Business Strategy: Woolworths

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Business Strategy – Before we discuss what is the business strategy of Woolworths, let us first talk about what exactly is business strategy? A business strategy is a type of plan that is used to achieve some plan or to get through a situation. A strategy is a single use plan, in order to face two different situations, two different strategies will be made. Hence, for every situation or problem a strategy can be planned. This situation can be anything, it can be either a competition or achieve a particular target of sales or to attract a huge number of customers or to expand business, etc. Strategy is planned depending on the circumstance faced by a business concern. The strategies that have huge impact on the business are planned by the Top management. Management students have to deal will these kind of topics. For their betterment they are assigned topics to analyze a business firm’s strategy. If you too have such assignment to complete and need help with it, you can contact Assignment Help USA. Now that we are clear about the term business strategy, let’s talk about business strategy of Woolworths.

Woolworths group of industries were founded on December 5, 1924, in New South Wales, Australia. It is a supermarket that provides all grocery products. Woolworths is the part of duopoly grocery market of Australia, as Coles and Woolworths these two supermarkets constitute almost 80% of the Australian market. The founders of the company named it as “Walworth’s Bazaar Ltd.” But then the name was changed to “Woolworths limited”. The company has embarked its wide existence in the Australian market. The company was ethically running its business and launched its slogan in 1987. The initial slogan was “The Fresh Food People.” But in 2012, the slogan was again altered to “Australia’s Fresh Food People” to emphasize on the Australian market, but then they again changed its slogan to the original. Currently, the company is operating 976 supermarkets, 1000 stores and 19 convenience stores in Australia with the same slogan and logo. The major offerings of the company are groceries such as vegetables, fruits, meat, packaged food. Along with this, they sell magazines, DVD’s, household products, stationery and pets, and baby supplies, thus satisfying all the demands of its customers under one roof. It has also launched its online platform to sell its products and directly deliver at the footsteps of the customers. The name of the online platform of Woolworths is “Home Shop”. To provide more convenience and increase in the customer base of the company, the brand has launched its loyalty schemes providing 2%, 4%, 6% or 10% discount to its potential customers on the repeated purchases.

Strategies of Woolworth

The main business strategies undertaken by Woolworths are as follows:

Customer oriented business: the major strategy of Woolworths is to provide the products and services to satisfy the needs and demands of its customers. To provide high satisfaction, the company analyzes the shopping habits of their customers and divide their supermarkets into different segments for the customers to easily access. A customer is the main element for any business. Hence, satisfying a customer is really important for any company. This strategy helps in attracting customers and

Create brand value: to satisfy the customers and influence them with their performance to create the brand value of the company in the market. Brand value is essential for the growth of business and its survival in the competitive business world. Brand value can be created by satisfying the customers, providing quality goods, etc.

Better customer relationships: the company mainly emphasizes on creating a better relationship with its customers to retain them. It is very profitable to retain old customers than dealing with the new ones. Thus, the company is providing the loyalty points. It will help to create a better goodwill of the company.

Intense Availability: Woolworths is making the availability of the products everywhere in Australia so that its customers can easily access the products and they can relate them with the supermarkets and outlets of Woolworths. Providing good quality products is a good thing but it is important that you are making it available for a variety of customers. The customers should be able to access your products, if you want to retain them.

Product dominance: Woolworths is dominating the market by providing a wide range of products. As they are the market leaders in grocery, along with this, the company is providing clothing, footwear and accessories range to have major access in the overall market.

Low-cost strategy: Woolworths has lowered down its production cost, to make the availability of their products at reasonable prices to attract more customer base. This strategy is used by many companies in order to attract customers. Similarly, Woolworths also use this strategy.

Availability: the company is emphasizing on the availability of its products, in order to obtain major market, share and retain the customers. Woolworths is supplying its products intensively in all its branches in all the countries

Sustainable farming: Woolworths is working to sustainably improve the farming conditions by the farming programs of the company in different areas. By doing so their quality of the product can be increased and the production cost incurred to produce the grocery can be reduced. This will result in higher profits.

Energy efficiency: the company is focusing to improve the energy efficiency in its operations. The target of the company is to reduce the relative energy usage by 40% as compared to the energy consumed in the benchmark year.

Brand labeling of Woolworths: they have four levels of labeling for their products

Woolworths home brand: under this labor, the company supplies the household products and groceries, which is packaged in simple white and red accented packing.

Woolworths select: in this category, the branded premium products of the company are packaged which will provide premium packaging of food, shampoo, dog, food and potato chips. The premium packaging provides quality assurance to the customers.

Woolworths Gold: the gold branding will ensure the two criteria’s out of three to label the gold quality products.

Woolworths fresh: the products lying under this quality, will ensure strict criteria and endorsement of testing of the product range of the company. all the testing of products is done by the experts. The products under this category are Emily’s kitchen, fresh soups, and yummy meals.

Macro Wholefoods market: the family range provided by the company are packaged under this category such as gluten-free diets, vegetarian and organic food. The wholefood product range shows the sign of healthy food with less salt, sugar and fat levels.

Conclusion: Woolworths is a grocery supermarket dominating the Australian market as the major player of the duopoly grocery market of Australia. The company has formulated various strategies to impact the preferences of the customer and increase their customer base. The ethical measures have been considered by the company to influence the preferences of their customers. The water-related issues, energy consumption issues, packaging related issues have been taken into consideration while formulating the strategies of the company, impacting much to the market.

In this way, we can discuss the business strategy of the Woolworths. If you have a similar assignment to write and are searching for assistance then, you can contact Essay Help USA and get the guidance you need.


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