The paper "New Goals and Strategies for Woolworths Limited" is an outstanding example of a management case study. The purpose of this report was to perform a situational analysis of Woolworths limited in the Australian retail industry. The analysis results were expected to help in formulating new goals and strategies for Woolworths. The research utilized SWOT and Porters Five-Force tools to perform the analysis. According to the findings, Woolworths’ key strengths in supply chain management, brand salience and large store network can still be relied on to compete effectively. The industry is still attractive to old established players. Woolworths’ management will, however, develop and adopt goals such as market expansion, reduction of operational loss and increase in grocery sales through competitive prices.
This new goals and strategies will be critical in advancing Woolworths’ intentions to grow and expand market share. Introduction This report is based on a situational analysis of Woolworths Limited in the Australian retail industry. The report is prepared with a view of offering new goals and strategies to Woolworths Limited. The Australian retail industry is currently very competitive. Coles and ALDI offer great competition to Woolworths particularly in the grocery and food retailing (Langley, 2013).
Woolworths opens new battlefront to secure cheaper drinking milk. There is a need for Woolworths to develop new goals and strategies to counter the growing competition and deliver value to its shareholders. The new goals and strategies are meant to enable the company to deal effectively with competition and grow its revenue and market share in Australia. The report will use SWOT and Porters Five-Forces tools to perform a situational analysis on Woolworths. The SWOT analysis will identify the internal strengths and weaknesses that face Woolworths.
The SWOT analysis will as well highlight the external threats facing Woolworths and the opportunities the company can exploit successfully. Porters Five-Forces analysis will detail the Australian retail industry attractiveness for the case of Woolworths. The situational analyses will be used to recommend new goals and strategies and clearly defined tactical plans for Woolworths. The report will comprise the following sections arranged in subheadings: situational analysis, Recommendations, Justification, tactical plans, and concluding remarks. Woolworths current situation Woolworths limited is one of the two largest players in the Australian retail industry.
It has its main interests in the retail industry. Woolworths and Coles supermarkets control a combined 72.5% of the retail industry in Australia (Mitchell, 2014). Woolworths is the largest retailer in Australia in terms of market capitalization (Langley, 2013). Currently, Woolworths serves more than 28 million people in Australia. Woolworths supermarket, the most popular of Woolworths businesses commits to “ Always work hard to make our customers happy by providing them with nothing but the best of fresh food” . Woolworths’ current growth strategy as communicated on the mother company's website is built on four strategic priorities: Extend and defend leadership in food and liquor Act on our portfolio to maximize shareholder value Maintain our track record of building new growth businesses Put in place the enablers for a new era of growth SWOT Analysis SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats.
SWOT analysis is used as a tool to analyze the strengths, weaknesses, opportunities and threats facing a business. These factors can be categorized into the internal and external environments of the business. Strengths and weaknesses relate to the internal environment of the businesses that includes factors like expertise, location, patents and more.
Opportunities and threats relate to the external environment of the business that includes factors such as competition, economic performance, regulatory actions and more. For a business to develop an effective strategic plan, it has to scan its internal and external environment critically to identify the strengths and weaknesses within the organization and the opportunities and threats facing the business.