Innovation and Sustainable Business Development Report: Woolworths

This report analyzes Woolworths Limited, an Australian supermarket chain, focusing on its innovation and sustainable business development. It identifies challenges in integrated marketing communications, consumer cycles, and market growth. The report explores solution concepts, emphasizing the innovation adoption model and effective communication strategies. It details Woolworths' value proposition, targeting middle-aged consumers with fresh and healthy food options. Competitive advantages, strategic fit, and potential uncertainties like customer desirability, technical feasibility, and financial viability are also discussed. The report concludes with recommendations for improving Woolworths' operations, fostering innovation, and ensuring sustainable growth in a competitive market.

Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Student’s Name
University Name
Author note

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Executive summary
The purpose of this report is to develop innovation insights and practices of the chosen
business organization that is Woolworths limited, but developing value proposition aligned
with the strategies of the business. The report analyzes the business scenario and identifies
the problem or issues faced by Woolworths. The report also provides solutions concept and
indicates the concepts that is to be emphasized by the business. Further, it determines the
value proposition, target market segmentation, competitive advantage of the business and the
strategies that are suitable for the business organization. Moreover, it determines the
assumptions of uncertainness that can be faced by the organization. Lastly, it sums up the
main points from the findings and concludes the report.

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Table of Contents
Introduction................................................................................................................................3
Description and analysis............................................................................................................3
Analysis of the problems............................................................................................................3
Solution concepts and selection analysis...................................................................................4
Value proposition and benefits...................................................................................................5
Targeted customers....................................................................................................................6
Competitive advantage...............................................................................................................6
Strategic fit.................................................................................................................................7
Assumptions to uncertainties.....................................................................................................8
Conclusion................................................................................................................................10
Self reflection on assessment 1................................................................................................11
References................................................................................................................................12

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Introduction
Value proposition is considered to be the key for successful innovation practices of
the business organization. In this highly competitive and ever changing business
environment, innovation and value proposition has gained much importance. Innovation in
business organization becomes successful when there is a positive outcome on the return on
investment. The business organization must consider the perceived value of the customers in
the process of innovating the products and services. The report analyzes the existing
organization Woolworths limited to analyze the problems faced and develop value
proposition considering the desirability and feasibility of the business organization.
Woolworths limited is an Australian Supermarket chain which specialized in grocery food
items and other essential products and services for their valuable customers (Woolworths
Supermarket 2020). The report provides solutions to the problems faced by the business
organization.
Description and analysis
Analysis of the problems
As per research and analysis, it has been identified that Woolworths has been facing
challenges in integrated marketing communications, slow consumer cycle and slow growth
rate in the market. It has been identified that the consumers are increasingly focused on health
conscious consumption, fresh foods and grocery categories (Clemons, 2019). However, lack

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of product and service innovation along with hindrances in communication process with the
major stakeholders alleviates the problem faced by the business organization. The customer
satisfaction rate of the business organization continues to slow down due to lack of integrated
communication process and strategies at various organizational levels of management
(Mkansi & Nsakanda, 2019). It has been further determined that the business organization
has limited target audience and lack of effective communication which results in less volume
growth in business organization. It has been criticized that the business organization lacks
effective communication strategies and marketing strategies. This reduces the market share of
the business organization in the market. As per latest reports, the profit margins from the
previous years have slow growth rate as compared to other competing firms in the market
such as Coles and Aldi. It has also been argued by Sundström and Grindestam, (2018), that
due to increased competitive pressures from the external environment such as advanced
development of technology and increased competition.
Solution concepts and selection analysis
From the above analysis and problem identification, it can be said that there are
certain managerial implications in the business organization. Therefore, the business
organization must focus on managerial decisions and operations of the business organization.
The managers and the leaders of the business organization must focus mainly on creative
sessions and annual reviews along with all the members of the business organization
(Vojvodić, 2019). It the top level managers and the executives of the business organization
must focus on marketing department to overcome the problems and issues faced. The
marketing initiatives, programs and promotional campaigns of the business organization must
be reviewed by the business organization. The business organization must focus on internal
marketing process (Lubjuhn et al., 2019).. It is also recommended that the business

