Business Development Report: Woolworths Smart Shelves and AI Solution

This report provides a comprehensive analysis of Woolworths Supermarket's potential implementation of smart shelves enhanced by Artificial Intelligence (AI). It begins with an executive summary and table of contents, followed by an introduction that highlights the impact of sustainability and technological innovation. The report gives an overview of Woolworths, identifies technological problems faced by the company, and explores how AI can improve the situation by introducing smart shelves that collect data on customer behavior and optimize product assortment. A SWOT analysis evaluates Woolworths' strengths, weaknesses, opportunities, and threats. Core capabilities, the Business Canvas Model, Porter's Five Forces, and a business environment map are used to further analyze the business. The report concludes with a summary of findings and recommendations for Woolworths to adopt smart shelves and AI for competitive advantage. References are included to support the findings.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has been helpful in understanding as well as evaluating the importance of the Smart
Shelves with Lighting Solution for Woolworths Supermarket as to survive in the competitive
business environment. The different tools along with techniques that are needed to be
implemented in the company include the different kinds of approaches such as SWOT or core
competencies which are appropriate in managing the efficiency of the company in an efficient
manner. The problem was that Woolworths mainly followed the traditional approach due to
which it impacted their performance, however, the smart shelves with the different kinds of
technologies will be beneficial for improving their performance.

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Overview of Woolworths............................................................................................................3
Analysis of the Technological Problems Faced by Woolworths.................................................3
Analysis of the Different Artificial Intelligence Aspects to Improve the Scenario.........................4
SWOT Analysis...........................................................................................................................5
Core Capabilities.........................................................................................................................7
Business Canvas Model...............................................................................................................8
Porter’s Five Forces.....................................................................................................................9
Business Environment Map.......................................................................................................10
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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Introduction
The report helps in understanding the impact of the sustainability trend which has driven
the industry innovation in an efficient manner. As commented by Zhu, Wang and Xi (2018), the
smart connected products mainly involve the different or multiple players and kinds of
functionality along with services and it mainly encompasses multiple products. The close system
approach aims in having the different customers purchase entire connected, smart and effective
product and service system from the single manufacturer. With the help of the Artificial
Intelligence, there will be low number of errors present in comparison to the different kinds of
activities which are performed by the different human beings. The accuracy along with speed are
being managed efficiently and it is capable of coping up with the different dangerous tasks in a
successful manner. The aim as well as the purpose is to analyze importance of the respective
Artificial Intelligence Smart Innovation for creating smart shelves that can be rediscovering the
company Woolworths successfully.
Discussion
Overview of Woolworths
Woolworths Supermarket is one of the Australia’s largest supermarket chains which was
being incorporated in the year 1924. The organization is operating in more than 995 stores across
Australia wherein Woolworths relies on 115000 team members in the stores, distribution centers
along with support offices for providing the customers with superior service offices to provide
the different customers with superior kind of service, value along with convenience
(Woolworths.com.au, 2020). The number of employees employed with Woolworths include

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100000 till the year 2019 and the company has been successful in performing well in satisfying
the different customers and making themselves a strong brand.
Analysis of the Technological Problems Faced by Woolworths
In case of Woolworths, the company firstly and always used the traditional method of
dealing with their customers in the Australian and New Zealand economy. Previously
Woolworths followed the traditional check out counters for the customers which used to take
long span of time as the queue was large and it affected their popularity as there were different
other competitors who started to follow the different kinds of modern techniques to attract the
large number of customers (Wolf & Floyd, 2017). Woolworths never had the online portal for
online shopping, however later on; they tried to introduce the online shopping and the self-
check-out system at their showrooms for improving their effectiveness and gain technological
advancements aspects. However, in the present scenario, it can be noticed that Woolworths is
lagging behind in comparison to other competitor supermarkets such as Wal-Mart wherein they
are practicing to be up to date and manage preferences of customers appropriately. There is lack
of the smart connected products and services and usage of artificial intelligence which is making
them ineffective in nature.
Analysis of the Different Artificial Intelligence Aspects to Improve the Scenario
In case of Woolworths, as to make the business highly operative in nature and gain
competitive advantage, the implementation of the smart connected products and services are
highly required and necessary. There can be introduction of Smart Shelves which will be utilized
for collecting the different data on the in-store customer behavior for optimizing the assortment
of the in-store and for the online official portal as well.

