Business Analysis Report: Woolworths

Business Analysis Report
Student Name
Course
University
Date
Background Information
There are several supermarkets and grocery stores that have operated in Australia for many years including Woolworths. The industry thrives because of various key drivers such as real household disposable income, population, consumer sentiment index and increasing demand from cafes and restaurants within and outside the region (Redman, 2018). Nonetheless, it is vital to note that the Supermarkets and Grocery Stores industry is quite competitive. The businesses involved in the industry such as Woolworths and Cole strive to retail a wide range of food products and groceries that meet consumer needs, tastes and preferences. Considering factors such as increasing Australian population and high returns on investments, individuals and organizations have been influenced into venturing in the industry.
One notable competitor that is giving established outlets such as Woolworths’ sleepless nights is Amazon because of its low cost private label products. Through price reduction, Amazon has over the recent past managed to undercut the big supermarket chains in the region by nearly 50% on household commodities and as shown on figure 1 below (Redman, 2018). As such, it has been able to capture a substantial part of the market share. It has been quite impossible for other outlets like Woolworths to compete with Amazon in that regard because in some cases the latter offers prices that are low than their purchase prices.
Figure 1:
Woolworths which has operated in Australia for close to 100 years since the first store was opened in 1924 is one of the biggest casualties of the competition from Amazon. Woolworths has lost a significant portion of its market share to Amazon and that is despite efforts to compete on price (Redman, 2018). With business analysts forecasting even more competition over the next five years, it is imperative that Woolworths conducts a thorough analysis and evaluation of its internal and external issues and make the necessary adjustments that would make it stand out.
Issue One
To begin with, Woolworths is plagued by the issue of poor online customer service. There have been numerous customer complaints regarding Woolworths’ online shopping platform particularly when trying to purchase groceries. Consumers have shared that the website is not customer-centric and that they are unable to receive real-time feedback to their questions and enquiries. In the current business dynamics, consumers demand not only for more but also real-time engagement with the businesses they want to transact with since they have a wide range of options at their disposal. According to Camilleri (2019), “Customer-centric companies are as eager to understand their customers as they are to win their business -- and that holistic understanding tends to make everyone's jobs easier”. Through being customer-centric, Woolworths will not only address concerns as they arise but will also close more sales (Kim and Hawamdeh, 2008). In this regard, Woolworth should invest in revamping its website and incorporating functionalities that will ensure consumer concerns are addressed real-time.
Objectives
Based on the above, the following objectives have been developed.
* To revamp its website and incorporate customer-centric features and functionalities within the next 6 months.
* To double the number of sales from online transactions within 6 months.
* To receive positive and glaring customer reviews from the improved online transactions in the next 6 months.
Digital Business Theory
Over the recent past, digital ecosystem has been identified as an essential concept that assists organizations such as Woolworths overcomes issues like the ones highlighted above and also gain competitive advantage. According to Gasser (2015), “A digital ecosystem is defined as: “An interdependent group of actors (enterprises, people, things) sharing standardized digital platforms to achieve a mutually beneficial purpose”. As such, through the investment in a customer-centric website and effective management of its social media pages, Woolworths will benefit in several ways. It will address the challenges of poor online customer service and customer loyalty. It will also increase its customer base and hence its revenues and profits. Woolworths through effective use of the digital ecosystem will also achieve competitive advantage.
Plan
To achieve the above objectives, the following plan has been developed.
Step

Justification

Control Measure

Role

Use surveymanager to research to identify the kind of online interaction that Woolworths’ customers require.

By identifying on the sort of interaction and engagement the customers require Woolworth will be better placed on developing a website that is tailored to those needs (McLean and Wilson, 2016).

Sufficient evidence by way of secondary research has been developed to ensure knowledge of topic

Marketing Coordinator

Scan for experienced and skilled website creators who will create a customized website that endears to the needs of Woolworths consumers.

It is important to seek the services of skilled website creators who will customize a website that will not only ensure continued interaction with consumers but will also stand out (McLean and Wilson, 2016).

Generate a list of different website creators in the region, their skillsets and costs.

Marketing Analyst

Conduct a pilot test for one month to ensure that it is easy to navigate, provides 24/7 support. Additionally, ensure that it allows consumers to conveniently make their purchases through the provision of various modes of payments.

It is essential to conduct thorough testing of the new website before it is rolled out to iron out any problems. Pilot testing will check whether it has solved the challenges consumers faced previously (Całka and Pałys, 2016).

Task the staff at Woolworths to test the new website by trying to make purchases or reach out for clarifications.

IT and Marketing Coordinators

Continuously update and upgrade the website depending on changing consumer behaviors, tastes and preferences. Furthermore, ensure that the materials and products on the website are updated regularly.

Since technology and consumer behavior are very dynamic it is prudent to keep up with changes. The initiative will also assist to achieve competitive advantage

Task an individual in the marketing department to manage the website and report the activities and initiatives undertaken weekly to the team manager.

Marketing Department

Provide regular offers and discounts for purchases made through its website

The initiative will not only drive traffic to the website but will also influence consumers into giving positive reviews

Have a wide pool of suppliers who better terms from suppliers to ensure Woolworths doesn’t run into losses from the regular offers and discounts

Marketing Coordinator and Analyst

Timeline
Activity

Timeline in Months from June to November 2020

Extensive research on online interaction

1st two weeks of June 2020

Search and evaluate the best website creators in the region

Last two weeks of June 2020

Pilot tes...