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organization must focus on clear communication and ensure effective communication in all
the levels of the business organization. The organization can also focus on innovation
adoption model and invest heavily on promotional activities to provide valuable information
to the target audience regarding the products and services offered as well as its uniqueness
(Lubjuhn et al., 2019)..
Among the above mentioned solutions to the problems, it is essential for the business
organization to mainly focus on the concept of innovation adoption model. The company
must mainly focus on this concept considering the competitive business environment in
which the company operates it (Yeh, 2016). It must ensure sustainability in the market and
maintain its competitiveness in the market through innovation which can be attained through
creative and effective value proposition. The company must also focus on contemporary
model of communication in order to attract the customers in the business organization (Yeh,
2016). This concept will also enable the business organization to engage with the potential
stakeholders of the business organization and mitigate the issue faced.
Value proposition and benefits
The tag line of the company is ‘Woolworth stays fresh’ which suggests that the
products and services offered to the customers are ‘fresh, healthy and tasty food’
(Woolworths Supermarket 2020). The products and services offered by the business
organization mainly caters to the force needs of the consumers with varied range of food
options such as staples, convenience food items, healthy nutrient foods and freshly made
foods. The services provided by the business organization are convenient and effective for the
customers. These service offerings ensure customer experience (Morioka et al., 2016).. The
operating model of the business organization must be changed from time to time as per the

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changes prevailing in the market. The business organization must ensure productivity and
retain the customers through its effective value proposition.
Targeted customers
Considering the present situation of Woolworths limited, it has been offering its
products and services to the customers through both online mediums as well as brick and
mortar stores located throughout the country. The target audience of the customers are the
middle age group consumers in the market (Rezazadeh & Carvalho 2018).. The company also
targets old age people, teenagers as per their product characteristics. The business
organization connects with the potential consumers through online activities and initiatives.
The business organization must focus on improving the quality of the product and innovating
its product offerings to the potential target consumers in the market. This might have positive
impact on the managerial and operations of the business organizations (Phillips & Phillips,
2017). Considering the latest consumer trends, the customers are increasingly focused on
fresh products and healthy food products. Food and grocery sector among other wide range of
products and services are one of the top revenue generating department for the business
organization. Hence, the business needs to take extra effort in providing products and
services as per the needs and preferences of the business organization (Rezazadeh &
Carvalho 2018).. The business organization provides various attractive facilities to the
customers such as discount offers, coupons and loyalty cards to increase the value and
perception of the service offering among the consumers. These tactics ensure customer
retention in the business organization.

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Competitive advantage
It has been analyzed that the business organization has been successful in retaining
loyal customers in the business organization through its ability to offers high quality, fresh
products to the customers. This provides a competitive edge to the business. Apart from that,
the effective supply chain management of the business organization also ensures its
competitions in the market (Mehregany, 2018)..
Business model description
Figure 1: Business model
Source : (Harmse, 2017).
The structure of the business organization includes the strategies that must be
implemented by the business organization in order to maintain its sustainability and

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competitiveness in the market. This structure ensures flexibility in all the levels of the
business organization considering the dynamic business environment (Harmse, 2017). The
business organization must build a strong foundation, offer good quality products at right
prices to create a successful future.
Strategic fit
As mentioned earlier, the business organization must emphasis on effective
communication to engage with the potential stakeholders of the business organization. The
stakeholders of the business organization must be included during a decision making. The
strategy is to implement a contemporary model of communication in the business
organization (Coffelt, Baker & Corey, 2016). The model of communication is described
below with the help of a diagram:
Figure 2: Communication model
Source: (Coffelt, Baker & Corey, 2016).
The model of communication must be incorporated for developing a communication strategy.
The business organization must maintain a team culture and improve the process of
communication in the organization (Passera, Kankaanranta & Louhiala-Salminen, 2017)..

