The Newspaper Article Used: ‘Competition, Floods Hurt Woolworths’
Submitted by: Submitted by moncia
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Pages: 2
Category: Business and Industry
Date Submitted: 04/03/2011 07:07 PM
The Newspaper article used:
‘Competition, floods hurt Woolworths’
From: AFR, January 25, 2011
Author: Julie-anne Sprague
An article in AFR on 25 January 2011 shows how competitions of micro environment and economic& natural of macro environment affect the profit of Woolworths.
According to the article that the supermarket group is difficult arrive their expectation profit that could classify into several reasons: battles falling prices, soft consumer spending and heightened competition from rivals. Moreover, Woolworths would lower price of products than its competitors. On the other hand, competition could benefit to consumers, because people prefer purchase the same quality as well as cheaper goods. Then, Woolworths might attract more clients for willing purchase into their stores for balance their profit. Furthermore, as economics development that more chain stores have been built and competitive with Woolworths, such as Coles, Reject shop, Cheap as chips, K-mart, Big W, etc.
Therefore, the Woolworths have been hurt by micro-environment competitions in recent period. The microenvironment refers to the forces that are close to the company and affect its ability to serve its customers. It includes the company itself, its suppliers, marketing intermediaries, customer markets, competitors, and publics.
As other reasons for hurting Woolworth that two factors are economic and natural of macro-environment. According the article ‘……the impact of the flooding, while creating short-term shortages for some products……’ (Julie-anne, S 2011) that the prices might higher for the shortage goods, such as fresh fruit and vegetable. In addition, Mr Luscombe said inflation is beginning come back (Julie-anne, S 2011). When inflation happens, money is not worth than before. The prices of goods will goes up; and people will spend more money to buy goods than earlier. In this situation, the consumption would decrease that effect personal investment. So clients probably will...
