Digital Business Analysis Report: Woolworths' Competitive Landscape

This report provides a comprehensive analysis of Woolworths' digital business, examining the challenges and opportunities it faces in the competitive Australian market, particularly with the entry of Amazon. The report identifies two critical issues: poor online customer service and product pricing strategies, which are key areas for improvement to enhance Woolworths' market position. It highlights the importance of improving online customer service through better staff training and responsiveness, and the need to review pricing strategies to remain competitive. The analysis emphasizes the impact of Amazon's presence and suggests strategies for Woolworths to maintain and grow its market share by focusing on customer satisfaction, competitive pricing, and adapting to the evolving digital landscape. The report underscores the necessity for Woolworths to address these issues to remain competitive and successful in the Australian grocery market, offering insights into the company's current position and future prospects.

Running Head: DIGITAL BUSINESS: WOOLWORTHS
Digital Business: Woolworths
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2DIGITAL BUSINESS: WOOLWORTHS
Executive Summary
The research paper focuses on the digital business of Woolworths and assist them to
understand the needs as well as the wants of the consumers in the market. The paper provides
a transparent ideas regarding the issues that is being faced by the organization in the market
and help them achieve the success in it. The firm need to focus on the issues so that they can
flourish in the marketplace and can achieve what they are intending to obtain from the
market. Lastly, the study provides a clear idea why it is crucial for the organization to look
after the matter and help them to accomplish the success in the marketplace.

3DIGITAL BUSINESS: WOOLWORTHS
Table of Contents
Introduction................................................................................................................................4
Issues faced by Woolworths.......................................................................................................4
Poor Online Customer Service...............................................................................................5
Price of the Product................................................................................................................7
Conclusion..................................................................................................................................9
References................................................................................................................................10

4DIGITAL BUSINESS: WOOLWORTHS
Introduction
Woolworths is one of the Australian supermarket chain as well as the grocery store.
The company is establish in the year 1924, by five entrepreneur namely Percy Christmas,
George Creed along with Stanley Chatterton, Ernest Williams and Cecil Scott Waine (Dos
Santos, Svensson and Padin 2013). The organization enjoy a duopoly market in Australia
with the Coles. The company mainly sales the groceries, home appliances, pet and baby
supplies, health and beauty products as well as magazines and DVD. These enables the
company to lure the customers from the market and enable them to generate revenue in the
process (Knox 2015).
In current time, Amazon which is an online base company is entering the Australian
market so as to they can capture the market (Verma 2018). The organization is creating threat
for the Woolworths by enabling the customers to shop grocery products from the application
of the company. These create a threat for Woolworths as they are attracting the customers to
shop online. There are issues which need to be address by the Woolworths so that they can
enhance their position in the marketplace and can lure the consumers towards them to
generate revenue in the process (Arli et al. 2013). Therefore, the company need to focus on
the problems both internal as well as external so that they can eliminate them from their
business model, which will benefit them to some extent.
Issues faced by Woolworths
There are two critical issues which need to be address by the company so that they
can provide better quality service to the consumers and enable them to grow in the
marketplace. These issues need to be address by the company immediately so that they can
capture a huge market share and can compete with the Amazon in the Australian market

5DIGITAL BUSINESS: WOOLWORTHS
(Berning 2014). The two critical issues that should be the main focus point of the company so
that they can compete in the market are:
 Poor online customer service
 Price of the products
Poor Online Customer Service
Woolworths is lacking behind in providing good quality online customer service,
which is necessary for the organization to expand in the marketplace and to gain popularity in
it. The customers are not satisfied with the service that the company provide them online,
which automatically turn down the interest of the consumers (Whelan and Walsh 2014). The
customers mainly complaint that when they try to order something from the application or
from the website the executive show less involvement and that is the important reason the
company is unable to attract the consumers from the marketplace (Feigin 2016). These is a
huge problem that the company face in the process and it needs to be address by the
organization in an effective way possible as in the current times people are more into the
digital media and to make lure them the company needs to provide better quality of service to
them or else this might affect the image of the company.
The firm needs to train the candidates in an effective way possible so that they can
communicate with the customers online, which will assist the company to lure the consumers
when they will get proper service by the company. These is necessary for the company if they
are willing to compete with the Amazon who provide better online services to the customers.
As per the research this has been found that consumers are more into the online shopping in
current times and that is the main reason the service need to be satisfactory from the company
or else they will be not in a position so as to compete in the marketplace (Parkinson 2018).

6DIGITAL BUSINESS: WOOLWORTHS
There are few things that the company need to keep in mind so that they can improve
their online customer service, which will enable the organization so as to lure the customers
from the market and to avail services from the company. The tips that need to be look after
by the company are:
 The company need to make clear in their mind regarding the requirement of the
customer support and what need to be done so that they can improve the service in
the process. These will help the company to get a clear picture regarding the
requirement of the customer service, which will help them to expand in the market
and to become popular in the process (Bailey 2017).
 The employees who are dealing with the customers need to respect the time that
the customer is providing in the process. These is the main reason the executive
should try to solve the problem in less possible time so that they can get
satisfaction with the service. These will be possible only if the executive listen to
the customer’s problem properly and try to find out the solution for the problem.
These will enable them to expand their business as the customers will be satisfy
with the service and will recommend the other customers.
 When the company is dealing with the customers online then it is to be understood
that the executive should showcase politeness in their reply so that they can draw
the attention of the consumers regarding the quality of the service. These will help
the company to grow in the market and to attract the customers in the process
(Grimmer 2017).
 The firm need to involve more executive so that they can handle more number of
customers and provide solution to them. These will automatically generate interest
in the minds of the customers and help them to achieve the success in the market.

