Micro Environment Analysis of Woolworths

The Business Environment

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Contents
Introduction...........................................................................................................................................1
Background of the business...................................................................................................................1
Micro environment analysis..................................................................................................................2
Challenges and risk present in the micro environment..........................................................................3
CONCLUSION.....................................................................................................................................4
REFERENCES......................................................................................................................................5

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Introduction
Business environment has changed all across the globe hence it has become essential for the
organisations to ensure that they understand the challenges they are facing and take use of
effective strategies for confronting it (Bitzer & Hamann, 2015). Woolworths is one of the
biggest supermarket chains in Australia. This report analyses the micro environmental factors
affecting the business of Woolworths as well as the challenges presented by these factors. At
last it gives the suggestions about the use of strategies that could help in facing these
challenges.
Background of the business
Woolworths limited is a major retail company in Australia having major business of
supermarket. Apart from this it is also having business of hotels, gasoline stations and spirits
etc. Woolworths specialises in the business of selling groceries but also sells other products
which includes pet and baby products, household products, health and beauty products,
stationary items (Manewa, Siriwardena, Ross & Madanayake, 2016). It having 1000 stores in
which 980 are supermarkets while others are convenience stores. It also does its business
through the help of online portal “HomeShop”.
Micro environment analysis
Woolworths is facing significant amount of challenges from its competitors. There are
various micro environmental factors that are affecting their business. Some of them are as
follows:
 Competitors: Number of Big competitors in the Australian Supermarket is less but the
ones that are present gives a tough fight to the Woolworths. Companies such as Coles
are capable of taking market share from the cited firm. Some other big competitors
are Aldi Australia, Distributors, Metro, Giant Eagle. With the advancement in the
digital technology, there are many small retailers coming in the market.
 Suppliers: Woolworths has a very close relationship with their suppliers. Apart from
this they also have strong relationship with supply concatenation, resellers and
logistics concatenation which is driven by higher values of Woolworths (Moscardo,
Lamberton, Wells, Fallon, Lawn, Rowe, ... & Renouf, 2013). They believe that
suppliers and other market mediators are really of import as they have a direct impact
on the quality of services and products that is given to the customers.