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The main aspect and usage of the shelf will be to track the different number of items
which are picked up by the customers and analyzing the amount of time which is being spent by
the customers near one specific shelf. In addition, the main benefit which will be provided to the
customers will be that in future when the customers will be visiting Woolworths for purchasing
items, the smart shelves will be mainly complimented with the displays wherein it will be
supporting the customers in finding the desired products. The shelf will be connecting to the
consumer digital grocery lists and there is light that can be switched on automatically when the
customer is nearby the item they have been looking for (Sakrabani, Teoh & Amran, 2019). The
respective smart connected services and products of Woolworths will be for the working group
of individuals specially who are busy with their scheduled work and they are coming down to the
stores for finding their desired item. There will be no wastage of time as the lights will be on
once they are near the respective product (Roy, Balaji & Nguyen, 2020).
SWOT Analysis
The SWOT will be helpful for making the company understand the various strengths,
weaknesses, threats and opportunities which need to be taken care of in a proper and particular
manner. It will be appropriate for Woolworths to understand the different areas which needs
improvement for making the entire service effective within one to two years for becoming highly
technologically advanced.

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Figure 1: SWOT Analysis of Woolworths
(Source: Created by author)
Strengths
Saves Time and Effort- It is the first and foremost strength of the smart shelves which
will be introduced by Woolworths wherein it will be assisting the customers in shopping as per
their convenience within a short span of time (Rodriguez et al., 2019). In addition, there will be
assistance provided to the shopkeepers who will be able to understand the different re-filling of
the stocks which are needed to satisfy the clients and never say them no.
Availability of the data regarding re-filling of the shelves to the store owners or the
officials- It is the other major strength of Woolworths wherein the officials will be keeping the
track of the items which are getting finished and the ones which are needed to be re-filled. It can
WEAKNESSESItcanbedifficultfortheoneswhoarenottechnologicallyadvancedOPPORTUNITIESItwillbeanoppotunitytooptimizetherestockingoftheproductrequirementsTHREATSHighLevelofcompetitionSWOT

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be possible with the usage of the artificial intelligence approach that will be impacting
performance of the company appropriately (Papke-Shields & Boyer-Wright, 2017).
Weaknesses
Difficult for ones who are not technologically advanced- The respective smart shelves
can be creating trouble for the people especially the employees who are not technologically
advanced. Due to the same, their jobs can be at stake and it can be impacting their morale and
performance (Latif et al., 2020).
Technological Mishap- It is the other weakness wherein the artificial intelligence will be
used, however, there can be scenarios wherein the technology may not be working properly and
wrong information is provided regarding re-filling of products, which in true sense is still in
stock.
Opportunities
Optimizing the re-stocking- It is the major opportunity wherein the company will be the
first to install the same and the customers will be happy with such technological advancement so
soon and it will influencing the growth and effectiveness of the company in a positive manner as
well (Jiang et al., 2018).
Threats
High Level of competition- It is the major threat as there are different other companies
which are mainly focusing on becoming sustainable. In the respective run, Woolworths is
lagging behind and they need to introduce some techniques which will be helping them in
gaining competitive advantage in the market (Jamali et al., 2020).

