Innovation and Sustainable Development Report: Woolworths Analysis

This report provides a comprehensive analysis of Woolworths' innovative and sustainable business development strategies. It begins with an executive summary outlining the key aspects of the company's current position and the challenges it faces in a highly competitive retail environment. The report delves into the problem statement, highlighting the need for value proposition strategies to enhance the company's competitiveness. It explores portfolio insights, generated solutions, and a detailed solution selection analysis, emphasizing the importance of cost-effectiveness. The value proposition canvas and business model canvas are used to analyze Woolworths' customer segments, value propositions, revenue streams, channels, customer relationships, key activities, resources, partners, and cost structure. Market segmentation, including demographic and beach-head market analysis, is conducted to identify the target customers. The report also covers the minimum viable product, competitive advantages, strategic fit, competitive position, customer desirability, SWOT analysis, and technical and financial viability. Finally, recommendations and a reflection are provided, supported by references and appendices. This report is designed to guide the feasibility of strategies for Woolworths in the business environment.

Running Head: Innovative and Sustaining Development of Business
[Company name]
Innovation and Sustainable Business Development
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Innovative and Sustaining Development of Business 1

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Executive Summary
The below mentioned report elaborates the analysis of the company Woolworths and problem
statement connected with the company. The company is consistently facing high degree of
competition in the retail environment due to which they need to implement value proposition
strategies that increases the competency of the business. Several business model are
discussed in the report to elaborate current position of the company and strategies to enhance
strength of the business. Market segmentation helps in analysing the target group of
Woolworths to whom they should address to increase the competition position in the market.
Furthermore, through the implementation of below-mentioned strategic, Woolworths would
be able to eliminate the problem statement and attain upper hand as well.

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Contents
Introduction................................................................................................................................4
Problem Statement.....................................................................................................................4
Portfolio Insights........................................................................................................................4
Portfolio of Generated Solutions................................................................................................5
Solution Selection Analysis.......................................................................................................5
Value Proposition and Benefits..................................................................................................6
Value Proposition Canvas......................................................................................................6
Business Model Canvas.........................................................................................................7
Targeted Customers...................................................................................................................8
Market Segmentation.............................................................................................................8
Beach-head Market................................................................................................................9
Minimum Viable Product.......................................................................................................9
Competitive Advantage..............................................................................................................9
Strategic Fit............................................................................................................................9
Competitive Position............................................................................................................10
Customer Desirability..............................................................................................................10
SWOT Analysis...................................................................................................................10
Technical feasibility.................................................................................................................11
Financial viability.....................................................................................................................11
Recommendations....................................................................................................................11
Reflection.................................................................................................................................12

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References................................................................................................................................13
Appendices...............................................................................................................................14

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Introduction
The scope of this paper is to enlighten the people with the details about the novel
value proposition of the company Woolworths. The company Woolworths was inaugurated in
the year 1924 in Australia. Being present in retail supermarket segment, the organization face
high level of rivalry in the environment. Further, the paper makes use of technology trends
used by the organization to attain optimum revenue in the market. Novel value proposition
along with several other tools have been implemented in the paper so as to guide the
feasibility of the strategies of Woolworths in the business environment.
Problem Statement
High degree of competition present in the environment is the biggest problem faced
by the company, resulting in which, the organization focuses on innovation trend and use of
technology to attain customer insights and increase revenue. The company aims to make
better use of technology trends so as to reduce the costing of the products and increasing
revenue at the same time.
Portfolio Insights
 Analyzing the industry insights, it should be noted that Woolworths is in biggest fight
with Coles and Aldi to win customer attention in retail environment.
 However, available technology could make the functions of the company more
competent to attain growth in the environment.
 There is a segment untouched by the company that they could target using technology
(Greenland, Gill, & Low, 2019).

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Portfolio of Generated Solutions
Below mentioned is the analysis of solutions that the company could use so as to increase
its competence and win in the competitive market:
 The business could implement change management technique in the company’s
environment, as it would help the business in effectively making changes in the
business environment.
 The organziation could increase its value proposition in the market by strengthening
product portfolio. This activity would increase the power of the organization to
capture large target segment in one go.
 The organization could make use of cost effectiveness strategy by making effective
use of technology in the market segment. This type of strategy would support the
business functioning of the organization as it would help them to attain competitive
advantage by reducing cost and the cost would be used by making better use of
technology (Grimmer, 2019).
Solution Selection Analysis
Based on above mentioned strategies that Woolworths could use to achieve the
desired position in the environment, the business should utilize cost effectiveness strategy in
the target environment. This strategy would help the company to effective capture the interest
of company because it is best suited for the functions of the company. This type of business
strategy is best suited for the organization as it involves the use of most appropriate
technology while providing suitable advantage to the customers as well. It should be
considered that the objective of the organization is to win competition in the environment.
Hence, Woolworths could eliminate competition in the environment by providing higher
level of benefits to the consumers in the society. Along with this, the organization should

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introduce technology in the business environment in such a way that the organization gets
comfortable by using it and the strategy also reduces the costing of the business as well (Fox,
& Hooper, 2018).
Value Proposition and Benefits
Value Proposition Canvas
The innovation and sustainable business development of the company Woolworths
has given several benefits to the organization with the help of which they have successfully
grow in the domestic as well as international environment. The company should make use
available technology in the business environment so as to achieve desired objectives and
eliminate the problems from the business. The strategies of the company are the aspects that
they aims to change in the succeeding years for the company (Bailey, 2017).
The organization aims to change the operational and sales strategies so as to reduce
the costing of the company. In addition, the company should aim to make use of customer
insights strategy to analyze the details about the company in the most critical way. The
organization should focus on getting the raw material in cheaper rates so that they could

