The purpose of this report is to provide a strategic analysis of Woolworths in its Australian retailing and grocery industry. There are some external factors can be affected to Woolworths strategy. To be analyzed how these factors impact to Woolworths strategies we would use Porter forces five models as a framework for analysis. They are threats of new entrants and substitute products, rivalry among competing established competitors, threat of substitutes and bargaining power of Woolworths’ suppliers and customers.
This report also provides the company situation analysis which will be analyzed the internal environments of Woolworths. In this analysis, we will use SWOT analysis which includes the strengths, weaknesses, opportunities, and threats Woolworths possesses. Woolworths’ scope of operations, size of business is also one of the internal analysis Woolworths has to analyze in order to grab opportunities and avoid threats. Besides, it is also given a brief analysis of Woolworths current strategy in order to response their competitor’s strategies. This report also provides some recommendations for Woolworths in order for it to stay competitive in its retailing industry, such as establishing loyalty programs for its customers and managing its efficiency in order to sustain its core competencies for its long-term success. Finally, analyzing the financial performance and stakeholder analysis by using graphs and quantitative data have been used to support the report. The major finding this analysis is proving the stable financial conditions of Woolworths as well as the interests of stakeholders. , It means that Woolworths have a good economy condition based on its financial position, so it caused to the benefits for its stakeholders.
The purpose of this report is to define how successful is Woolworths in the their current respective industry sector - Consumer Goods Retail in Australia; and to predict and analyze how Woolworths will perform in the future. Only secondary data are used in this report as there is very limited primary data in public databases. Various sources are used to provide analysis from different point of views. These include journals, news articles, and company annual report, collected from Internet databases, websites and Woolworths’ official Website. The report also investigates the fact that the analysis conducted has limitations. Some of the limitations include: •Forecasting figures not provided
•Nature and type of company unknown
•Data limitations for current economic conditions due to insufficient information or details provided i.e. monthly details not known, results based on past performances
3. Industry Analysis
In order to succeed in its retailing industry, Woolworths need to analyze and understand its external industry environment. Understanding enough about the external environment is very important for the success in competitive advantage of Woolworths. In this case, analyzing and understanding of Woolworths’ external environments, matched with the analysis of Woolworths’ internal environment will allow Woolworths to create and develop its strategic planning and actions to get the best result in market share battle with other rivals. Finally, external information will also allow Woolworths to adapt and change accordingly to its surrounding in order to stay competitive.
Porter’s Five Forces Analysis
Michael E. Porter’s five forces analysis can be used as a framework for the industry environment analysis of Woolworths. It comprises of rivalry among competing established companies, threat of new entrants, threat of substitute products or services, bargaining power of suppliers and bargaining power of customers (Hill et al, 2007).
3.1 Threat of new entrants
As the Australian retail industry with Woolworths and only a few other major players dominate the industry. Therefore, it is seems to be...