Analysis Woolworth Limited Australia

Analysis of Woolworths Limited Australia1

Leading Strategies and Opportunities in the competitive, technological and regulatory environment

Danfeng Chen, Stevan Nikolin, Tai Tran2 2009

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public version contact author www.taitran.com

Introduction

Woolworths is a vast and diverse company which has its origins in Australia. Its range of products includes supermarkets, electronics, retail, liquor, petrol, general merchandise among many others. Despite their already large presence in the Australian market, Woolworths believes that there is still potential for significant growth, whether this growth occurs within the existing industries in which it operates, or alternatively, in new ventures. This essay will analyse the company’s core competencies, its marketing strategies, operations and logistics management, and its competitive standing within the current socioeconomic environment. The theory used to conduct this study includes theory from Managing Value and Creation 1, the Five Forces model (see Appendix A), as well as references to external sources of information to construct an accurate overview of Woolworths' activities. Following this analysis, an account of Woolworths’ strategic opportunities and risks will be presented.

Analysis of Woolworths

Company overview

Woolworths Limited Australia is a large corporate entity with many businesses across multiple industries. It owns around 3030 stores in Australia and New Zealand (including 929 supermarkets, 151 Big W's, 416 consumer electronic outlets, 522 petrol stops, as well as 271 premium hotels) and employs 190,000 people. As a result of sheer size, diversity and good business strategy, its been able to weather the current economic crisis and has reported a 10% increase in profit after tax (Woolworths Limited 2009).

Core Competencies, Resources and Capabilities

Woolworths has built up its core competencies across a diverse range. Its brand management has resulted in the Woolworths brand being...