MKT103: Opportunity Analysis of Woolworths Retail Business

This report conducts an opportunity analysis for Woolworths, a prominent Australian retail company. It begins with a company description and problem statement, followed by an in-depth company analysis. The market overview examines customer demand and sustainability efforts. The macro environment analysis evaluates political, economic, social, technological, legal, and environmental factors. The micro environment analysis assesses the company's strengths and weaknesses, while competitor analysis compares Woolworths to Walmart, Kroger, and Amazon. Consumer analysis identifies the target customer base and purchasing habits. A SWOT analysis summarizes the company's strengths, weaknesses, opportunities, and threats. The report concludes with SMART objectives, aiming to increase brand awareness and market coverage. References are also included, providing supporting evidence for the analysis.

Opportunity analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
Company description and problem statement.............................................................................1
Company analysis.......................................................................................................................1
Market overview.........................................................................................................................1
Macro environment analysis.......................................................................................................1
Micro environment analysis........................................................................................................3
Competitor analysis.....................................................................................................................3
Consumer analysis......................................................................................................................5
SWOT analysis............................................................................................................................6
SMART objectives......................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The current report is based upon the opportunity analysis for the chosen company in
which situational analysis is perform by using Pestle and SWOT analysis. Also it determine the
main competitor through which the objectives are set which in turn lead to stay ahead in the
competition.
Company description and problem statement
Woolworths is the major Australian company under retail sector that provide range of
products to their customers. Being a brand image at international level, there is a need to focus
on the marketing plan so that new customers are attracted towards it. Though company uses
strong marketing strategies but there is a need to focus upon this so that it will help to raise
customer base and raise financial performance as well .
Company analysis
Woolworths is the brand name at all over world as it was established in 1924 which is
owned by Woolworths Group and in last year, there were around 980 stores and 43 different
metro convenience stores. It also provide online home delivery to the customer that shows
company is focused upon customers.
Mission: To provide best quality of product to customer by valuing their need.
Vision: To be a leader in retail brands by take care of product's quality, innovation and
sustainability.
Staff: Company employee more than 2 lac people who serve around million customer across
and also have trusted partners of farmers and manufacturers.
key capabilities: Low cost product, high quality, strong workforce are consider the key
capabilities.
Market overview
The customer demand is keep changes but retail sector keep complying with the same in
order to satisfy the need. In the same way, Woolworths is also start focusing upon sustainability
and keep providing recyclable product which in turn assist to meet the demand of customers.
Thus, as per the annual report of a quoted firm, it is analysed that it keep innovating new product
in order to let customer satisfy and meet the demand.
Macro environment analysis
Factors Explanation
1

Political  It is the intervention impose by government which affect the
business performance. Like political stability means smooth
functioning of business (Perera, 2017).
 Changes in laws by government also creates negative impact upon
the business performance. Like tax rate.
 The trade barrier also affect the financial performance of a firm.
Even Woolworths is operating at different country and this harm
company by creating obstacle in the export.
Economic  High GDP rate of Australia help the business to run easily.
 Changes in the inflation rate affect the consumption of buyers and
this decrease the sales.
 Fluctuation in exchange rate of country affect the prices of offered
product and decrease sales.
Social  Changes in customer preference affect the business in adverse
manner.
 Customer prefer to use low price product without considering the
quality that cause harm to Woolworths reputation.
 Also, poor relationships with the suppliers also lead to change the
entire business culture (Macro environment analysis of
Woolworths., 2020).
Technological  There is a need to use online marketing product which help to
attract range of product.
 Company need to uses techniques related to inventory such that
online inventory software that save time.
 Company should offer online product which in turn assist to attract
range of customers.
Legal  Different legislation in different used to create the issue for the
company
 Compiling all the activity with the legal aspect used to create good
2

sort of the issue for the company
 Compiling all the activity with the legal activity help company in
building good image
Environmental  Using recycle packaging help company in overcoming variety of
environmental issue
 Compiling all the activity with the environmental factor used to
increase the cost of company
 Environmental factor also used to create the hurdle in the
organization in term of using natural resources.
Micro environment analysis
Company analysis
Positive trait
 One of the biggest retailer chain in the Australia as offers the variety of the product in the stores
 Has good financial position on the basis of the good performance in the market in the past
 Has very good image in the eye of the consumer due to quality of the product offer in the market.
Negative Trait
Not having that good customer service team
Take time to adopt new technique in the organization
Looking at the company, it has been analyzed that company used to maintain a good sort of the
reputation in the market with the help of the good quality of the product in the market. Also it
helps the company in attracting the eye of the consumer but at the same time the customer
service of the company is not that great (Guo, L & et.al., 2017).
Competitor analysis
There are variety of the different type of the competitor of Woolworths. Competitor analysis is
as follows:
Similarity Difference
Walmart Both the company used to
offer the large number of the
product in the market.
Walmart is more toward the
food product, at the same time
Woolworths is toward the
3

