Woolworths - Competitive Advantage
MKTG 803
Operations & Supply
Management
Roy Marcellus – 40828360
SHOPPING LIST:
← Executive Summary
← Market Outlook
o Australian Economy o FMCG Outlook o Woolworths & their competitor
← Woolworths competitive advantage
o Product o Customer Intimacy and Retention o Online Presence o Bigger Network
← Appendix
← Reference List
EXECUTIVE SUMMARY
If we compare it with other countries across the globe, Australia has become one of the toughest and most competitive markets in terms of FMCG industry. Aggressive competitions, strict ruling of ACCC, more and more aggressive business model are being adopted, economy is falling apart, price increases experienced by customers in many areas and radical changes in our customer buying behaviour. These economic situation and customer trends will put a huge pressure on FMCG retailers to find a way how to protect their current share and more importantly how to increase their profit in this tough market. That’s why a successful Supply Chain Management and having the most efficient operation management is crucial to survive.
Woolworths is currently the biggest FMCG retailers with 2008’s revenue of $47b and 5.4% EBIT%.
Woolworths has reported 6.5% growth on profit for quarter 1 this year, surpassing many analysts’ prediction. Those flying figures are not achieved overnight, in fact Woolworths’ dedication on high standard operation management is probably one of the strongest contributor of those result.
Through out this report we will learn Woolworths’ 4 key operation excellences, namely Product, Customer Intimacy & Retention, Strong Online Presence, Bigger overall network. Among so many other operation excellences which Woolworths has, these 4 key points are probably the ones that contributes heavily towards their successes.
MARKET OUTLOOK
Australian Economy
Up until mid
Operations & Supply
Management
Roy Marcellus – 40828360
SHOPPING LIST:
← Executive Summary
← Market Outlook
o Australian Economy o FMCG Outlook o Woolworths & their competitor
← Woolworths competitive advantage
o Product o Customer Intimacy and Retention o Online Presence o Bigger Network
← Appendix
← Reference List
EXECUTIVE SUMMARY
If we compare it with other countries across the globe, Australia has become one of the toughest and most competitive markets in terms of FMCG industry. Aggressive competitions, strict ruling of ACCC, more and more aggressive business model are being adopted, economy is falling apart, price increases experienced by customers in many areas and radical changes in our customer buying behaviour. These economic situation and customer trends will put a huge pressure on FMCG retailers to find a way how to protect their current share and more importantly how to increase their profit in this tough market. That’s why a successful Supply Chain Management and having the most efficient operation management is crucial to survive.
Woolworths is currently the biggest FMCG retailers with 2008’s revenue of $47b and 5.4% EBIT%.
Woolworths has reported 6.5% growth on profit for quarter 1 this year, surpassing many analysts’ prediction. Those flying figures are not achieved overnight, in fact Woolworths’ dedication on high standard operation management is probably one of the strongest contributor of those result.
Through out this report we will learn Woolworths’ 4 key operation excellences, namely Product, Customer Intimacy & Retention, Strong Online Presence, Bigger overall network. Among so many other operation excellences which Woolworths has, these 4 key points are probably the ones that contributes heavily towards their successes.
MARKET OUTLOOK
Australian Economy
Up until mid