Understanding Markets

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Understanding the strength and weakness of Woolworth

The definition:
The aim of SWOT analysis is to identify alternatives and select some. Marketers need to determine whether factor is a strength or weakness and identify how each strength or weakness will affect the company. To explain, strength aspect means the competitive advantages of a company, while weakness refers to the constraints in a company.

Analyzing Woolworth’s strength and weakness:
Woolworth operates retail stores by selling different kinds of products. It had a good reputation among all the supermarkets in the past of years. However, because of the increasingly competition, Woolworth’s revenues and market growth are affected by this changeable marketing environment. As the definition shows, it is necessary for marketers to identify the strength and weakness of Woolworth which can help them to get a better understanding of the company and find a way to deal with the opportunity and threat. On one hand, Woolworth is very powerful in its sufficient supply chain which can help it to gain financial benefit. According to the report, by implementing different kinds of systems including StockSmart, AutoStockR, warehouse management and transportation management, Woolworth has achieved the goal of increasing its profit at a CAGR of 8% in recent years.(2012) Besides this, Woolworth also has very strong influence in its private label management. Actually, the economic growth in private label products has already overweighed that in the whole sales growth, which contributes to the high rates of repeat purchase among customers. By managing its private label including Select, Freeform, and Home Brand, Woolworth creates a better macro environment to make progress and strengthened its marketing position at the same time. On the other hand, Woolworth’s economic growth is also affected by its limited geographic presence. Compared to its competitors ALDI, who has distributed the...
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