Strategic Management Analysis of Woolworths

This article provides a strategic management analysis of Woolworths, an Australian supermarket chain. It covers the company's background, defining strategy, key dimensions, mission and value statements, and impact on performance. The strategy is customer-centric, with a focus on enhancing the core offer, innovating products and services, and providing lower prices to customers.

Running head: STRATEGIC MANAGEMENT ANALYSIS
STRATEGIC MANAGEMENT ANALYSIS
Name of the Student
Name of the University
Author Note

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Table of Contents
Background of the company..........................................................................................2
Defining the strategy of Woolworths.............................................................................2
Key dimensions of the strategy of Woolworths.............................................................3
Mission and the value statements of Woolworths..........................................................4
Impact of strategy on the performance of Woolworths.................................................4
References......................................................................................................................6

2STRATEGIC MANAGEMENT ANALYSIS
Background of the company
Woolworths is a supermarket or grocery chain which has its origin in Australia. The
chain of stores is owned by the Woolworths Limited. The organization was founded in the
year 1924, which forms a duopoly in the Australian retail market along with Coles. The
company mainly specialises in the selling of groceries and other major products like, DVDs,
beauty and health products, household products, baby supplies, pet supplies and various
stationery items. The organization operates around 1000 stores all across Australia which
includes, 975 supermarkets and the rest are convenience stores. The company has also started
a store on the ecommerce platform which is known as Woolworths Online. Woolworths did
not have any plan for international expansion after its formation in the year 1924. The interest
of the consumers started growing about Woolworths after the year 1924
(Woolworths.com.au., 2018). The company has been able to form the forefront of the
innovation based activities in Australia with the help of different types of services and
products.
Defining the strategy of Woolworths
The role that is played by the strategy that has been implemented by Woolworths
Group in Australian retail industry mainly indicates that the organization has been able to
achieve a dominant position in the market. The organization has growth strategies that are
related to the operations and the growth plans of Woolworths Group. The growth is based on
increasing the shareholder value, enhancing the overall growth of the company and
maintaining the track record of growing business. The strategy that has been implemented by
Woolworths Group is also related to satisfaction that is provided to the customers and the
employees to the maximum levels. The company also aims at providing the employees with a

3STRATEGIC MANAGEMENT ANALYSIS
positive working environment and good pay for the work that is performed by them (Daspit
et al., 2017).
The marketing strategy of Woolworths Group is thereby based on the fundamental
goal which is related to the achievement of increase in sales and achievement of sustainable
competitive advantage in the industry. The main competitor of Woolworths in the retail
industry is Coles which has its operations in the country. Another major threat that to the
operations of Woolworths in the industry is Aldi. The strategies that have been implemented
by Woolworths recently has been helpful in increasing the profits of the company and further
providing the top position in the retail market (Ethiraj, Gambardella & Helfat, 2018). The
three principles that are related to the operations of Woolworths Group in the industry are,
improving the core offer for the purpose of ensuring that the customers are put first, the
second principle is based on the ways by which innovation is used to meet the needs of the
customers and the third principle is based on creating customer value with the help of
organising for the success and executing the lean retail model.
Key dimensions of the strategy of Woolworths
The main goal of the strategy of Woolworths is based on placing the customers first.
The five major priorities that are related to the strategy that is implemented by Woolworths
are as follows,
 Building a store-led culture and a customer centred service process.
 Generating the sustainable momentum of sales in the Food sector.
 Evolving the drinks based business of the organization and providing more
value to the customers.
 Empowering the portfolio business for the purpose of pursuing strategies so
that shareholder value can be delivered.

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 To become a lean retailer with the help of end-to-end process and excellence
of the systems (Hill, Jones & Schilling, 2014).
Mission and the value statements of Woolworths
The mission statement of Woolworths is based on the stated aim of the company to at
the heart of a community and be loved retailer for the kids, family leisure and home. The
major objective of the organization is related to the improvement of stocks and the
optimization of the network based efficiency. The company ensures that the customers are
provided services by more than 800 stores in Australia. The business of Woolworths Group is
based on the mission of the organization to deliver best services to the customers with respect
to value, convenience and the quality for the customers. The major business partners of the
organization include, the local farmers and the manufacturers as well (Meyer, Neck & Meeks,
2017).
Woolworths has been able to create its position as the most valuable organization in
Australia. The company has been constantly trying to maintain its position with the help of
making changes in the marketing based strategies and enhancing the supply chain based
activities as well. The suppliers of the company are now given huge importance so that
Woolworths is able to maintain its position in the industry easily (Michael, Storey & Thomas,
2017).
Impact of strategy on the performance of Woolworths
The strategy that is formulated and implemented by Woolworths in the different
organizational processes have affected its operations in the retail industry. The three-year
strategy that has been developed by Woolworths Group is based on the ways by which the
organization can totally be transformed to a customer-centric business which can further
neutralise the competitors. The three-year strategy that has been developed by Woolworths

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Group is based on enhancing the core offer of the company, innovating the services and
products so that the customer needs can be met in an effective manner (Morschett, Schramm-
Klein & Zentes, 2015). The prices that are offered to the customers is also an important part
of the strategy that has been implemented by the company. The strategy was based on
providing lower prices to the customers and further enhance the performance of Woolworths
Group in the Australian retail market. The loyalty system that is developed by Woolworths
Group further helps in increasing the loyal customer base of the company. The data related to
customers is also used by the company to create a position in the industry with the help of
effective strategies. Therefore, it can be stated that the strategies that are implemented by the
company affect its performance to a great extent (Wheelen et al., 2017).

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References
Daspit, J. J., Chrisman, J. J., Sharma, P., Pearson, A. W., & Long, R. G. (2017). A Strategic
Management Perspective of the Family Firm: Past Trends, New Insights, and Future
Directions. Journal of Managerial Issues, 29(1).
Ethiraj, S. K., Gambardella, A., & Helfat, C. E. (2018). Theory in strategic
management. Strategic Management Journal, 39(6), 1529-1529.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Meyer, G. D., Neck, H. M., & Meeks, M. D. (2017). The entrepreneurship‐strategic
management interface. Strategic entrepreneurship: Creating a new mindset, 17-44.
Michael, S., Storey, D., & Thomas, H. (2017). Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new
mindset, 45-65.
Morschett, D., Schramm-Klein, H., & Zentes, J. (2015). Strategic international
management (pp. 978-3658078836). Springer.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic
management and business policy. pearson.
Woolworths.com.au. (2018). Retrieved from https://www.woolworths.com.au/