BIG W: Comprehensive Market Analysis and Strategic Recommendations

This report provides a comprehensive market analysis of BIG W, an Australian discount department store. It begins with an introduction to the company, followed by a SWOT analysis that identifies key opportunities and threats, such as online retail growth and supplier bargaining power. A PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors impacting the business. Porter's Five Forces analysis assesses industry competition, potential new entrants, supplier and buyer power, and the threat of substitutes. The marketing mix is analyzed through the 4Ps (Product, Price, Place, and Promotion) and expanded to include People, Physical Evidence, and Processes. Finally, the report offers strategic recommendations for improving the organization's current situation and enhancing relationships with customers, using frameworks like Ansoff's Growth Matrix and Porter’s Generic Strategies and their implementation. The report aims to provide insights into BIG W's market position and suggest ways to improve its performance.

Running head: BIG W
BIG W
Name of the Student:
Name of the University:
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Introduction:
The Big w is the chain of the Woolworth Groups, which is basically a departmental store.
The Woolworth group in an endeavor to better the shopping experiences of the consumers had
developed this chain of organization. The aim of the organizational members was to provide the
consumers with ultimate shopping experiences, with their one- stop- shopping approach. The
prime motive of the organization was to provide the customers with everything under one roof,
and added a brand recognition to the company. The company grew out of the variety stores
nature, and became big, where the customers can get everything and they can choose among the
products on their own (Surdam, 2020). Today Big W is one of the largest organizations in the
country Australia, with more than 180 branches all across the country, and the second company
to avail the service of self- checkout, the organization has alps changed its nature of business,
and now it is also regarded as the discounted departmental store of the country.
Therefore, in the present article, a SWOT and PESTLE analysis of the company will be
presented. Along with that market and the products of the company will be analyzed through the
tool of Marketing Mix and the business orientation and the business approach of the organization
will also be analyzed, with Porter’s Analysis. However, in the SWOT analysis segment only the
threats and the opportunities of the organization will be included.
SWOT Analysis:
According to the market analysts the organization is viewed with an amole amount of
opportunities in the market, about along with that there are certain associated threats that the
organization is likely to observe or is observing. However, primarily the areas of opportunities
will be discussed and then the threat areas will be reviewed.

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o First, the organization has a huge exposure in the online retail market, and as per the
market analysts, the organization is drawing more revenue through the online retail
market than through the physical stores (Spillan, & Ling, 2015).
o Secondly, the development of the technology, and the huge practice of digital marketing
has created for the organization, ample amount of opportunities. The e- commerce
industry is currently characterized with much further growth, which directly determines
that the market opportunities for the company is likely to increase. Also, the
technological development has created a huge social media which is the best channel for
market promotion (Suriadi et al., 2017).
o Thirdly the growing population and the increasing rate of globalization all have
contributed positively towards the growth of the company. The increasing rate of
globalization, and the reach of the social media across the world determines extensive
business opportunities for the company (Spillan, & Ling, 2015). Along with that,
according to the market analysts the reduced rate of inflation is the right time for the
company to invest more, and draw more revenue.
Now, it is important to discuss about the factors that poses threats to the company.
 Firstly, the major threatening factor is the increasing bargaining rate of the suppliers. This
is affecting the business of the company, as well as the supply chain management of the
same (Spillan, & Ling, 2015).
 Another important factor o threat is the new market entries. The growing number of
organizations stepping into the online retail market is posing a threat to the company, and
along with an increase in the new entrants there is also an increase in the replicated
products at a very low price. This is also affecting the business of the company (Spillan,

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& Ling, 2015). A detailed discussion if the new entries will be discussed in the analysis
of marketing mix for the company.
 Lastly, another major area of challenge that the organization is facing is the continuous
up gradation of the technology. The continuous technological developments are
determining the requirements of the new staff members who have the knowledge of the
updated developments in the technological field (Suriadi et al., 2017). This also requires a
training department where the existing employees can be trained with the knowledge of
the new developments.
PESTLE Analysis:
The PESTLE analysis of an organization helps in understanding the external market for
the organization. A concise description of the PESTLE analysis of the organization is provided
in the following.
P- Political:
Big W is the chain of the Woolworth which is one of the largest organizations in the
country as well as across the world. Therefore, the political undertaking of the country, severely
affect as well as benefit the market of the organization. For example the recent ban on the use of
the plastics in the country has affected the organization, as a huge base of the manufacturing
department was also included in this business (Davey, & Richards, 2013). But more importantly,
the foreign relationship of the country, with USA, China, and Europe, impacts upon the market
and the revenue of the company. It influences the financial position of the company in a very
positive way.

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E- Economic:
The entries of new organizations and the increased market competition has worsened the
financial or the economic position of the company. The increased rates of competitions, and the
developments of newer products, which is low priced has affected the business of the company,
and hence, the organization had to come up with product and market diversifications, and the
organization is aiming to provide the consumers with better opportunities for their relationship
with Big W (Methner, 2013). The organization has started certain loyalty programs to better the
customer relationship. However, in the last economic year, the organization failed to achieve or
observe the amount of growth that it had claimed, rather, the organization is perceived with a
huge stock loss.
S- Social:
The company initially was striving to make a good social impact and to increase its
customer base, thus. However the organization has now successfully understood the changing
trends of the market and the customers and therefore, has included products which will be
catering the needs of the current society (Methner, 2013). The organization has rightly involved a
product diversification and therefore, has included a green and sustainable approach in the
products, and this includes all the types of articles, that is, from food to fabric, the organization
has included a sustainable approach (Learn, 2019).
T- Technological:
The technological aspects is the most important aspect of the organizations, and the
company is even getting certain amount of help from the mother organization as well. The
organization is continuously trying to upgrade its technological endeavors and has been included

