Its central business target is the provision of retail and financial services to top and middle class categories mainly in South Africa but also in Africa, Australia and New Zealand. This consists of men, women and kids.
Who are the competitors in the market?
Other retailers selling food (butchers, bakers, convenience stores, etc. - excludes takeaway food and restaurants)
Mass vendors (including discount shops; department stores)
Size of the company
Woolworths Holdings Limited can be an investment positioning company and one of the most notable 100 companies listed on the Johannesburg Securities Exchange
Shares in Woolworths: 52% of market
Employees: 24, 649
Turnover: R 25. 582bn p/a
Market talk about: 9%-10%
Woolworths' vision is to provide quality products and services to its customers all the time through price strategies, fresh food strategies and human resource strategies. Woolworth's main strategies are to increase efficiency and become cost effective.
Woolworths' mission assertion and main strategy is 'to deliver to customers the right shopping experience each and every time. '
Sustainable expansion within the context of the changing communal and environmental needs
Woolworth's goal is to work harder to drive sociable development - poverty drives environmental destruction and that subsequently creates more poverty. To greatly help alleviate poverty, we have to expand the existing initiatives of the Woolworths Trust and website link with the transformational goals to drive business development.
The third top priority relates to Woolworth's effect on the environment, in particular the issue of diminishing biodiversity.
The fourth priority addresses climate change straight by concentrating on minimizing Woolworth's carbon footprint. Woolworths recognizes local climate change as a concern requiring urgent action if the risk of serious harm to global prosperity and security is usually to be avoided.
The strategic intention considers four regions of focus: the clients, operations, and individuals. Woolworth's main strategy is to increase efficiency and become cost effective. Under this strategy there are different strategies that the business uses such as price strategies, fresh food strategies and human being resource strategies/growth strategy.
What would you change? What elements of the strategy?
Low price Strategy: (high quality vs. good deal) - I'd change the current pricing framework as it offers negative notion about the grade of their products. For consumers to believe that they give high quality, price must be somewhat more than common as it generates a value-add considering the suggestions costs.
Product Strategy: (healthy organic and natural foods) - I would increase the percentage of organic food in the stores to increase/promote healthy eating.
Growth strategy: (going into new markets) - The stores are currently located in high financial areas. I'd therefore present Woolworths into low to medium income earners in several locations.
Why can you change it out? (What inside/external pushes?)
Low price Strategy: (high quality vs. good deal) - Because the input (set & varying) costs need to be considered in order for the value put into be fairly offered so the company can also visit a good profit depending on the area of location. E. g. a Woolworths store in Cape Town will are different in prices to a Woolworths store in Mitchell's Plain.
Product Strategy: (healthy organic and natural foods) - When a big amount of customers ingest a lot more of organic and natural products, the will relate to Woolworths as the healthy option.
Growth strategy: (joining new markets) - This will give everyone the same shopping experience and affording them a chance never to travel too much for shopping.
Safety strategy: When this is integrated in people, it can have a multiplying result and reach a lot of men and women within a brief period.
Financial Services: (credit cards & personal loans) - Both credit cards allow customers to earn "W points". Therefore, it is not essential to have cards instead of one.
One stop shop: (markets a number of things) - I'd focus only on one or two offerings as too many products create dilemma about the real product offering.
How could you change it out?
Low price Strategy: (high quality vs. good deal) -
I would force the price a bit higher because the high quality will not match the price. I'd include all costs, improve presentation and set a higher mark-up.
Product Strategy: (healthy organic and natural foods) -
I would get more suppliers of organic food on board and catch the attention of more healthy-conscious customers as well create more recognition on healthy eating and how it impact on effective management.
Growth strategy: (coming into new marketplaces) -
I would bring in more Woolworth's stores in medium income areas first. Then, I'd rotate it out to low income areas (townships) such as Khayelitsha.
My strategy achievement in conditions of company goals
Low price strategy: one of Woolworth's main strategies is to increase efficiency and be cost effective. The benefits of our strategy, the high price high quality strategy, allows the quality of Woolworth's goods to be high on a regular basis. You will see less costs entering the study and implementation of many of the numerous strategies for Woolworths, to allow for the high quality low price strategy. It will also be less time consuming for Woolworths and Woolworths is known in the past for having high prices. People still have the perception of Woolworths having high prices.
Product Strategy: Because they may have allowed for these high prices they are also able to improve the percentage of organic foods. This is obviously good for healthy eating habits and perhaps in the long-term decreasing the bad eating disease rate in South Africa. Woolworths can also create healthy eating plans for individuals to increase customers for the company.
Growth strategy: (entering new markets) the good thing about this would be to increase the Woolworths clientele. This would allow for many other buyers to see the Woolworths experience.
Safety strategy: The features of this might be promoting the nice ethics of the Woolworths Company.
Financial Services: the benefit of merging the visa and the difference cards allows for efficiency when approaching to the till at a Woolworth's store. You will be able to have the choice on which transaction you would like to use. This will allow for more customers to get involved with both choices. Having one Woolworth's greeting card with both options is preferable to having two credit cards.
One stop shop: The benefits of having each one of these products is the fact that it attracts all needs. This also allows the business to employ a variety of promotion techniques to cope with to their customers.
Low price strategy: At the moment times are hard and people are still experiencing the last recession. To improve the prices could make the company have a bad name. The main reason they decrease the price is to give everyone the chance to hold the Woolworths experience and be in the same level as their opponents offering goods at better quality. So increasing the price could steer the clients away although a slight increase won't really have an effect on the customer too much due to quality of the products.
Product strategy: Costs of these organic goods are costly and the company is already trying very hard to keep high quality goods at low prices.
Growth Strategy: Woolworth's prices are greater than the usual Shoprite. Many people in low earning areas have a tendency to go to Shoprite but there quality of food is much less good as Woolworths. People in low income areas are not really interested in quality and they are more interested in price. I feel this can be a disadvantage to put a Woolworths store in low income areas because they'll not make enough money to keep the store heading. Maybe they could increase the amount of stores in the medium earning areas but still this would be a far reached goal to bring it in the reduced earning areas. The price tag on the goods is just too much.
Safety strategy: Because this is seen within work. Most staff won't want to waste materials their time extending this technique to their families. It'll be seen as extra work to be done.
Financial services: this will be time consuming for the business and you will see costs engaged to implement this strategy.
One stop shop: Woolworths has already made itself known for having all these products however, many products are usually more recognized to their customers then others. Woolworths will need their other products, like homeware, better advertised. Having all these products is the store can be expensive. People will somewhat choose to visit Mr. Price home than to buy homeware devices at Woolworths. Woolworths must fortify their market within other products or they'll be losing income.
Woolworth's strategy works very well. It works so well that Personally i think these small changes won't make much of a difference because they really know what they have and they know where they are simply in the market. They were in a position to change their strategy over the years and even by doing so it includes made them even more successful. This is the reason Personally i think there strategy is well integrated.
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