Document Text Contents
Page 2
Page | 2
Case Study: Woolworths Limited
Letter of Transmittal
July 03, 2012
Dr. Nazmul A Majumder
Course Instructor: Strategic Management (MBA/EMBA 600)
East West University, Dhaka
Subject: Submission of case study report on “Woolworths Limited: Retail leader in
Australia”
Dear Sir,
Here is the case study report on ―Woolworths Limited: Retail leader in Australia‖ as you
asked us to prepare for the partial fulfillment of the ―Strategic Management‖ course. With
great pleasure we are submitting this report as an integral part of the course.
Working for this report has definitely enriched our knowledge about the External and Internal
Environment analysis, SWOT analysis, Business Model, Core competencies & competitive
advantages of a business, generic business strategies etc. and writing case study report, which
ultimately strengthened our overall understanding of the Strategic Management.
As per your direction, we tried our level best to highlight our findings by applying strategic
management concepts and models. We tried to gather a collection of information to make our
report specific and coherent, and make the report as reflective as possible.
We are really thankful to you for giving us such a splendid opportunity to present you the
report, which is authentically based on team effort and we appreciate this kind of work by our
heart. We also appreciate to provide any information or clarification if necessary. Thank you
for your consideration.
Sincerely Yours,
Md. Mesbah Uddin
2010-3-95-078
Bahauddin Arafat
2010-3-91-031
Kamrul Hassan
2010-2-91-015
Page 9
Page | 9
Case Study: Woolworths Limited
3
Internal Environment Analysis
Internal environment analysis is very much important for identifying a firm‘s strengths and
weaknesses. Analyzing the strengths and relationships among the activities that constitute a
firm‘s value chain can be a means of uncovering potential sources of competitive advantage
for the firm (Dess et al., 2007). For example, the poor retail performance in 2011 forced
many retailers to look again at their business model and to assess opportunities in online
retailing- in an environment where consumer confidence is weak (Research and Markets,
2012). Thus from internal analysis a firm can repositioned in the market with new offerings
by flanking its vulnerabilities. Now we are going to analyze different components and parts
of Woolworths‘ internal environment.
3.1 Resources:
At the end of the 2008 calendar year, Woolworths operated 3,000 stores across the Australia
& New Zealand, and Employee approximately 180,000 people. This means that its tangible &
intangible resources are very strong. Woolworths has efficient management and human
resources, wide range of product and product innovation skills, well designed logistics
management, strong brand image and reputaion for quality and fresh food, partnership and
alliance management and strong relationship with vertically-integrated businesses
3.2 Capabilities:
Capabilities refer to an organization‘s skills in coordinating its resources putting them to
productive use (Alam and Majumdar, 2011). We have found that from 1924 Woolworth is
running business very successfully, it means that it capable to use right person in right
position and Woolworth knows how to use or set the resources.
Page 10
Page | 10
Case Study: Woolworths Limited
3.3 Core competency:
3.3.1 World-class supply chain: Woolworths‘ innovation and competitive advantage have
developed through its supply chain. Woolworths has significantly focused on efficiency and
cost cutting in managing unnecessary expenses.
3.3.2 Branding & Market: Woolworths has positioned its stores with ―The fresh food
people ―slogan, creating a differentiated image of quality and healthy product range at
responsible prices.
3.3.3 Innovation: Woolworths has implemented several project, including ―re-fresh‖, the
‗new idea program‖ petrol retailing.
3.3.4: Integration: Woolworths has vertically integrated some of its supplies by producing
its own inputs to increase its market power and to respond to the private level trend.
3.4 Value Chain Analysis:
There have different value-creating activities of Woolworths
Inbound logistics: it uses its own distribution centers as a result finnaly take advantage to
procure bulk quantity and reduce Cost price and take advantage from suppliers as a discount
Operation: Woolworths has a own farmer as a result they can take supply from root level as
fresh product with reduce cost.
Outbound logistics: in store vendor quality management system is used, ensuring product
quality & Freshness of product.
Marketing & sales: Woolworth spends more amounts for marketing. It makes successful
brand awareness.
Customer Service: Refund polices and also reduces the waiting times the use of trolley –
mounted scanner.