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Core Capabilities
With the implementation of the smart connected products such as the Smart Shelves,
Woolworths will be able to gain competitive advantage. Through the usage of the smart shelves
which will be lighted up when the customers are looking for a particular product, it will be
capable of improving the labeling of the price and connect to the touch screens for offering the
information related to the product which is needed by the customers. In addition, through the
help of the Lighted Smart Shelves, employees and the different officials in the marketing
department will be able to keep proper watch on different stocks which are needed to b re-filled
and it can be efficient as well. With the utilization of the RFID Technology, it helps the officials
in taking care of the inventory which will be beneficial in improving the effectiveness of the
company and gain competitiveness in comparison to the present technological advancement that
is known as Self-Check-Out System. The customers will be able to save a lot of their busy time
in managing the effectiveness through the smart shelves which will be lighted up for making the
customers understand their requirements while entering the supermarket (Forbes.com, 2020).
The RFID Technology readers will be connected to the inventory tracking system that will be
enhancing their performance appropriately (Dighe et al., 2017).
Business Canvas Model
Key Partner
Financial
Institutions
Manufacturers
Different Investors
Engineering
Key Activities
Campaigns
Digital
Projects
Procurement
and Logistics
Value
Proposition
Giving red
color to the
shelves which
is found by
Customer
Relationships
Friendly
Services
Automation
Self-Service
Customer Segments
E-commerce
Shoppers
Working male and
female shoppers

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the customers
in the shelves
To offer the
different
customers
with one step
solution and
making them
feel effective
in nature
Re-fill the
stocks which
have been
empty
Key
Resources
Distribution
centers
Alliances and
Partnerships
Channels
Partners as
well as brands
Media
Application
Marketplaces
Cost Structure
Maintenance of the Smart Shelves
Marketing as well as Branding
Customer Service
Digital Marketing
Revenue Streams
Online and Retail Sales
Subscription fees

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Porter’s Five Forces
Threat of Substitute Products- It is LOW as the technological advancement and the
finances which will not be possible for the different supermarkets to afford. In such scenario, it is
the opportunity for Woolworths to implement such smart shelves lighting technology to attract
large number of customers in the market (Bryson, 2018).
Threat of New Entrants-It is LOW as the investment is huge and there are different IT
and engineering required which needs to be implemented for managing effectiveness. In such
scenario, the new entrants need to ascertain and implement the different kinds of characteristics
which will be helpful for improving the progress of the company and it will be taking lots of time
(Ali & Hingst, 2018).
Bargaining Power of Buyers- It is MODERATE as there are different buyers who prefer
to purchase the different products and services through online marketing. However, the
respective facility will be appropriate for the ones who prefer to go to the shopping marts and
shop as per their convenience (Bryson, 2018). In such scenarios, the smart shelves with lighting
option will be providing an alarm regarding their purchase.
Bargaining Power of Suppliers- It is MODERATE as there can be different other
competitors present in market wherein the suppliers will be huge, however, the ones who will be
delivering such technological aspects are less and it can be impacting performance of
Woolworths to a certain extent (Channon & Jalland, 2016).
Competitive Rivalry- It is LOW as there are very less companies which will be having
capability in investing high on the respective technological advancement. It will be impacting
their profitability to a large extent in the future (Brown et al., 2018).

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Business Environment Map
Why are you in
Business
Mission is to
deliver the best
to customers by
becoming
technologically
advanced
Passions is to
becoming the
world’s most
favorite stop for
shopping
groceries
Values is to offer
the customers
different
products under
single roof with
the smart shelves
approach
Initial Assets is
Competitive
Advantage
Moats- Smart
Shelves lighting
option
Core-For
becoming
technologically
expert
Competitive
Positioning-
They will be the
first store to
introduce such
AI
Customer
Acquisition
DMU:
Process to
Acquire
Customer:
Through social
media
promotional
activities
Windows of
Opportunity: It
will be popular
as they will be
using RFID
Technological
aspects
Possible
Triggers:
Frightening new
events
Overall
Economics
Est. R&D Exp.:
Around $10
crores
Est. G&A Exp.:
$5 crores
LTV/COCA
Ratio High
Enough: Yes
Design and
Build
ID Key
Assumptions: It
will be suitable
for the ones who
are
technologically
averse
Test Key
Assumptions: It
will be popular
among urban
people
MVBP:
Tracking
Metrics: NA