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TitleWoolworths Ltd - A Case Study Report
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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


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


Bahauddin Arafat


Kamrul Hassan


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Case Study: Woolworths Limited


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.

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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.

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