
might impose a new tax or some new rules that will be affecting the workings of the company.
The Australian Govt. implements many new rules that affect the working of the Woolworths
(Balasopoulou et al. 2016).
Economic-