Page 19
http://www.researchandmarkets.com/reports/1607489/internet_retailing_in_australia
http://www.researchandmarkets.com/reports/1607489/internet_retailing_in_australia
http://www.woolworthslimited.com.au/
Page | 2
Case Study: Woolworths Limited
Letter of Transmittal
July 03, 2012
Dr. Nazmul A Majumder
Course Instructor: Strategic Management (MBA/EMBA 600)
East West University, Dhaka
Subject: Submission of case study report on “Woolworths Limited: Retail leader in
Australia”
Dear Sir,
Here is the case study report on ―Woolworths Limited: Retail leader in Australia‖ as you
asked us to prepare for the partial fulfillment of the ―Strategic Management‖ course. With
great pleasure we are submitting this report as an integral part of the course.
Working for this report has definitely enriched our knowledge about the External and Internal
Environment analysis, SWOT analysis, Business Model, Core competencies & competitive
advantages of a business, generic business strategies etc. and writing case study report, which
ultimately strengthened our overall understanding of the Strategic Management.
As per your direction, we tried our level best to highlight our findings by applying strategic
management concepts and models. We tried to gather a collection of information to make our
report specific and coherent, and make the report as reflective as possible.
We are really thankful to you for giving us such a splendid opportunity to present you the
report, which is authentically based on team effort and we appreciate this kind of work by our
heart. We also appreciate to provide any information or clarification if necessary. Thank you
for your consideration.
Sincerely Yours,
Md. Mesbah Uddin
2010-3-95-078
Bahauddin Arafat
2010-3-91-031
Kamrul Hassan
2010-2-91-015
Page 9
Page | 9
Case Study: Woolworths Limited
3
Internal Environment Analysis
Internal environment analysis is very much important for identifying a firm‘s strengths and
weaknesses. Analyzing the strengths and relationships among the activities that constitute a
firm‘s value chain can be a means of uncovering potential sources of competitive advantage
for the firm (Dess et al., 2007). For example, the poor retail performance in 2011 forced
many retailers to look again at their business model and to assess opportunities in online
retailing- in an environment where consumer confidence is weak (Research and Markets,
2012). Thus from internal analysis a firm can repositioned in the market with new offerings
by flanking its vulnerabilities. Now we are going to analyze different components and parts
of Woolworths‘ internal environment.
3.1 Resources:
At the end of the 2008 calendar year, Woolworths operated 3,000 stores across the Australia
& New Zealand, and Employee approximately 180,000 people. This means that its tangible &
intangible resources are very strong. Woolworths has efficient management and human
resources, wide range of product and product innovation skills, well designed logistics
management, strong brand image and reputaion for quality and fresh food, partnership and
alliance management and strong relationship with vertically-integrated businesses
3.2 Capabilities:
Capabilities refer to an organization‘s skills in coordinating its resources putting them to
productive use (Alam and Majumdar, 2011). We have found that from 1924 Woolworth is
running business very successfully, it means that it capable to use right person in right
position and Woolworth knows how to use or set the resources.
Page 10
Page | 10
Case Study: Woolworths Limited
3.3 Core competency:
3.3.1 World-class supply chain: Woolworths‘ innovation and competitive advantage have
developed through its supply chain. Woolworths has significantly focused on efficiency and
cost cutting in managing unnecessary expenses.
3.3.2 Branding & Market: Woolworths has positioned its stores with ―The fresh food
people ―slogan, creating a differentiated image of quality and healthy product range at
responsible prices.
3.3.3 Innovation: Woolworths has implemented several project, including ―re-fresh‖, the
‗new idea program‖ petrol retailing.
3.3.4: Integration: Woolworths has vertically integrated some of its supplies by producing
its own inputs to increase its market power and to respond to the private level trend.
3.4 Value Chain Analysis:
There have different value-creating activities of Woolworths
Inbound logistics: it uses its own distribution centers as a result finnaly take advantage to
procure bulk quantity and reduce Cost price and take advantage from suppliers as a discount
Operation: Woolworths has a own farmer as a result they can take supply from root level as
fresh product with reduce cost.
Outbound logistics: in store vendor quality management system is used, ensuring product
quality & Freshness of product.
Marketing & sales: Woolworth spends more amounts for marketing. It makes successful
brand awareness.
Customer Service: Refund polices and also reduces the waiting times the use of trolley –
mounted scanner.
Page 19
http://www.researchandmarkets.com/reports/1607489/internet_retailing_in_australia
http://www.researchandmarkets.com/reports/1607489/internet_retailing_in_australia
http://www.woolworthslimited.com.au/
