Porters 5 Forces Woolworths

Topics: Woolworths, Woolworths Limited, Countdown Pages: 3 (615 words) Published: April 5, 2011
Assignment 1 – Individual Case Study (Woolworths)


Woolworths is one of the top 25 food retailers in the world holding approximately 31% of the food retail sector in Australia, with approximately 3100 suppliers providing some 3162 stores across Australia and New Zealand and employing over 191,000 people. Woolworths is constantly changing to meet consumer demands. Since opening it’s first store in 1924, with a nominal capital of 25,000 shares only 15,000 of those shares were available to the public. Of that 15,000 only 11,707 shares were purchased. Who would have thought that Woolworths would become a household name? Branching out to liquor, petrol, general merchandise, electronics, and most recently hardware. They service over 24 million customers a week in Australia and New Zealand combined. They are consistently investing in their core business and also coming up with new customer initiatives to reward their customers for shopping with them. Partnering with other large companies such as Optus and Qantas has provided Woolworths with a major boost.

Competitive Forces for Woolworths

|Force |Power |Justification | |Suppliers |Low |As there are so many companies producing similar products, I feel that Woolworths holds | | | |the power in this case. Launching its’ own private labels eg. “Select” reducing the | | | |available facings for competitors’ lines and their suppliers. | |Customers |High |As there are several competitors offering the same products and services, Woolworths have | | | |invested millions into marketing and refurbishing their stores to enhance the customers | | | |shopping experience, which will inevitably see the...
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