Woolworths Limited : An Australian Company

As Aldi has already established itself as a large discount supermarket chain with over 10,000 stores in 18 different countries including Australia (2001), and holds a large market share in the grocery world due to its business culture and market leading initiatives. This report aims to provide the ALDI board of directors with:

According to Pettinger(2004) The Company extends its pillar of service not only by aiding clients in making decision to shop in stores, but also making it easy for them to drop by the stores and shop. There are two potential competitors existing in the market .There is Woolworths which has an 8% stake of the vast Australian market share and uses its subsidiaries such as Home Hardware and Timer, Thrifty Link, and Masters Home Improvement. There is also Metcash which has a 7.3% market share and uses its two subsidiaries: True Value Hardware and MITRE 10. Bunnings is currently the market leader in Australia (see Appendix figure1.1).Australia’s largest and most profitable home improvement retailer with (9,012,000) customers who shop at Bunnings over period of four week July 2014. This numbers was up in July 2012/13 which was 8,435,000. Bunnings potential competitors are Mitre 10 (1,789,000) and Masters (1,217,000).

Coles Myer Limited (CML) and Woolworths Limited (WOW) are two major Australian companies with extensive retail interest and listed on the Australian Stock Exchange. They are Australian public companies which operate a number of retail chains.

In the food industry Woolworths focus on having quality food everyday and all the time. They are known for their fresh produce and pride themselves on their “cold chain” concept where food is always stored between 5 and 0 degrees Celsius. They typically compete against supermarkets such as Shoprite, Spar and Pick n Pay obviously has a wider variety of groceries.

1. Place: Woolworths is at much fewer places than Coles thereby not preferred as much as Coles.

Bunnings is the market leader in this industry who gains 64% of total market share, followed by Mitre 10 with 13.0%, and Masters with 8.0% of market share (The Australian, 2016). The company’s revenue continuous increased since they started the business in 2011 to 2014, they gained total revenue around $1527 million in 2014 (Woolworths, 2015) but the company still got the loss from their operation expenses. Moreover, the sales dropped by 16% in 2015 that was the main reason for Lowe’s to delist the joint venture in the beginning of 2016 as it claimed that Masters has poor profit performance (IBIS, 2016). In the meantime, Woolworths publicised its intention either to selling the business or shutting it down (ABC, 2016, para. 15). Thus, there are several causes of these problems that Masters should solve in order to survive in this business and compete with its competitors.

Harvey Norman is one of the biggest consumer electronic retailer in Australia (D Richard, 2010), well-known for its recognisable brand name and local community involvement, Harvey

worldwide to serve the customers and is famous for the variety of products that it provides in the

The Australian apparel retail industry grew by 4% in 2017 to reach a value of $21,377.6 million. The industry is a major contributor to the Australian economy, accounting for 4.1 percent of GDP and 11 percent of employment. Approximately 70 percent of all Australian retail businesses are achieving profit. The ROI (Return on investment) for the industry was 25 percent in the year 2010, which is the same relative ROI for all industries.

Unlike other retailers they handle all their processes as well as follow Just in Time system (Value Chain Management)

I believe as a customer of Woolworths, the company is fully committed to their company and clients and not just in South Africa, but throughout the whole of Africa including the Middle East. In my opinion, I feel Woolworths is the most successful South African based grocery store.

The CEO of Mr Price is Stuart Bird. As a chief executive officer he has to respond to the Board of Directors about the strategic plans and policies

The revenue of Woolworths is mainly achieved through the retail stores all over the world.

“Woolworths Limited is an Australian retail company made up of a number of businesses all providing our customers with quality, range, value and everyday low prices. We 're built on a passion for retail, attention to detail, working hard, ensuring the safety of our customers and our people, and having fun.

The business took off, thriving at a relentless rate amid the war years. In 1931, Woolworths Australia opened stores in Auckland, Wellington, Christchurch and Dunedin and we were chosen to supply them with an extensive variety of confectionery.