Both the company is having
good sort of market area
coverage in the market
cloths product.
Both the company used to
follow the different working
culture in the market.
Kroger Both the company used to
offer the same line of the
product in the market.
Both the company uses the
same pricing strategy in the
market.
Market area coverage of
Kroger is not that great in the
market.
Good will of the company in
the market is not that good as
Woolworths in the market.
Amazon Both the company is having
good financial position
Both the company used to
offer the large number of the
product in the market
(McKenzie, J., & Hunter, C. A.
2018).
Difference in the way of
working of both the company.
Customer service of Amazon
is way better than the
Competitive market Summary
Competitor Target
Market
Positionin
g
Product Pric
e
Promotion
al
Distributio
n
Strength/
Weakness
Walmart Target
wider
customer
base
Cost
Positing
strategy
All
category of
product
Ski
mmi
ng
advertisin
g
Direct Goodwill
and
financial
position/lo
w profit
4

margin
Kroger Primary
Target
Market
Quality
positionin
g strategy
All
category of
product
pen
etrat
ion
direct
marketing
Direct Quality of
product/
low
market are
coverage
Amazon Primary
Target
Market
Flexible
positionin
g Strategy
All
category of
product
Ski
mmi
ng
sales
promotio
n
direct Main
Strength
Main
Weakness/
s
Consumer analysis
Who are the main consumers Main target customer base of the company is
the earning individual as organization used to
offer the product which can be consume by all
the age group individual. So there is no
specific target customer base of the company.
What products do they purchase? Looking at the purchase habit it can be
analysed that customer used to purchase all the
category of the product, They generally used to
purchase the day to day use and also there are
many product who's demand used to depend
upon the whether (Gürel, E., & Tat, M. 2017).
5

When do they purchase these products? They generally used to purchase the product of
the company through out the year, as they used
to also offer the daily usage product in the
store. Also there are some product who's need
generally occur depending upon the season.
Where do they purchase these products They generally used to purchase the product
from the store also they used to purchase the
product of the company from the online
website of the company.
How do they purchase There are many different option through which
they can make the payment of the product.
Such as they can purchase cash on delivery,
they can use the debit and credit card as well.
SWOT analysis
Strength
 Goodwill: it is the biggest strength of the company in the long run, as it has been
identified that organization is able to build good goodwill of the company in the market
with the help of the quality of the product which is offer by the company in the market in
the long run.
 Product line: Company used to offer the variety of the different type of the product in the
market to attract the eye of the customer toward the different product of the company in
the market.
Weakness
 Profit margin: Company used to keep the profit margin at very low to attract the eye of
the different consumer toward the product of the company and offer the variety of the
product at nominal rate.
 Customer service: Customer service of the company in the market is not that great as
compare to the other competitor in the market (Biancamaria, Lettenmaier & Pavelsky,
2016).
Opportunity
6

 Expansion: There is good opportunity in front of the company to expand their business to
the new boundaries to improve the market area coverage of the company in the market.
Threat
 Competition: It is the biggest threat in front of the company as there are many competitor
who used to operate in the market./
SMART objectives
There are two main objective of the company in the market
 To increase the brand awareness of the company by 20 percent in coming year by using
different promotional tool
 To enhance the market area coverage of the company by 10 percent in coming year with
the help of expansion
7

REFERENCES
Books and Journals
Guo, L & et.al., (2017). Automated competitor analysis using big data analytics. Business Process
Management Journal.
Caber, M., Albayrak, T., & İsmayıllı, T. (2017, April). Analysis of congress destinations' competitiveness
using importance performance competitor analysis. In Journal of Convention & Event
Tourism (Vol. 18, No. 2, pp. 100-117). Routledge.
McKenzie, J., & Hunter, C. A. (2018). Competitor analysis of functional group H-bond donor and acceptor
properties using the Cambridge Structural Database. Physical Chemistry Chemical
Physics. 20(39). 25324-25334.
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International Social
Research, 10(51).
Biancamaria, S., Lettenmaier, D. P., & Pavelsky, T. M. (2016). The SWOT mission and its capabilities for
land hydrology. Surveys in Geophysics, 37(2), 307-337.
Perera, R., (2017). The PESTLE analysis. Nerdynaut.
Online
Macro environment analysis of Woolworths. 2020. [Online]. Available through :
<https://www.swotandpestle.com/woolworths-limited/>.
8