Woolworths is the largest supermarket chain is Australia and New Zealand. Although there are tough competition in the retail market but the Woolworth has the major share of the retail market in Australia and New Zeeland. There are main four competitor Woolworths, Coles, Metcash, Aldi and others are small retailer in business. Australians are healthy food conscious.
Strength and Opportunities of Woolworths
Strengths
- Strong Market Position -Woolworths has more than 38% share of the overall industry which is the strength of the organization and can utilize it for entering the business sector with new systems, for example, bringing down evaluating through lottery or by gifting. The organization is 30% bigger than the closest contender. Its dedication for reasonable development is a quality that will position the organization as a worldwide segment pioneer. Woolworths knows that supportable improvement is critical to their triumphs. In particular, Woolworths trusts that "acting capably will bring about long haul business advantages, for example, bringing down dangers, decreasing costs, making choices and utilizing notoriety.
- Healthy Relation with Suppliers - The Company can bargain with suppliers for a quality product and minimize cost resulting more discount to customers and more profit to shareholders, as he is the market leader.
- Heavy Work Force - The organization has more than 197,000 representatives. The workforce can be utilized as a part of a successful way to grow deals.
- Strong Growth Potential - Organization has a reasonable income and opened 30 (net) new general stores and 10 (net) new Dan Murphy's amid the year 2015 and renovated 58 grocery stores and 5 Dan Murphy's permitting us to better address the issues of our clients(ausfoodnews, 2015). There are more potential to development in the organization.
- Australia’s largest domestic online retailer - However the organization has been begun its internet retailing and have 28000 items for offering on the web. They need to give more consideration on the online store. The customer obtaining design has been changed. The buyer is floated toward on the web. Woolworths is serving more than 29 millions client for every week. The Liquor business sector is developing in the country and it's MyDanMurphy's, another unwaveringness program effectively propelled in November 2014 with more than 900,000 individuals to date(Langley, 2015).
Opportunities
- Government Policy-
New Zealand products enter Australia obligation free under the Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) the length of the great has been made in either New Zealand or Australia. Australia, a major nourishment and refreshment maker in its own right, imports various New Zealand sustenance and drink items and is a net merchant of sustenance and staple items. Australia presently has significant worries about the populace's wellbeing, so crisp, common nourishments and dinner arrangements are high on the nation's shopping list. The developing private mark segment in Australian retail is another open door for New Zealand exporters.
- Emerging markets
About one quarter of Australians will be more seasoned than 65 by 2050, which will build the requirement for the nation to get more talented transients to support the working populace. This will put weight on the residential sustenance industry to accommodate an extensive variety of multi-social nourishment requests. Henceforth the business sector infiltration is important as a noteworthy retailer of the nation. It is evaluated that in 15 years, Australia should import 500,000 tons of fish every year in correlation to the 200,000 tons of eatable fish it at present imports (Grant, 2011).
Potential Impact
The company can find the suitable direction of growing market and company now to choose the customer on first preference with gaining less profit.
Company has to work intensely on web trading which can be proved a useless and non-salable inventory means of selling also but company should be pay attention to the consumers more closely.
References
ausfoodnews. (2015). Woolworths report on a year profits turned sour. Retrieved from ausfoodnews: http://ausfoodnews.com.au/2015/08/31/woolworths-reports-on-a-year-profits-turned-sour.html
Grant, N. (2011). Submission to the Development of a National Food Plan. Australia: Seafood Importers Association of Australasia Inc.
Langley, S. (2015). Woolworths partnership with eBay attracts big criticism. Retrieved from ausfoodnews: http://ausfoodnews.com.au/2015/03/04/woolworths-partnership-with-ebay-attracts-big-criticism.html