Woolworths Strategy

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Executive summary

Woolworths’ mission statement and main strategy is ‘to deliver to customers the right shopping experience each and every time.’ Woolworths’ vision is to provide quality products and services to its customers all the time through price strategies, fresh food strategies and human resource strategies. Woolworth’s main strategies are to increase efficiency and be cost effective. To achieve this Woolworths has integrated and implemented several strategies which include every-day low price strategy and; Project Refresh strategy. The every-day low prices strategy addresses this, and attempts to offer customers everyday lower prices through price reductions on all products. Project Refresh is a strategy designed to drive the cost of doing business down. Organisational structure, staff leadership and stakeholders all play an important role in implementing and integrating strategies. Woolworths’ has experienced great success and should continue along the same path through innovative, tactful and profitable strategies. Woolworths fulfilment of its strategies it due to it core competencies and its ability to reposition itself on the market and efforts to differentiate itself. Woolworths are now recording their first billion-dollar profit. Due to implemented strategies profit is up 24.3 per cent. “Earnings before interest and tax topped $1.7 billion - an increase of 32.3 per cent” (ABC2006)

Table of contents

Executive summary…………………………………………1

Table of contents……………………………………………2

Introduction…………………………………………………3

Strategic analysis…………………………………………....3,4,5,6

Strategic directions; strategic objectives…………………….6

Key strategies – current……………………………………. 7

Strategic implementation; general perspective………………7

Key strategic implementation issues…………………………9

Evaluation of strategy……………………………………….10

Conclusion…………………………………………………. 12

Reference…………………………………………………….13

Appendix…………………………………………………….14

Introduction.
Woolworths limited is the second largest retailer in Australia. Grocery represents 85.6 percent of Woolworth’s business. The reminder includes Big W and other variety stores (11.8 %) and specially stores (2.7%).Woolworths supermarkets are owned by Woolworths limited, and are a multi-category supermarket chain. Woolworths Ltd has annual sales of $38 billion. Major brands are as follows: Woolworth’s supermarket, Safeway, Metro, Big W, Dick Smiths Electronics and Dan Murphy’s (BUSINESS MONITER2007) (Refer to appendix1)

Strategic analysis. Internal and external.
Analysis of both internal and external elements helps to define “..strategic position and possibilities. [Strategic analysis] allows for strategic management that “manages today from tomorrow” (Viljoen and Dann, 2003)

SWOT Analysis. (refer to appendix2)
Strengths.
Market share: Woolworths has the advantage of having the largest percent of market share in the retail and fresh food grocery industry. Woolworths is a powerful retail brand and has a reputation of low prices, convenience, quality of service, wide range of products as well as fresh food (which Woolworths is trying to communicate to customers and make a main strength) Location: Woolworths has over 700 supermarkets and serves over 13 million customers Australia wide. There is a Woolworths in almost every major metropolitan shopping centre in Australia. The large number of supermarkets creates convenience and accessibility. Woolworths is operating effectively due to its core competencies, such as its unique retail format, fresh food strategy, 24 hour delivery strategy and the low prices strategy. These strategies combined ensure that food is always fresh and available, which is hard to replicate, giving Woolworths a competitive advantage.

Weaknesses: Woolworths offers many similar products under one roof which may make it harder for...
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