Case Study Answers | External Analysis on Woolworths: BHO6505

Running head: MARKETING MANAGEMENT
MARKETING MANAGEMENT
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Running head: MARKETING MANAGEMENT
MARKETING MANAGEMENT
Name of the student:
Name of the university:
Author ’sNote:
1 MARKETING MANAGEMENT
Table of Contents
External Analysis on Woolworths ……………………………………………………………………………………… 2
Political Factors …………………………………………………………………………………………………………… 2
Economic Factors ………………………………………………………………………………………………………… 2
Social Factors ……………………………………………………………………………………………………………… 2
Technological Factors ………………………………………………………………………………………………….. 2
Environmental Factors …………………………………………………………………………………………………. 3
Legal Factors ………………………………………………………………………………………………………………. 3
Summary ……………………………………………………………………………………………………………………….. 3
Marketing Insight ………………………………………………………………………………………………………… 3
Closest Competitors of Woolworths ………………………………………………………………………………. 4
Key Consumer Base …………………………………………………………………………………………………….. 4
Market Position of Woolworths …………………………………………………………………………………….. 4
Reference List ………………………………………………………………………………………………………………… 5
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External Analysis on Woolworths
With the purpose of conducting an external situation analysis on the organization of
Woolworths, the PESTLE framework will be used for completing the same.
Political Factors
The growth of the retail business sector is more likely to be dependent on political
stability with trading partners and foreign investors showing interest in carrying out activities
related to trading and business. Although the balanced trade relationship between China and
Australia imposes less pressure alongside a stable fuel price, political disturbance does
discourage investors and businesses from entering the market (Holmes 2022). However, the
market is at astable ground such that the risk of business loss do not seem significant.
Economic Factors
Factors such as recession and increasing unemployment has a strong impact on the
financial performance for abusiness entity in the retail sector as it leads to lowering of sales that
eventually causes financial decline. Despite the global financial crisis that led amassive downfall
in the retail sales around the world, the Australian retail industry maintained its stability while
seeing to support organizations for maintaining continuity in business operations. Aside from
that, factors such as rate of inflation, growth rate, consumer spending as well as growth rate of
retailing industry does help organizations in forecasting the growth trajectory of the industry as
well as the organization.
Social Factors
Opting a healthier alternative is the relevant trend in accordance of which the retail
organization has to serve the desired quality of products (Mah et al. 2019). In that regards, a
range of new health products were introduced that satisfies the needs of healthy conscious
population. Capitalizing on that opportunity enables in retaining customers while remain a
dominant player in the market.
Technological Factors
Technology serves agreater purpose in providing better quality service with agility and
pace being the key factors for attaining success. As such, innovations like smart stores, robotic
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surveillance, home delivery mobile apps, etc. were some of the concepts that were introduced to
provide customers with adesirable shopping experience.
Environmental Factors
The aspect is reflected in the form of using environment friendly business practices
alongside participating in activities that intends to minimize the harm exerted on the environment.
As such, the retail organization has been investing in minimizing carbon footprint and wastage of
natural resources while adopting sustainability practices that in turn establishes the image of the
company as socially responsible.
Legal Factors
Transformations in legal requirements in regards to employment, competition, product
safety, consumer protection, health and safety, anti-bribery, gaming and liquor have a direct
impact on organizational operation. While the legal team needs to stay updated with the legal
changes such as ASIC, it does require following on various rules and regulations for keeping
stocks up to date.
Summary
Marketing Insight
The marketing insight offered by the above PESTLE analysis confirms that each macro
environmental factors have a direct impact on the business of the organization. As much as
factors such as balanced trade relationship and political disturbance have adirect impact on the
retail businesses, itdetermines the stability of the market as well as influences the profitability of
aretail organization. Owing to the balanced trade relationship between Australia and China, the
retail market in Australia has retained its stability thus letting Woolworths to operate its business
in amore stable ground. While the analysis reveals the political stability of the retail market, the
economic factors informs the direct relativity existing between business operations and aspects
such as inflation, rate of growth and consumer spending. These economic factors can thus be
inferred as ones that directly influences the financial performance of Woolworths with
worldwide event such as financial crisis causing the organization to suffer major loss. However,
the support from Australian market and market stability has supported Woolworths in continuing
its business operation. The consumer preference towards healthier product alternatives is the
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relevant customer trend circulating in the Australian retail market in accordance of which
Woolworths has started complying on the needs of consumer. As Woolworths intends to attain
considerable market share, it aims to accommodate with the circulating trends by capitalizing on
the increasing demand for healthy products that consequently aids the organization in remaining
adominant player in the market. The technology applications are more emphasized on providing
a desirable shopping experience to the consumers for retaining customer loyalty while
maintaining compliance with the legalized rules and regulations is mandatory for Woolworths to
avert from any form of legal claims. As for the environmental factors, Woolworths has to
maintain its image as an environment friendly brand with it seeing to adopt sustainability
practices as well as implement initiatives for minimizing carbon footprint.
Closest Competitors of Woolworths
While Woolworths has a reputed stand in the Australian retail industry, it has a
considerable number of adversaries to compete with Coles Group being the noted one that came
in second in 2021 in terms of acquisition of market share (Elliott 2018). Aside from that there is
Aldi that aims to gain the upper hand by seeing to serve groceries at the cheapest range.
Key Consumer Base
As much as Woolworths stands at being the largest supermarket in Australia, itprimarily
targets customers that has high income while at the same time appealing to those belonging in
the middle class demography. With it seeing to offer high quality premium products to the
targeted working class and upper-middle populace, the retail enterprise has aimed at retaining
customers with its provision of convenience as well as establishment of astrong brand name. To
that extent, technology applications as well as environment friendly approach of the organization
plays asignificant role in influencing Woolworth ’scompetitive position.
Market Position of Woolworths
The retail brand attaining amarket share of 37 percent holds adominating position in the
Australian retail market with its pricing being superior compared to competitors such as Aldi and
Coles (Statista 2022). As such, Woolworths position itself as being the leader in terms of market
share in the Australian retail industry while it seeing to focus on low pricing strategy and seeing
to provide value and satisfaction with its value and technology innovation.
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Reference List
Elliott, K., 2018. The Expert in the Aisles: Exploring supermarket narratives in Coles and
Woolworths magazines from 2009-2018 using machine learning techniques (Doctoral
dissertation, Department of Sociology, Macquarie University).
Holmes, A., 2022. Australia ’s economic relationships with China . [online] Aph.gov.au.
Available at:
[Accessed 13 May 2022].
Mah, C.L., Luongo, G., Hasdell, R., Taylor, N.G. and Lo, B.K., 2019. A systematic review of the
effect of retail food environment interventions on diet and health with afocus on the enabling
role of public policies. Current nutrition reports ,8(4), pp.411-428.
Statista, 2022. Australia: grocery retailer market share 2021 | Statista . [online] Statista.
Available at: [Accessed 13 May 2022].

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