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SWOT Analysis of Woolworths Supermarket

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Woolworths is an Australian Supermarket founded in the year 1924. Woolworths Supermarket is a chain of Woolworths Group. It is headquartered in New South Wales, Australia. It operates 1000 stores across Australia. They are renowned for selling grocery items. Apart from that they also supply products related to pets, house hold appliances, health care, baby products, stationery, beauty products, etc. Their yearly turnover is around AUS$56.72 billion (2018).

Situational analysis of a company is a prime concern for its proper functioning and success. For this, the strategic planning tool is to be used for the analysis and the best analysis which can be carried out is SWOT. If you face problem in writing or your assignment, then take Assignment Help California, you will get your work done by the professionals. SWOT analysis is done by the managers of a company, and Woolworths Supermarket also follows it. The company begins by identifying important aspects, such as Strengths (S), Weakness (W), Opportunities (O) and Threats (T) that it possesses in its current environment.

Only the analysis of strengths and other traits is not sufficient. Reviewing it is also of extreme significance, and Woolworths carefully practice these two steps. It is one of the leading firms in industry, and it has reached that level by maintaining its dominant position in the market.

Effective coordination among various departments of the company is required to be carried on in the interactive process of SWOT analysis. All the sectors of an organization i.e. marketing, management, finance, operations, information systems, and strategic planning have to function in coordination.


The interactive process of SWOT analysis aids in the identification of the-

  1. Internal strategic factors - It includes strengths and weaknesses.
  2. External strategic factors - Opportunities and threats fall under this category

SWOT Matrix - Both these factors when combined lead to the generation of a 2*2 matrix known as the SWOT matrix.

Also, it helps in the development of four types of strategies: -

  1. SO (Strength Opportunities) Strategies
  2. WO (Weakness Opportunities) Strategies
  3. ST (Strengths-Threats) Strategies
  4. WT (Weakness-Threats) Strategies


There are number of strengths which help the company to attain the top position in the market. They also aid in penetrating new markets in addition to protecting their market share existing markets. Fern Fort University-Extensive Research has found the following strengths of Woolworths-

  1. Consistency in the quality of products in the company due to automation.
  2. Strong Brand Portfolio is one of its strength.
  3. Good returns on capital investment.
  4. Reliable suppliers of raw material.
  5. Strong distribution network of the company.
  6. Successful execution of new projects.
  7. Skilled and motivated workforce.
  8. Culture among distributors and dealers.


The company does have some weak points where it needs to focus and work upon. Some of the weak areas of the company are -

  1. Limited compatibility of company’s organizational structure with the present business model. This leads to a limited expansion of products.
  2. Gaps in the range of products sold by the company.
  3. Lacks in product demand forecasting. Therefore, the company loses various opportunities.
  4. High investment due to high days’ inventory thus, generating hurdles in the long-term growth of the company.
  5. Lacks the ability to tackle various challenges.
  6. Could only manage to succeed in the core business, not outside it.


  1. Government agreements in opening new markets.
  2. Increased profitability due to new taxation policy.
  3. New customers from online channel.
  4. Decreased transportation cost due to lower shipping price.
  5. Increase in customer spending and economic uptick due to slow growth rate in the industry.


  1. Irregular innovative product supply.
  2. Increased cost of raw material affects its profit.
  3. Continuous fluctuations and different laws of product standards that may lead to lawsuits to be faced in various markets.
  4. Paris agreement’s new environmental regulations that are a threat to the existing categories of the available products.


Despite the existence of a strategic planning tool for the company, there are some limitations discovered during the SWOT analysis of the organization.

  1. There are certain features or factors which act as strength as well as a weakness for the company.
  2. The analysis paves no way for competitive advantage and its achievement.
  3. It's just an overview of the discussion of implemented strategies.
  4. It offers only a few changes according to the perspective.

This was the strategic planning tool of Woolworths. It is difficult to write the SWOT analysis of a company as one has to invest a lot of time in researching the stats. If you do not have much time take Assignment Help USA. You might also be interested to read: the marketing strategy of Woolworths.

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