Business

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Woolies Strategies Woolworths is a supermarket with 84% of group sales being in food and liquor. This outline focuses on the supermarket and food retailing operations of this company. Woolworths quickly established itself as one of the major players in the supermarket industry and has been rated as Australia’s premier retailer . Woolworths has annual sales of almost $45 billion and continues to expand and lift profitability despite significant competition and daily challenges. Woolworths’ core business focus is on customers, and seek to re-invigorate their products through investment in price, range, merchandise and quality. more on what woollies thinks its like blurb stuff Hollander’s thesis argues that over time retailers move from…show more content…
They can achieve this through improved access and effective layout allowing shoppers to quickly retrieve their “top up” items. Woolworths faces inflationary pressures as it is heavily reliant on oil prices for the distribution of their goods. Supply prices also significantly affect the profit margins which it is able to maintain. Woolworths faces strong competition from its major competitor Coles; with its new ownership also possessing significant buying power and ability to utilise systemic power it will continue to remain a strong competitor. Coles’ markets itself as a “low-price” provider to gain competitive advantage, whilst also maintaining a perception of fresh high quality products. A growing threat to Woolworths market share is the emergence of international competitors, specialty stores and other supermarket operators such as ALDI, Bakers Delight and Foodworks. As a result of the comparable offerings available within these operators, shoppers are now able to avail themselves of a wide range of retailers to provide their grocery requirements which threatens the level of customers that Woolworths can hold. Considering porter’s five forces analysis, the overall industry attractiveness can be considered low in terms of new entrants and established firms.

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