Woolworths Strategic Analysis Report (Coursework Sample)

Woolworths Strategic Analysis Report Author Affiliation Course Instructor Due date Woolworths Strategic Analysis Report Introduction Acquisition and mergers are some of the best strategic actions companies can take to expand their market coverage and competitiveness. As one of Australia's largest grocery retailers with a market capitalization of about $30 billion, Woolworths enjoys control of the market. However, as market dynamics evolve and competition intensifies, the management must undertake strategic actions that will help retain the market position. For Woolworths, an aggressive step of acquiring Aristocrat Leisure Limited will expand the revenue base and help the company diversify its revenue streams from grocery retail to the entertainment and gaming sector. The purpose of the report is to present a detailed analysis of the acquisition idea. The main issue of focus in the analysis is the strategic fit of the proposed acquisition since it is in different industry as the company. The report also addresses the implications of the proposed move on the future strategy and positioning of Woolworths Group in the Australian and global markets. The analysis involves an assessment of Woolworth's current business strategy, competition position, and strategic fit of the Aristocrat acquisition. Analysis of Woolworths’ Strategy Assessment of Woolworths’ Current Business Strategy Woolworth’s current business strategy focuses on the delivery of better experiences for its customers. The company prioritizes an honest and committed workplace culture, encouraging partnership among the key stakeholders. The company’s business strategy also focuses on the protection and enhancement of social license for the business to operate. According to Woolworths Group (2022a), the overall business strategy for the company focuses on offer, growth, and efficiency of operations. Woolworths' strategy involves enhancing the core product offering that will prioritize customer needs for high satisfaction levels. To achieve growth in the competitive environment, Woolworths' strategic focus is also on innovation that will ensure the company meets its customer needs (Woolworths Group, 2022a). Finally, there is an emphasis on improving the customer value through organizing and creating a lean retain model (Woolworths Group, 2022a). Overall, the business strategy focuses on delivering value to customers for high satisfaction levels. Competitive Environment Established in 1924, Woolworths is one of the oldest grocery retailers in Australia. It is one of the largest retailers in the country, operating more than 3,000 stores across Australia and New Zealand. On average, Woolworths serves about 27 million customers per week across all its stores and has a workforce of 210,000 employees (Woolworths Group Limited, 2022). The competitive environment where Woolworths operates is stiff and accommodates some of the largest global brands. In New Zealand, it faces direct competition from Countdown Limited. Other competitors in the global market include Target Corporation, Kroger, Walmart, Tesco, Carrefour, and Amazon. These companies compete on prices and quality. The company's competitive advantage is one of the centralizations of its procurement processes that grants control over the retail cycle of the business (Woolworths Group Limited, 2022). The strategy allows the company to guarantee quality, innovation, and authenticity across its Food, Beauty, Fashion, and Home segments. Woolworth’s ESG-Related Priorities and Plans Woolworths Group focuses on doing the right thing to deliver the best experiences to its customers as the sustainability priority. The ESG key priority areas focus on the people, planet, and product (Woolworths Group, 2022b). On the people, Woolworths Group focuses on building an inclusive workplace where all the employees can coordinate and perform the duties of delivering value to customers (Woolwort...