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Feedback is crucial element in the process of effective communication, therefore feedback
must be analyzed. Further, the business must incorporate strategies to provide personalized
and convenient services to the customers. They must differentiate their product offerings
from the customers by create efficient food customer propositions through innovation and
development. The value of the company’s portfolio must be communicated to the potential
customers of the business organization or the target audience (Mehregany, 2018)..
Assumptions to uncertainties
Customer desirability – One of the major uncertainties that are faced by the business
organization is consistent customer desirability. The desirability of the customers must be
consistent. This is vital for the business organization to maintain its profitability in the future.
This determines the progress of the business organization and revue generation for the
business organization (Rezazadeh & Carvalho 2018).. In order to maintain that the business
organization must consider the external and internal business environment and assess the
opportunities and threats that can be faced by the business organizations. The business
organization must assess the needs and changes in the preferences of the consumers. For
instance, the environmental impacts have worsened in the world, therefore, sustainable
resources and use of renewable resources must be implemented by the business (Mukonza &
Swarts, 2018). The initiatives taken by the business organization must be communicated to
the stakeholders to ensure customer desirability.
Technical feasibility – Rapid technological development and improvements are some of the
uncertainties that can be faced by the business organization. It is essential for the business
organization to incorporate new advanced technology and innovation in the operational
process to maintain its sustainability and competitiveness in the business environment (Bovée
et al., 2016).. The business organization must increase its presence on the social media

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platforms to engage with the target audience and interact with them; this might improve the
customer satisfaction level and create a positive impact on the business organization.
Therefore, the business organization must implement latest technologies to improve the
positioning and perception of the business organization (Phillips & Phillips, 2017). . This will
enable the business organization to solve the issues and the challenges that is faced in the
dynamic and competitive business environment.
Financial viability – The business organization might also face financial uncertainty
throughout the course of the business operations. It is vital for the business organization to
increase the potential of the business organization through effective allocation of resources.
The financial department must consider detailed costing along with economic evaluation
which might increase the potentiality of the business organization (Rezazadeh & Carvalho
2018).. The business must consider economic evaluation and settle down the costs of the
products. It is also essential for the business organization to gain competitive advantage in
managing the resources of the business in an effective manner. The funds and other resources
of the business organization must be invested and allocated in an effective manner
(Rezazadeh & Carvalho 2018).. This will improve the business operations thereby ensuring
growth and sustainability.
Conclusion
Therefore, from the above analysis, it can be concluded that Woolworths limited has
been facing managerial issues in the organization considering its operations, lack of
innovation and lack of effective communication. That report has provided detailed analysis of
the problems and issues faced by the business organization and provided solutions and

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alterative solutions to the problems. It has identified that the business organization must focus
on implementing effective model of communication and engage with the stakeholders in
various decision making process of the business organization. Further, the report has
identified that target audience, competitive advantage and strategies for the business
organization. It has identified that uncertainties faced by the business.
Selected innovation tools and techniques
Business model, target market segmentation, key assumptions, competitive
positioning and value proposition has been used as innovation tools and techniques in order
to support the report and findings. Through the implementation and adoption of these
innovation tools, the business organization will be able to overcome the issues and the
problems faced and maintain sustainability and profitability in the market. Each of the tools
and the techniques used in the report will be effective to overcome the issues faced by the
business organization.
Self reflection on assessment 1
The model and the assessment have increased my knowledge base and gain relevant
innovation insights. This assignment has helped me to understand the application of
innovation tools and techniques in real business scenario. I have been able to analyze the
possible problems, challenges and issues that can be faced by a business organization
considering the external and internal business environment. I have gained in-depth
knowledge regarding the business environment, value proposition and developing business
model that can benefit a particular business organization. To sum up, this assessment has
helped me to understand some core business concepts and its applicability in the real business
scenario.