Contents

• Executive summary
• Introduction
• External analysis – Porter 5 forces, Driving forces, Critical success factors
• Internal analysis – SWOT analysis, Core competencies, Value chain analysis, Issues of sustainability
• Woolworths’ competitive strategies – Corporate level strategies, Business & Functional level strategies, International dimension, Implementation of strategy, Recommendations
• Reference list

Description

The Australian supermarket industry is in its mature stage of its life cycle with high rivalry among the two major players in the market; Woolworths and Coles. Since establishment in 1924, Woolworths has grown to be the market leader with over 40% of the market. The following report strategically analyses the supermarket industry, Woolworths operating environment, its strategies implemented and provide recommendations for its future sustainability. Considering porter’s five forces analysis, the overall industry attractiveness can be considered low in terms of new entrants and established firms. Changes in technology, regulations and consumer demographics have been the main driving forces in the industry affecting competitiveness of firms. Low cost structure, technology, store locations and customer service have been critical for the success of firms in this industry. Been the market leader has been the major strength of Woolworths enabling it to achieve economies of scale. However a major threat facing the company is the growing presence of international competitors in the market. Low cost structure and brand equity can be regarded as core competencies of Woolworths. Furthermore Woolworths has focused heavily on supply chain management for the efficient management of its value chain and its low cost structure and brand equity has facilitated sustainability. Woolworths two major corporate strategies have been strategic acquisitions and unrelated diversification, and focuses on cost leadership and differentiation in terms of customers in store experience as its business level strategy. While Woolworths is considering expanding to New Zealand and India through acquisitions and joint ventures as part of its corporate strategy, organizational re-structuring, control systems, change management and a strong corporate culture have enabled Woolworths to implement strategies successfully.