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effectively reduce the production costing as well. Further, the customers’ insights analysis
would help the company to capture the interest of appropriate market and subsequently pitch
to those customers only. This strategy would also help the organization to reduce the
marketing cost of the company. Thus, in this way, the company would be able to achieve
novel value proposition in the workplace (Biddle, 2016).
Business Model Canvas
 Customer Segment: the customer segment of Woolworths is large and extensive. They
target price sensitive customers who wants to purchase appropriate products at cost
effective rates. They also targets households and small businesses as well.
 Value Proposition: value proposition of the organization involves providing optimum
products and services to the customers in most cost effective and appropriate way.
The functions of the organization involve reaching to every customer in the market
and offering them products as reasonable rates in the market (Bailey, 2016).
 Revenue Stream: retail system is the major bread earner for the company because
mostly customers purchase products from the retail stores of Woolworths. However,
in this pandemic situations, the customers have started ordering in bulk through online
website of the company. Further, bookings from hotel and poker games are another
revenue streams for the company.
 Channels: apart from supermarket, other segments through which the company earns
revenue are fine dine, website, mobile sites, plus petrol, virtual stores, social media,
discount cards and many more (Merrett, 2019).
 Customer Relationships: throughout these years, the company has managed to earn
reputable recognition in the target market that has helped them to manage appropriate
ties with the customers as well. The company manages effective relationship with
team and culture in the business environment. They aims to provide satisfaction to the

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customers along with quality and experience as well. The organization works on
loyalty program and reward programs to maintain long lasting relationship with the
customers (Mortimer, 2017).
 Key Activities: key activities of Woolworths involve selling of retail products,
inventory management, merchandising, supply chain management strategies,
customer services, product offerings, direct purchasing and managing optimum
pricing strategies as well.
 Key Resources: the company is largest revenue earner in Australian environment,
therefore, they have adequate resources to satisfy the demand in the market. The
company has also started using technology to effectively to manage the demand in the
market. Brand value is a value addition in the resource category of the company.
 Key Partners: key people for the business involves advertisers, subsidiaries, investors,
suppliers, franchisees, associates, venture partners and employees working in own and
subsidiary brands (Jie, & Gengatharen, 2019).
 Cost Structure: salary, wages, rent, maintenance, cost of goods, office cost, taxes etc.
are some of the costs that the company manages on a regular basis.
Targeted Customers
Market Segmentation
The company should target the customers using customer insight index so as to
capture their interest in a better way. The organziation should target consumers on the basis
of demographic segment; they should target people belonging to middle as well as lower
income level segment present in the market. They should target people irrespective of their
gender and they should also target people belonging to age group of 20 to 55 years. They are
the people who prefer taking cost effective products in the environment and show loyalty

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towards the organization as well. These are the customers who do not like changing their
quality of products or brand and prefer same brands for a long time (Grimmer, 2018).
Beach-head Market
On the basis of this type of segmentation, the company should target people belonging
to the age group of 25 to 35 years. These are the people who usually initiate online purchases
in the market and have ultimate trust on the brand and its product quality as well. Also, they
should mainly target the people belonging in Australia.
Minimum Viable Product
Minimum viable product refers to the version of a product with enough features to
satisfy the customers and provide feedback for future scope of improvement as well. Thus,
considering the minimum viable product for the company Woolworths, it should be noted
that the company should keep the essential goods near the counter racks so as to keep it in
front of the eyes of the customers. Also, the company should keep a feedback for form so as
to let the customers analyze the scope of improvement and then let the company know about
it as well.
Competitive Advantage
Strategic Fit
These strategies of Woolworths acts as a strategic fit for the company as it aids them
to achieve competitive advantage in the business segment while considering business
objectives. Given strategies of the company would subsequently help the company to capture
the interest of right target segment in the market. The strategies of Woolworths would attract
the interest of Australian customers and it would also help them to attain the retail products in
difficult situations like COVID-19 as well by making use of online segment of the business.
The corporate strategy of the business works to maintain absolute focus on providing best in

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class as well as innovative cost effective products in the marketplace (Nakandala, & Lau,
2019).
Competitive Position
The cost effective model is the biggest factor that helps the company to receive upper
hand. Further, the combination of cost effective model with the use of appropriate technology
subsequently became the reason for competitive advantage of the company. It should be
noted that the availability of resources and use of those resources to provide best advantage to
the organization acts as the biggest competitive advantage for Woolworths. Customer
satisfaction is the reason, Woolworths has attained competitive advantage in the business
environment (Morelli 2018).
Customer Desirability
SWOT Analysis
 Strengths: availability of large number resources and strong brand reputation is the
biggest strength of the company in the business environment. Also, efficient use of
technology helps them to maintain competence in the international market.
 Weakness: high degree of competition is the biggest weakness of the company that
lets them suffer in the market and reduce its competence.
 Opportunities: use of available and technology to eliminate competition and stepping
foot in different target segment also acts as an opportunity for Woolworths.
 Threats: increasing cost of the raw material, technology and labor could act as biggest
threat for the company Woolworths (Bailey, 2020).