Introduction

Strategic Analysis

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Table of Contents

Part 1. 2

Part2. 5

References. 8

Part 1

1. Set up in the Imperial Arcade of Sydney. Woolworths started its journey being a variety store and gradually developed as the biggest supermarket chain.
2. Woolworths operates predominantly as a mass merchant and single brand retailer in Australia that deals in groceries, health and beauty products, sells magazines and household products and stationeries.
3. The important factors that influence the productivity of Woolworths is discussed below:

Economic: Due to stock loss, Woolworth has encountered a strong rival market threat. The economic stability is paralyzed by the tough competition in the market.

Socio-cultural: During the turbulent pandemic of 2020, the company has managed to maintain hygiene facilities (Keith, 2018). The campaign of Grower Fresh gets an overwhelming market response with a rating of.3.5 Health Star.

Technological: This tech-savvy company tries to build a solid consumer base by the introduction of smart stores, subscription models, proper use of robots and I-pads.

Political: The complicated political relations in the country lead to the decline in business productivity.

Global: The company has accommodated programs of Good Business Journey after the covid-19 blow.

Demographic: The market segmentation has its focus on the middle and working-class consumers who can access high-quality products at a convenient price in cities like Sydney, Brisbane and Melbourne.

Physical: The market location constituted by the intermediaries, suppliers, public, and the consumers, competitors add to the physical factors of the company.

4. The industry environment of the company is discussed below:

Supplier Power: Woolworths set up a competent supply chain by experimenting with designs and raw materials. The third-party manufacturers are also developed so that the business can individually depend upon them with little bargaining power

Buyer Power: In order to streamline the production process and sales, the company comes up with rapidly innovative products having offerings and discounts. A large pool of consumers is easily attracted to the products enriched in quality and of easy availability.

Potential Entrants: The company has already set up its standard of extraordinary profit thus lack of motivating the potential players in the market. The research and development process entails a lot of money in its journey towards the most dynamic industry.

Substitute products: Woolworths focuses on the service-oriented strategy rather than the product-oriented ones to survive the threats of alternative products. The core requirement of the consumers is identifying and the switching cost has been increased.

Rivalry among the competitors: Woolworths faces tough challenges from its competitors in the market that leads to the decline in profitability. The strategy has been devised to collaborate with the competitors to enhance its network.

Figure 1: Industry market analysis

Source: (Kasanagottu & Bhattacharya, 2018)

5. Competitive Environment Woolworths operates in a highly competitive The top competitors of Woolworths include Walmart, MUJI, UMS, NIKE. Each of them operates the chain of grocery stores, hypermarkets and stores of discount departments.

The companies like Walmart, Tesco, Nike capture a greater market share than Woolworths, making the opponents strong to pose a strong challenge in front of it. Rivalry among the firms is intensified by the fixed costs being high. The production in the industry needs the increased capacity by large increments and it messes up the balance between supply and demand.

 The relevant firms are capable of functioning by investing in assets and capital. The adopted strategies by them are diverse and facilitate the operation of the companies even at a low price (Kasanagottu & Bhattacharya, 2018). Each of their products are innovative that help them overcome the barriers of government restrictions and regulations.

They follow the cost-cutting and differentiation strategy to survive in the challenging market.

The companies always face incessant hearts of alternative products and loss of market shares anytime.

6. Opportunities: Through franchise models and strategic acquisitions, the company can enhance its profit. The brand enhancement by sponsorship, advertisements, and reintroducing stores in new locations can boost productivity.

Threats: The company has to face persistent political pressures against the retail market of duopolistic nature. The declined growth of online retail, the aggressive expansion of Aldi, and Cole’s strategy are some of the threats in front of Woolworths.

Part2

1. Tangible resources are the physical assets that a business entity possesses. Woolworths has its business in five enlarged segments-hotels, the wholesale division, customer electronics, general merchandise and supermarket division. The strong physical presence is noticeable in the whole of New Zealand and Australia with 3000plus stores, hotels in petrol stations having 37 billion revenue (Costanzo et al., 2020). The intangible resource involves credit cards, loyalty schemes, shopper clubs and subsidies at Caltex Woolworth. The reputation has been so strong due to its charming logo, ‘The Fresh Food People
2. The organization is capable of gaining customer loyalty through dynamic and innovative products in a highly competitive market. It uses sophisticated business tactics and recently installed web Method technologies to assess the supply-chain process (Chitaka, 2021). The installation of Workforce Optimisation technologies develops customer satisfaction and enhanced service. The logo is used as a competent marketing strategy for more than 20 years. 
3. Core competencies are inclusive of several activities that provide the company with its competitive edge. The company has its exceptional endeavour of nurturing and developing brands to get global recognition. It maintains a high standard in products at reduced cost and consumers are easily attracted to the convenient price of the customized products (Rea, 2021). The domestic brand is the grocery brand that sells the largest in Australia. Besides maintaining an outstanding brand reputation, it develops a dedicated and committed workforce, high uptake of communication and information technology, diversification and value for the financial aspects.
4. The suitable solutions that can meet up the requirements are that the company needs to focus on capturing market share. The former system of 20-metric has to be replaced by a scorecard of 8-metric. The investment in customer experiences has to be increased and online pricing has to be aligned with store pricing.
5. Recommendations: The system is customer-first and simplified to evaluate the in-store team performance. The company must follow the recommendations below to enhance productivity: 

• The capital expenditure has to be rebalanced between the store refurbishments and new stores.
• The proper utilization of 360” human resource software can help the organization survive during the tough competition.
• A solid partnership can be formed with Nagel and Kuehne that will attract more consumers from far across the globe.

References

Chitaka, T. Y. (2021). Environmentalism or greenwashing? Responses of South African value chain actors to plastic straw marine pollution. South African Journal of Science, 117(7-8), 1-5. Retrieved from: http://erepo.usiu.ac.ke/xmlui/bitstream/handle/11732/6030/HANNAH%20NJOKI%20NG%E2%80%99ANG%E2%80%99A%20MBA%202020.pdf?sequence=1&isAllowed=y

Costanzo, A., Settapramote, N., Utama-Ang, N., Wanich, U., Lewin, S., & Keast, R. (2021). Carbohydrate Taste Is Associated with Food Intake and Body Mass in Healthy Australian Adults. Nutrients, 13(11), 3844. Retrieved from: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7414736/

Kasanagottu, S., & Bhattacharya, S. (2018). A Review of Metro, Target, & Woolworths Global Business Strategy. International Journal of Mechanical Engineering and Technology, 9(7), 40-49. Retrieved from: https://www.researchgate.net/profile/Sudipto-Bhattacharya-2/publication/326928843_A_review_of_metro_target_woolworths_global_business_strategy/lin

Keith, S. (2018). Coles, Woolworths, and the local. Locale: The Australasian-Pacific Journal of Regional Food Studies, 32(3), 47-81. Retrieved form: https://www.researchgate.net/profile/Sarah-Keith-2/publication/284723681_Keith_S_2012_’Coles_Woolworths_and_the_local’_Locale_The_Australa

Rea, A. (2021). The Vulgarity of Spiritualism: Modernity’s Privileged Discourses in Rachel Ferguson’s The Brontës Went to Woolworths. Papers on Language and Literature, 57(2), 203-244. Retrieved from: https://lau.repository.guildhe.ac.uk/id/eprint/17644/1/P%20Chambers%20Shoplifting%20in%20Woolwo