Strategic Analysis And SWOT Analysis Of Woolworths

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Register to read the introduction… [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
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Woolworths experiences price wars with Coles’ introduction of its ‘price rewind’ strategy, which was in response to Woolworths ‘everyday low price’ strategy.
Coles, as Woolworths has superior access to channels of distribution, which is seen as a threat. Woolworths must dominate Coles in this area in order to rise above. Because Woolworths is the largest retailer in Australia they are the biggest target of competition, locally and globally.

Woolworths' prospect of expanding to New Zealand may present many opportunities such as increased market share and positive reaction from New Zealand retail customers. However this may also present weaknesses as the New Zealand market may not welcome the large supermarket as intended. FoodLand enjoys a large market share already in New
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Pestel Analysis.
This analysis is appropriate in providing understanding of Woolworths' internal aspects.
Social: Woolworths encourages its employees to socialise and work in a happy environment. Woolworths has implemented and integrated a broad range of community and environmental strategies to give back to the customer and local communities. Woolworths supports many charities.
Technological: Woolworth’s 24 hour delivery strategy needs to be backed up by a fully automated ordering system, which Woolworths have created. Woolworth’s employees use hand held ordering devise that are used everyday in store and allows ordering to be done instantly. This reduces stockholding and cost and “…further improves the quality of management decision making” (Treadgold,. 1996)
Environmental: Woolworths provides a wide range of initiatives that help to achieve a better and more sustainable environment. In store initiatives include environmentally safe bags.
Legal: All staff has the opportunity to be train properly. All staff is required to have correct food handling and safety knowledge.

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