Strategic Options and Recommendations Report: Woolworths Case Study

This report provides a strategic analysis of Woolworths, an Australian supermarket chain, focusing on its strategic options and recommendations. The analysis begins with an assessment of the company's current situation, considering its strengths, weaknesses, opportunities, and threats (SWOT). The report explores various strategic options, including implementing automated checkout technology, expanding supermarket space, utilizing digital marketing, and enhancing supermarket interiors. It evaluates the firm's current business-level strategy and suggests the need for change, particularly in light of evolving customer preferences and the increasing importance of an online presence. The report also examines Woolworths' resources, competencies, and capabilities, emphasizing the need for further development in areas such as market research and customer feedback to formulate effective strategies. The analysis concludes with strategic recommendations, evaluating each option based on risk, benefits, and a decision rank, ultimately guiding Woolworths toward strategies that enhance customer experience, expand market share, and achieve global recognition. The report highlights the importance of technological advancements, international expansion, and customer-centric approaches for maintaining a competitive edge in the retail sector.

Strategic Options and Strategic Recommendations Template
In the strategic options and strategic recommendations sections of your assignment, you will be using the information you have gathered in the
previous template on SWOT and competitive advantage to develop strategic options and make strategic recommendations. Note that the
templates overlap a bit here, because of you need to understand what strategy is being followed now, and what resources, capabilities and
competencies they have now, and what the need to have in the future to have a competitive advantage.
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Strategic Options and Strategic Recommendations Template
Strategic options
What actions could
the firm take to meet
address the
opportunities and
threats that the firm is
facing?
According to the opportunities and threats identified from the SWOT analysis, the company is facing high
competition in retail sector of Australia and also does not possess proper international exposure. Along with this, the
preferences of the customers are changing with time and due to this, it is necessary for the organization to make changes
within its product ranges and supermarket services. Lack of these factors can affect the growth and popularity of the
supermarket chain. The discussed problems are major and need proper attention for maintaining the market present and top
position in the retail sector (Wang, 2015). In context to this, there are some actions which Woolworths need to take for
taking advantages of its opportunities and handling the threats effectively. These actions are: implementation of automated
check-out technology, expanding space in supermarket, use of digital marketing and formation of attractive interior of
supermarket. These actions will make Woolworths to fight with the huge competition, to offer something effective and
innovative to the customers and many more.
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Strategic Options and Strategic Recommendations Template
Should they change
their business level
strategy, or should
they keep their current
strategy.
According to the present situation, Woolworths is following traditional approaches for selling its products and services to
the customers. It is also not using digital platform effectively for promoting its products and services among the customers.
In context to this, there is requirement of changing the business level strategy. The firm needs to analyse the current market
situation and customer demands for meeting them and gaining competitive advantages. Retail sector is enhancing its
business opportunities by going online and offering mobile services to the individuals. With respect to this, Woolworths
does not posses strong online presence and due to this, customers are switching. For maintaining the market position and
surviving in the retail sector, it is important for the company to bring changes within its strategies. The organization can
understand the loopholes present in current strategy and can improve them by developing and implementing better and
effective business strategy (Pappas, 2016).
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Strategic Options and Strategic Recommendations Template
Does the firm
currently have the
resources
competencies and
capabilities to address
the opportunities and
threats?
Woolworths is one of most popular supermarket chain in Australia. The company is gaining high profit due to offering high
quality products to the high income earners. The organization has also gained increment in its sales and overall profit
margin in 2018 which represents that it has enough financial resources for addressing the opportunities and threats
effectively. Along with this, the company possesses large number of workers for handling different processes. By offering
training and development sessions, Woolworths can enhance the skills and knowledge of its human resources for handling
the new strategies properly. The firm can also hire new and talented candidates having technological knowledge and
effective communication skills for offering better services to the customers. Apart from this, Woolworths is using Enterprise
Resource Planning System for managing and maintaining its work and products effectively. This shows that it has technical
resources as well (Simões & Sebastiani, 2016).
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Strategic Options and Strategic Recommendations Template
Do they need to gain
or develop them?
Woolworths need to develop new strategies for improving and enhancing the quality of services for the customers. Proper
market research and customer feedbacks will inform firm about the current trends, customer’s purchasing habits, changing
requirements, competitor’s strategies, etc. All these information will help company in formulating effective and appropriate
strategies for gaining the competitive advantages and addressing the threats and opportunities (Flax, Bick & Abratt, 2016).
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Strategic Options and Strategic Recommendations Template
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Strategic Options and Strategic Recommendations Template
What areas actions in
the value chain would
they need to take if
they were to follow a
new business level
strategy?
It is clear that Woolworths need to follow a new business level strategy and due to this, there are some actions which it will
have to take for accomplishing the desired results. The company will have to make changes within the infrastructure of its
supermarkets for making them attractive, easy to access and impressive for the customers. Along with this, the firm will
have to implement new technologies within the stores for making them technologically advance and enhancing the
experience of shopping of the consumers. Apart from this, Woolworths will have to conduct training sessions for its staff
members for improving their communication skills, technological skills and personality. All these aspects will help
supermarket in satisfying the needs of the consumers and developing trust among them (Methner, Hamann & Nilsson,
2015).
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Strategic Options and Strategic Recommendations Template
?
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Strategic Options and Strategic Recommendations Template
Strategic recommendations
In this section you decide and recommend a strategy to follow. Note that in the previous section you have developed options
You need to evaluate each option, and then recommend one or more.
Strategy Option Risk Benefits Decision rank. And why
Technologicall
y advanced
supermarket
 Expensive
 Lack of knowledge among
the staff can affect their work
and performance
 Resistance of staff towards
the change
 Implementation latest
technologies within
its supermarket for
making them
technologically
advanced and easy to
access (Morden,
2016).
 Techniques like
automated check-out
technique, automatic
replenishment,
artificial intelligence,
It needs to be on first priority because this strategy
will provide a new look and better services to the
customers which are beyond their expectations
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Strategic Options and Strategic Recommendations Template
etc.
 Enhancement in the
experience of the
customers and help
Woolworths in
gaining competitive
advantages.
 Development of its
mobile application for
providing opportunity
to its consumers to
purchase and pay
online
Expanding the
space in
supermarket
 Can be implemented in new
supermarkets only
 Expensive
 Renovation will be required
in old supermarkets
 Easy purchasing, no
irritation or confusion
and no clumsiness
 Better management of
the products
 Easy to access and
move here and there
(Carey, Parker &
Last rank because it is not easy to implement this
strategy in current supermarkets. However, the firm
can use it in future.
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Strategic Options and Strategic Recommendations Template
Scrinis, 2017).
 Waiting area for the
customers for
avoiding them to
leave
Availability of
products in both
premium and
affordable price
 Company can lose its brand
image of having premium
products
 Increase in number of
customers
 Increase in sales and
profit margin
Second rank because this strategy will help firm in
enhancing its customers and sales.
International
expansion
 Expensive
 Improper planning can result
to failure and huge loss
 Global recognition
 Higher profit and
market share
 Increment in brand
value and image
(Methner, Hamann &
Nilsson, 2015).
Third rank because it will provide global presence to
the company resulting to enhance the sales and profit.
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