Strategic Analysis: A Case Study of Woolworths Ltd

7 Strategic Analysis: A Case Study of Woolworths Ltd Introduction Woolworths Limited is a retail company based in Australia and whose operations spread across the borders to the neighbouring New Zealand. The retailer chain deals in a multiple of goods and services including food, liquor, hotel services, among many others. Since its formation in 1924, Woolworths has been a success story in the retail industry, expanding very fast to establish subsidiaries and acquiring other retail brands on its growth path. Today, the chain has a huge workforce of over 191,000 and boasts of A$2.14 billion in profits as per the latest figures recorded by close of business in 2011 (Woolworths Supermarkets 2011). This paper analyses the company’s business strategy, investigating its macro environment as well as checking its competitive environment and analysing its competencies as far as resources are concerned.

Background information Woolworths Ltd is a public owned company with its shareholders base exceeding 420,000 people, 40,000 of whom are directly employed by the company (Woolworths Supermarkets 2011). The first Woolworths store was opened in downtown Sydney on December 5th, 1924 with a nominal capital of just £25,000. The company’s initial 11,707 shares were held by 29 people, five of whom were the founders. Woolworths pioneered the conduction of transactions using cash registers; every purchase was accompanied by a receipted printed via the cash register. The stores opened up the first international branch in New Zealand in 1929 which dealt in general merchandise. As part of its expansion program, the chains acquired Foodland supermarkets and Progressive Enterprises, bringing the total number of Woolworths’ stores in Australia today to 750.