Essays on Woolworths Supermarkets Current Situation and Strategy Plan Case Study

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The paper "Woolworths Supermarkets Current Situation and Strategy Plan" is a good example of a management case study. The grocery and supermarket stores sector in Australia has been one of the stiffly competitive sectors in this economy (IBISworld 2014). The competition has been reduced to a two-horse race with the leading two supermarket chains Woolworths and Coles taking the largest share of the market equivalent to 70% (Bariacto & Nunzio 2014). IBISworld (2014) claims that the rapid growth and entry of many supermarkets including the German-owned ALDI is likely to intensify competition even further and eliminate duopoly.

ALDI solely sells private-labeled goods at low prices and is likely to result in a huge shift in this industry. This means that Woolworths which is the main focus in this report must implement new goals and strategies so as to remain competitive and relevant. Based on the information, this report analyzes the Woolworths Supermarkets position audit using SWOT Analysis and Porters competitive five-force Analysis. This can enable the supermarket to understand its internal strength and set new goals and new strategies to match external forces. A SWOT analysis will focus on strengths like a strong brand, a wide range of provisions, online presence, motivated workforce and large financial base.

Weaknesses cover high prices, lack of stores control. Opportunities that will be discussed comprise of managing of supplier chains, sponsors and marketing campaigns, and global expansion. Threats will focus on intense competition, employees’ wage bill growth and change in consumer behavior and loyalty. 2.0 Woolworths Current Situation Woolworths is today ranked as the leading grocery or supermarket store in Australia. The grocery was first established in 1924 and is owned by the Woolworths Limited (Woolworths Supermarket 2014).

The largest profits of Woolworths Limited of up to 87% come from this supermarket chain (IBISworld 2014). Over the years, it has grown and now runs 933 stores within Australia. In 2013 alone, the company had opened 19 more stores. Zappone (2009) contends that Woolworths together with Coles have created duopoly and controls 70% of the Australian grocery market. However, entry of the Aldi Supermarket chain recently severely confronted the duopoly. The company has a reward program which it uses to create long term relationships and loyalty with its customers.

Its high prices have made customers move to competitors such as West farmers and Aldi (McGregor 2012). This made the supermarket to post a slight increase in profits in 2013. Its sales in 2013 were AU$48,565 billion in 2013 representing growth of 4.9 percent, up from AU$46313 billion posted in 2011 (IBISworld 2014). Over the years, the super chain has aligned its operations to its corporate mission which state that “ the management is passionate committed retailers, who understand and lead their customers through excellence and deep knowledge of their products and services” (Woolworths Supermarket 2014). 3.0 New Goals and News strategies Grocery shelves have transformed considerably in the last five years with two giants supermarkets Woolworths and Coles scrambling to compete with new entrant ALDI which is also offering low prices (IBISworld 2014).

Ever-changing customer preferences and sentiment have also impacted the business environment across the sector. Bariacto & Nunzio (2014) argue that in the face of competition, Woolworth must rethink its goals and strategies to sustain change. Therefore, these goals and strategies are the possible solutions recommended for improving the state of Woolworth to be able to compete with Coles and ALDI to largest market share.

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