Woolworth's Strategy Analysis
INTRODUCTION
The report aims to identified the Woolworth’s currency strategy and provide actionable suggestions for improving the strategy based on the fundamental objectives.
External environment affects Woolworths’ business will be analyzed to clear out the company’s position in Australian retail industry. Porter’s five force analyses are used. The report will also evaluate some internal environment factors, such as Woolworths’ resources and capabilities that impact on strategic decision process. The company’s SWOT analysis is the next part of the report. By using such concepts, the reasonable recommendations will be made in order to improve Woolworth’s strategy and take full advantages of their core competences in their industry.
1. Woolworths’ Overall Business
Woolworths started its business by opening the first store in Sydney in 1924, which was a bargain basement outlet. In 2012, the company has become the largest supermarket chain in Australia and New Zealand, with 28 million customers a week accounted for 31% market share. Woolworths operates a number of brands, which are Woolworths/Safeway supermarkets, Dick Smith Electronics, Big W, Dan Murphy’s, Dick Smith Powerhouse, BWS, and Tandy. Woolworths is one of Australia and New Zealand’s largest retailers in term of sales, revenues, number of supermarkets and stores, and geographic coverage. It has 840 supermarkets across Australia, 156 supermarkets in New Zealand, and also 22 retail stores in India which are the joint venture agreement with Indian supermarket chain Tata. Woolworths’ EBIT at the end of the 2012 financial year was 3,377 million in which the majority comes from Australian operations. Woolworths has listed as a strong financial performance company with a 3.3% average growth rate in EBIT from the period time of 2006-2012.
2. Woolworth’s Corporate Strategy
Woolworths’ vision is “to deliver to customers the right shopping experience each and every time”.
Woolworths’ mission
The report aims to identified the Woolworth’s currency strategy and provide actionable suggestions for improving the strategy based on the fundamental objectives.
External environment affects Woolworths’ business will be analyzed to clear out the company’s position in Australian retail industry. Porter’s five force analyses are used. The report will also evaluate some internal environment factors, such as Woolworths’ resources and capabilities that impact on strategic decision process. The company’s SWOT analysis is the next part of the report. By using such concepts, the reasonable recommendations will be made in order to improve Woolworth’s strategy and take full advantages of their core competences in their industry.
1. Woolworths’ Overall Business
Woolworths started its business by opening the first store in Sydney in 1924, which was a bargain basement outlet. In 2012, the company has become the largest supermarket chain in Australia and New Zealand, with 28 million customers a week accounted for 31% market share. Woolworths operates a number of brands, which are Woolworths/Safeway supermarkets, Dick Smith Electronics, Big W, Dan Murphy’s, Dick Smith Powerhouse, BWS, and Tandy. Woolworths is one of Australia and New Zealand’s largest retailers in term of sales, revenues, number of supermarkets and stores, and geographic coverage. It has 840 supermarkets across Australia, 156 supermarkets in New Zealand, and also 22 retail stores in India which are the joint venture agreement with Indian supermarket chain Tata. Woolworths’ EBIT at the end of the 2012 financial year was 3,377 million in which the majority comes from Australian operations. Woolworths has listed as a strong financial performance company with a 3.3% average growth rate in EBIT from the period time of 2006-2012.
2. Woolworth’s Corporate Strategy
Woolworths’ vision is “to deliver to customers the right shopping experience each and every time”.
Woolworths’ mission