Strategic Analysis Report of Woolworths

Running head: STRATEGIC ANALYSIS REPORT OF WOOLWORTHS
Strategic Analysis Report of Woolworths
Name of the University:
Name of the Student:
Authors Note:

1STRATEGIC ANALYSIS REPORT OF WOOLWORTHS
Executive Summary
The major focus of Woolworths Company’s business is the retail and financial services provision
to the upper as well as middle income groups in South Africa, New Zealand and Australia. The
report reveals that Australian retail industry needs agility along with multiplicity of delivery
platforms which might leave behind the non-responsive retailers. The existence of certain strong
competitors within Australian retail industry such as Myers and Coles are likely to decrease
Woolworth Company’s market share and also contribute to increased concentration level. To
deal with such fierce competition from Myers and Coles, Woolworths Company is greatly
focused on developing its strategic priority. The latter half of the report scans the internal
environment of the organization using the strategic tools of Resources, Capabilities and
competency analysis using the tool of VRIO Analysis. This has been followed by the
Information solutions system being proposed related to the Point of sales and certain
recommendations have also been provided.

2STRATEGIC ANALYSIS REPORT OF WOOLWORTHS
Table of Contents
Part 1: (External Analysis)...................................................................................................3
Business Background.......................................................................................................3
Industry Description........................................................................................................3
General Environment Analysis........................................................................................4
The Industry Environment Analysis................................................................................5
Competitive Environment Analysis.................................................................................7
Opportunities and Threat Analysis..................................................................................8
Part 2: Internal Analysis and Proposal.................................................................................9
Resources of Woolworths................................................................................................9
Capabilities identification..............................................................................................11
Core competency analysis using VRIO.........................................................................11
Proposing a suitable information system solution that meets the needs of Woolworths
...................................................................................................................................................13
Evaluating the proposed system and recommendations................................................13
Conclusion.........................................................................................................................14
References..........................................................................................................................16

3STRATEGIC ANALYSIS REPORT OF WOOLWORTHS
Part 1: (External Analysis)
Business Background
Woolworths Group Ltd is positioned as a renowned Australian retail company. The
business segments of the company encompass New Zealand supermarkets, Australian food and
petrol, Endeavour drinks group and group of hotels. The major focus of Woolworths Company’s
business is the retail and financial services provision to the upper as well as middle income
groups in South Africa, New Zealand and Australia. The retail company is also positioned as an
investment holding business and among the top 100 organizations listed within “Johannesburg
Securities Exchange” (Woolworthsgroup.com.au. 2018). The business of Woolworths is focused
on offering quality services and products to all its target consumers by its competitive price,
human resource and fresh food strategies.
Industry Description
The retail industry of Australia in which Woolworths Company has its business operation
is affected by disruptive forces like changing spending pattern of the Australian consumers along
with arrival of international companies (Naidoo and Gasparatos 2018). These companies are
intended to bring in a whole new approach of retailing. Consumers in the Australian retail
industry have turned out to be more tech-savvy, affluent as well as busier. Moreover, their
expectations are also changing and the technology is evolving their buying behavior. In the
upcoming years, Australian retail industry needs agility along with multiplicity of delivery
platforms which might leave behind the non-responsive retailers.