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in a continuous hiring process for their information technology team. Also, a training process has
also been included (Berning, 2014).
L- Legal:
The organization ensures the maintenance of the organizational laws and the corporate
laws. Also the foreign relationship laws of the country are also maintained. Recently, the legal
regulations upon the factors of climate change has also been included (Methner, 2013).
E- Environmental:
The organization has included a sustainable approach into its orientation on order to
ensure a positive contribution in the society and in the environment. Also, the recent happenings
in the country, as well as the increasing temperature of the country, also needs a sustainable
approach from all the organizations and Big W, being the chain of the markets organizations of
the country is aiming to contribute positively in this ground (Berning, 2014).
Porter’s Analysis:
The porter’s analysis of Big W, will help to get an idea of the industry. There are five
basic elements and a detailed discussion of these elements are provided in the following.

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External
Competition:
This is one of the most important barrier of the organization from
growth. The prime business of the organization is now in online, and
there are increasing number of competition in the market. Amazon,
Wes farmers, Tesla, and the like are some of the big and giant
organizations which are taking up the position and the customers of
the organization (Whelan, & Walsh, 2014). Considering the present
scenario, the organization has lost quite a bit of its market share.
Threat from the New
Entries:
With the rise of the online retail world and with the increasing
development of the technological aspects of the company, it is likely
that there will be new members in the online retail world, and it is
observed that in the past three years the numbers of the new market
entries are continuously on rise, and it is creating a quite a
threatening position for the comoany (Desai, 2019). These new
organizations are offering very low price and at the same time, and a
sustainable business. However, the organization yet, has a good
market share, which is a positive aspect for the company.
Bargaining Power of
the Buyers:
The huge options with the rise of the new companies and with
the existing old ones as well, the organization is facing a huge threat
as well as loss. The customers now, have a number of options and
they can choose easily amongst all (Govender, 2017). Also, the low
prices from Amazon, and the Aldi are also posing a threatening
situations for the organization.

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Bargaining Power of
the Suppliers:
This is an important factor and drawback for the company which is
newly generated. The increased rate of competition has now provided
the suppliers with huge options (Learn, 2019). Previously, there were
limited number of good market players, but it is now increasing.
However, with the product diversification approach, the supply chain
management system is now revived (Desai, 2019).
Threat of Substitute
Products:
Along with the product diversification, there are limited number of
substitute products in the market. However, the brand identity of Big
W, and a good market share are another two factors which reduces
the impact of this threat position (Learn, 2019).
Marketing Mix:
In this article the 4Ps of the market will be analyzed under the marketing mix approach.
The 4Ps of the market include, Product, Price, Place and Promotion.
Product:
Big W is the segment of the largest retailer house of the country, with the first idea of
retailing in the country as well. Therefore, it includes a huge range of products. From the basic
toiletry needs to the luxury items all are available in this retailing house (Mhlanga, 2018). More
importantly, following the changing trends of the customers the organizations has also included
products and items which are characterized with a sustainable attitude.

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Price:
The products of the organization are available at a similar or a little higher price than the
market. Most of the articles found in the market are kept at the similar price rage with that of the
market, however, for some of the products the organization has kept the prices at a little higher
range, and this is essentially for the brand identity that is associated with the products (Mhlanga,
2018).
Place:
Big W is one of the largest retail organization of the country, and being a part of one of
the largest retailing organizations of the world, the organization enjoys a huge market exposure.
It has a similar popularity and exposure in New Zealand as well. Apart from this, it has a good
market base in USA, and in Europe as well (Mhlanga, 2018). However, Austria, and New
Zealand are the two countries, from where the organization draws a huge amount of foreign
revenue.
Promotion:
The organization mostly conducts most of its promotional planning online, through the
social media. The organization employs a special focus on the grounds of innovation. The CSR
activities and the camping programs are two of them. The organization mostly involves into
camping activities for promotional purposes, for example, the Fresh Food Campaign, which was
one of the most successful campaign and promotional program of the organization (Mhlanga,
2018).

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People:
The company has the best management program for diversity. The organization not only
values its customers but at the same time, it values its staffs as well, and provides special
attention to the needs and the requirements of the employees.
Process:
The prime aim of the organization is customer satisfaction. Therefore, the organization
ensures on providing the best customer experience and the customer care and management
department of the organizations is very effective.
Physical Evidence:
The stores are posited across the country in a very strategic manner, and the outlets are
very organized. The organization of the stores are very user friendly, and are kept neat and tidy
all the time.
Conclusion and Recommendations:
The former strategic analysis of the company has highlighted upon certain drawbacks of
the company as well as certain positions of threat for the company, therefore, in the following
certain recommendations is mentioned, developing upon Ansoff Matrix.
 Firstly, as per the analysis of the company, using the Ansoff matrix, it is recommended
that Big W must focus more on entering into the new markets. The organizations has a
huge global opportunity, and if the supply chain management of the business can be
made stronger, then the organization can easily experience a robust market expansion and
strong revenue.

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 Secondly, the organization must focus more on product development. With the changes
in the marketing trends and requirements of the people, it is very important for the
company to include more innovation, and therefore, up gradation of the products.

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Appendix:

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