7DIGITAL BUSINESS: WOOLWORTHS
The company need to understand that the consumer might face problems and it’s
their duty to solve the problem in an effective way possible so that they can attract
them.
These are the few things that need to be understand by the company so that they can
improve the online service that the company is providing to the customers. These are
essential factors that need to be understand by the company so that they can make their
service much more reliable and can build a sense of trust in the mindset of the consumers and
help them to gain popularity in the process (Irvine and Moerman 2017). Therefore, it will
assist them to achieve the target and to gain the popularity in it, which will be effective for
them to compete with Amazon in the marketplace.
Price of the Product
The company need to understand that they are charging more from the customers than
the competitive company. The company need to review the price as sometimes this create a
turn down for the consumers in the market. These is necessary for the firm to understand so
that they can expand in the marketplace and can gain the success in the process. These is a
major problem that the company us facing in the market so it is critical for the organization to
look after the matter so as to attract the customers from the marketplace and make them to
grow in the process (Ariyawardana and Collins 2013). On the other hand, Amazon is selling
their products in lower price which is the main reason the company in spite of operating
online is able to expand their market share in the Australian marketplace, which needs to be
understood by the firm so that they can achieve what they are willing to achieve from the
market.
The company need to strategize their planning as per the marketing mix by
emphasizing on the factors of marketing mix. These will help the firm to lure the customers

8DIGITAL BUSINESS: WOOLWORTHS
from the market and assist them to expand in the process. The company also need to provide
discounts to the customers along with the offers so that they can lure the customers from the
market and help them to generate revenue in the process (Carey, Parker and Scrinis 2017).
The company will possess an additional advantage so that they can compete with the
competitors in the market. Woolworths need to price their product in odd numbers which will
play with the minds of the customers and enable them to lure the consumers from the
marketplace. These psychological factor will help the organization to expand in the
marketplace and to attract the consumers in the process. These will be helpful for the growth
of the company in the market.
Amazon is pricing their products low and in a way which will lure the customers from
the market. Woolworths also need to price accordingly so that they can attract more
customers as they possess an advantage that the company is physically present in the
marketplace. These will ultimately assist the firm to gain the popularity as well as trust of the
consumers, which will assist them to flourish in the marketplace and to attract more
customers in the process (Carey et al. 2016). These advantage can be utilize by the company
so that they are able to attain the success in the process and assist them to accomplish the
target. Therefore, it will help the organization to grow in the marketplace and to attract the
customers in the process. The organization need to price as per the market trends as well as
the market demand so that they can lure the customers from the market and can generate
revenue in the process (von Briel and Recker 2017).
The company can do the pricing by conducting a survey which will provide them with
the data and information so that they can plan the strategy accordingly and help them to
accomplish the success in it. These are essential for the organization to grow in the market
and to attract the customers in the process. These will help the company to understand what

9DIGITAL BUSINESS: WOOLWORTHS
need to be done by them so that they can share a huge market share in the process and enable
them to achieve what they want from the market (Cramer 2019).
Therefore, the company need to understand that these are the two main things which
need to be look after by the company so that they can achieve what they are willing to gain
from the market. These is possible as the firm is able to provide customer with the service
and also will enable them to gain popularity in it due to the decrease in the price. Hence, it is
critical for the firm to expand in the marketplace and to attract the customers in the process
and let them become successful in it. The company need to focus as they are facing this
problems in the marketplace and Amazon is entering in this market so that they can
accomplish a huge market share. The organization is also pricing their product lower which
ultimately helped them to lure the consumers in the process and assist them to gain popularity
in the market and to penetrate it in an effective way possible. These is essential for the
Woolworths to understand so that they can gain advantage in the market and can stop the
entry of the Amazon in the Australian market and let them achieve success in it. Hence, these
need to be look after by the firm and assist them to achieve the success in the marketplace.
Conclusion
In the end, it can be inferred that the organization requires to look after the market
along with the competitors in it. These will assist them to expand in the process and let them
attract the customers. The competing company is selling the products in less money and also
providing better quality service to the consumers, so, it is crucial for the organization to look
after so that they can eliminate them. These is possible only if the company is providing
better quality online service to the consumers along with the low price, which will attract the
customers and will build the image of the firm in the marketplace.

10DIGITAL BUSINESS: WOOLWORTHS
Therefore, the strategies requires to be done accordingly by the firm so that they can
capture a huge market share and can gain popularity in it. These is necessary for the
organization and Woolworths possess advantage as they have physical existence in the
market. Hence, it can be considered as an important and crucial factor for the firm to expand
in the marketplace and to accomplish the success in it so that they can lure the customers
from the market.

11DIGITAL BUSINESS: WOOLWORTHS
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12DIGITAL BUSINESS: WOOLWORTHS
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