SEB711 Managing Innovation: Woolworths' Omni-Channel Strategy

This report assesses the potential of an omni-channel business strategy for Woolworths, Australia's largest supermarket chain, to enhance its revenue and competitive positioning. The suggested strategy involves developing e-commerce operations to broaden customer reach and compete with online retailers like Amazon. The report highlights the value proposition of implementing multiple distribution channels to improve customer convenience and sustain competitive advantage through superior service and leveraging customer data. It also addresses the skills and team required for successful implementation, focusing on online channel management and customer communication. The report concludes that innovation, particularly in delivering products and services efficiently, is vital for Woolworths' continued success in the retail industry. Desklib provides access to similar solved assignments and past papers for students.

Running head: MANAGING AND DEVELOPING INNOVATIONS
MANAGING AND DEVELOPING INNOVATIONS
Name of the Student
Name of the University
Author Note

1MANAGING AND DEVELOPING INNOVATIONS
Introduction
Woolworths is the largest supermarket type of chain in Australia which operates more
than 900 stores all over the country. The organization mainly trusts on 115,000 members of
the team who are a part of the stores, distribution based centres and the support based offices
as well. The company mainly provides superior levels of services, convenience and value to
the consumers. Woolworths has a pride in itself for having association with the growers and
farmers in Australia. This has been helpful for the development of an image of Woolworths
as “Australia’s Fresh Food People”. The analysis will be based on the suggestion which is
provided based on implementation of innovation in order to improve the revenue levels of the
company (Woolworthsgroup.com.au 2018).
Section 1 – Concept Description
1. Title of concept
The concept which can be recommended for implementation to Woolworths is the
Omni-channel business strategy. The strategy will be based on the e-commerce operations
which can be developed by Woolworths in order to develop the levels of revenues. The
organization will also be able to reach more number of customers with the help of e-
commerce operations (Dodgson 2018).
2. The Idea in a nut shell
The idea is mainly related to providing the products and services of the organization
with a help of an e-commerce application. The app will be able to provide information based
on the products to customers of the organization. The innovation will help Woolworths to
compete with major online-retail based organization like Amazon (Beck and Rygl 2015).
3. Value proposition offered by the concept
The major value proposition which is provided by the organization is based on the
ways by which Woolworths is able to increase the levels of revenues. The Omni-channel
business strategy is based on implementation of distribution channels within the business
operations. The customers will be able to conduct the business operations at the comfort of
their homes. This will help in proper establishment of the brick and mortar based stores and
the e-commerce stores as well (Criscuolo et al. 2018).
4. Literature review, prior arts, existing patents and background of the concept
The concept of Omni-channel business strategy is based on the proper implementation
of technologies within the business operations. The Omni-channel strategy is related to the
business approach which is based on different channels and the company is able to reach the
customers in different ways. The experience which is thereby provided by the company to
customers is also cohesive in nature. The Omni-channel strategy has been implemented
different major organizations and they have been successful in their operations. The examples
of such organizations mainly include, Bank of America, Virgin Atlantic, Chipotle and
Starbucks. The organizations have gained high levels customer base in an effective manner
with the proper implementation of the Omni-channel business based strategy (Dodgson
2018).
Section 2 – Concept analysis
1. Competitive advantage
Woolworths will be able to gain a major competitive advantage in the market with the
help of proper reach. The company will reach the customers with the help of physical brick-
and-mortar stores and the online business based channels as well. The competitive advantage

2MANAGING AND DEVELOPING INNOVATIONS
will be based on the loyal customer base which can be developed by the organization within
the retail industry of Australia (Drucker 2014).
2. Ways of sustaining competitive advantage
The competitive advantage can be sustained by Woolworths with the help of proper
services and products which are provided to the customers. The online channel will play a
key role for the development effective customer relationships within the industry. The needs
and demands of consumers can also be analysed by Woolworths with the help of online
channel and the website as well. The development of competitive advantage in the industry is
thereby highly important for Woolworths in order to operate in the highly competitive retail
industry. The online competitors of the organization can also be faced by the company with
the help of Omni-channel strategy (Mousavi, Bossink and Van Vliet 2017).
3. Assumptions based on the idea formulation
The major assumptions which have been made by the organization based on the
application of Omni-channel business strategy are based on the improvement of revenue
based levels. Woolworths has not been able to develop proper online channels which is
considered to be a major drawback. The implementation of multiple channels will be able to
play a main part in the methods by which Woolworths can maintain its position in the retail
industry (Palmer, Dunford and Akin 2016).
4. Risk or weakness of the current plan and ways of addressing them
The major weakness or risk which is related to the current operations of Woolworths
is related to the ways by which the organization is able to reach the consumers. The company
is also not able to compete with the online retail based organizations within the industry.
Section 3 – Required skills and team
1. Skills needed
The skills which are required for the implementation of Omni-channel business
strategy mainly include, training based on proper operations of the online offering of
products. The training will be related to the ways by which different online channels of the
organization can be developed in order to operate the entire system (Verhoef, Kannan and
Inman 2015).
2. Team required for meeting the skills
Woolworths needs to develop a team which will be responsible for developing the
online channel of the company and distribution strategy as well. The team will also consist of
employees who are able to communicate with the customers and understand their needs and
demands as well. The demands can be understood effectively by team and required products
can be provided with the help of its website. The team will consist of executives who have
expertise in different areas of operations. The capabilities which have been gained by the
team are thereby based on different areas of operations of Woolworths (Palmer, Dunford and
Akin 2016).
Conclusion
The analysis can be settled by stating that innovation is able to play a key role in the
ways by which Woolworths is able to function in the retail industry. The innovation activity
which can be implemented by the company is related to the delivery of products and services
to the consumers with lesser amounts of time. Development of a proper team is also
important for the implementation of innovation capabilities in an effective manner.

3MANAGING AND DEVELOPING INNOVATIONS
References
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Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
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Woolworthsgroup.com.au 2018. Woolworths Supermarkets - Woolworths Group. [online]
Woolworthsgroup.com.au. Available at: https://www.woolworthsgroup.com.au/page/about-
us/our-brands/supermarkets/Woolworths [Accessed 29 Nov. 2018].