Crisis Management in Woolworths Supermarkets

Woolworths
Supermarkets
Australia
MANAGEMENT

ORGANIZATION
Woolworths is Australia’s largest supermarket chain. Operating 995 stores
across Australia, Woolworths relies on the 115,000 team members in
stores, distribution centers and support offices to provide our customers
with superior service, range, value and convenience.
As one of Australia’s most innovative retailers, Woolworths understands
that consumers are looking for new, simple ways to shop. Consumers can
shop from the comfort of their computer at home or on the train on their
way home from work using the Woolworths Supermarket App and the best
part is, their groceries can be delivered straight to the kitchen bench.

ORGANIZATIONAL CRISIS
Woolworths Supermarket first opened in Australia in December 1924 and was founded by
Percy Christmas; the brand has now a renowned supermarket in the Australian market as well
as in New-Zealand. The supermarket brand sells all kind of product lines and possesses various
sub-brands. Despite its enormous presence in the industry, the brand is now facing several
issues to maintain its competitive edge and leader position. The heavy price- based competition
which Woolworths faces from both its direct and indirect competitors is one of the major factors
that heavily incapacitate it.
To maintain its competitive advantage, Woolworths has no other choice but to heavily reduce its
prices, thus preventing it from differentiating in other ways. Moreover, the industry itself is
representing a strategic issue for the brand as both local and foreign competitors are
increasingly present ; this saturates the market and leaves little place for innovation, further
growth and development.

POTENTIAL CONSEQUENCES OF
CRISIS
• Fall of the retail store
• The loss of the reputation and the profitability of the
company in the retail market
• Loss of share and the shareholders from the market
• High level of competition in the retail market
• Demise of the company
• Other small firms are rising