Answer to Question #237834 in Marketing for Shen

Question

Conduct a SWOT analyses on behalf of Woolworths. Based on your findings and reasonable assumptions, include up to three (3) recommendations for weaknesses and/ or threats.

Answer 1

Conduct a SWOT analysis on behalf of Woolworths

Strength

• Managing perspective

The ease at which they have been able to manage perceptions and balance segments across income strata. This has been made possible by pricing as well as promotion policy which is not completely low end but also not entirely premium.

• Good customer tracking

They also keep track of customer shopping bills and ensure that their shelves are always stocked with fast-moving products.

• Market leadership

In the Australian retail market, Woolworths holds at least 80% of the market share, this had reduced the threat of competition drastically.

Weakness

• Partial behaviour to certain markets

the company is known to be partial to the higher income segment giving them more attention, better products, and services.

• Confused positioning

Woolworths targets multiple income segments using the same products. The result is that it sends confusing signals to the customer who is not sure whether the supermarket really offers value prices.

• Price war

Woolworths is always at a price war with it biggest competitor Coles. This leads to lower prices hence losses.

Opportunity

• Every retail has the same to offer in terms of value segment. the opportunity is in being able to create a difference in the in-store services. These are personalized service, artificial intelligence and self-checkouts.

Threats

• Focus on health

Organic and chemical-free products are in great demand today and supermarkets would need to change their product portfolio in order to accommodate the changing trends which will be a threat for the future.

• Competition

The greatest competitor is Coles and how that online retail has forayed into food retail they offer serious threats as well.

Recommendations

1. Woolworths should ensure all market segments are treated the same in terms of the quality of products.
2. Woolworths should stock more healthy foods to attract a lot of customers.
3. Woolworths should ensure that the price that they set are reasonable to avoid making losses.