Woolworths Situation Analysis - Case Study Example

WOOLWORTHS SITUATION ANALYSIS Name: Course Instructor’s name Institution Date WOOLWORTHS REPORT Executive summary This report will outline Woolworth's current approach to social, cultural factor in line with the company's PESTEL analysis. The report will cover the company’s trend for a green lifestyle which it is yet to adopt fully and the essentials and strategies to be taken up and observed. The report will cover the acculturation theory that Woolworths is also yet to fully implement.The report will also cover the sustainability strategy which the company seems to be slow in implementing it fully. On the other hand, the paper will give a sneak pick on Woolworth's customer relations comparing the company's customer statistics and the proposed Woolworths Supermarket App which seeks to make shopping easier for the customers since they can enjoy the benefit of carrying out their shopping in the comfort of their sets. The reports will also give a validation of the met accomplishments by the report. It will also cover the managerial implications to be carried out by the company's managers in reference to the discussed issues and how impactful they will be to the company in line with its competition with rivals withing this industry. Introduction Woolworths is one of the largest supermarket chains globally. Woolworths, is claimed to be in operational in a total of 21 countries with the prospectus of expanding further in the coming years. However, the company growth and revenues have been threatened by the increasing competition in the retail stores and supermarkets global industry due to the entry of rising competitors such as Aldi and Coles who have made an entry into this particular industry. Social culture is one factor inline with the company's PESTEL analysis that Woolworths needs to capitalise to have a competitive advantage in this already saturated industry. This report therefore aims to outline the situation analysis of Woolworth's social-cultural aspect. Situation analysis of social cultural factor as an external environment Green lifestyle approach Woolworths’ reluctance in adopting a green lifestyle seems to cost the company a significant number of potential customers who are preferring another retail store which have adopted this green lifestyle. With the consumer consumption of goods and services has increased tremendously across the world the issue of depletion of natural resources has also risen significantly throughout the world (Lee, Chang and Liu 2010). There has been a global outcry on the severe damage to the environment that has been caused due to the increase in consumption of goods globally. In this case, most retail stores have opted for the adoption of a green lifestyle which has seemingly won them a significant number of customers who have preferred to shop in these particular retail stores as opposed to those which are yet to adopt this approach. However, for Woolworth company, it seems like the company is not quite determined in adopting the ‘sustainable development’ approach which has consequentially cost it a significant number of customers both in Australia and the other countries where the company is operational. On the other hand, some of Woolworth's competitors have been quick to adopt the green lifestyle approach which is in line with their newly pledged goal to minimise the harmful impact that their business activities have on the environment in general. Through this approach, these retail stores have portrayed their concern and realization towards the societal and environmental threats which has won them a significant number of customers. Through adoption of this approach, these retail stores have also portrayed their goal towards green consumption and eco-innovation which has also sealed their reputation among the global market. Acculturation theory The acculturation theory is evident as the company trys to adopt to the varying cultures in the retail stores in Australian, New Zealand and other countries where Woolworths is in operation (Seliverstov and Olekhnovich 2013). In relation to this theory, woolworths seeks to give the it’s staff basic know-how on how to work effectively in new markets that have different environments and cultures. This also seeks to help these Woolworth workers in boosting their reaction to the “host” culture and how best to assimilate or integrate into this culture. In this case, the company is yet to fully integrate this theory in its retail stores. It is claimed that out of the 1,700 of its retail stores in Australia only half have been integrated with this theory. Not adopting this theory fully has therefore prevented Woolworth from maximising on all four contemporary marketing perspectives which include integration, assimilation, rejection and marginalisation (Gupta and Pirsch 2008). This has also slowed the company’s use of global celebrities to endorse their products and company brand in the Australian market. On the other hand, it has also missed on the assimilation company promotion perspective where it merges the host’s culture and that of the company’s countries of origin in its advertisement in an effort to create uniqueness. Sustainability approach Woolworth has also taken up sustainability as part of the company’s responsibility. However, the company is yet to adopt this responsibility seemingly fully. The company has implemented this responsibility only in its stores located in Australia where it has tried to reduce the company’s carbon footprint (Turhan 2016). However, for its operations outside Australia, the company seem not to fully implement this responsibility. Therefore Woolworth appears not to influence its retail supply chains fully to shift into becoming more sustainable as it has done in its stores located in Australia. This has therefore led to more customers opting for other retail stores which are clearly more sustainable than Woolworth. Most customers have therefore turned to Woolworth’s retail store competitors who are seemingly conscious on adopting sustainability. This has, therefore, cost Woolworth a significant number of customers both especially in the other countries apart from Australia where it has been operational. This competitors store are seemingly more vigilant in adopting sustainability where they have already set some essential sustainability goal, however, for the case of Woolworth it is yet fully to achieve its set goals for reduction of carbon emissions from their stores by 40% and reduction of carbon emission in their logistics operations by 25% by the end of the last quarter in the years 2015(Walsh 2014). Woolworth, therefore, appears to lag behind in its sustainability strategy compared to its competitors which is claimed to cause more of its customers to prefer the services of these competitors. Lack of online presence Woolworths is also notably losing more of its customers to its competitors due to lack of online retail stores. Sometimes back Woolworth came up with a digital advertising strategy where the company would have a Woolworths Supermarket App which was clearly an ideal idea considering the cureent advancement in technology. However, the company is yet to turn this formidable idea to a workable one. Woolworths Supermarket App idea seems to be neglected this can be claimed to the app management complication problem which cropped up in the early stages of its implementation in this retail store. However, most of Woolworths Supermarket App competitors have copied this idea and implemented it, an aspect which has cost Woolworth, quite a significant number of customers. This app is essential since it allows customers to do their shopping from the comfort of their seats back at home with the guarantee that the items they shopped through the online app will be delivered to their location. More customers have fully embraced this aspect which for the case of Woolworth it is yet to implement it fully especially for its retail store's outlets outside Australia. This has therefore led to most of Woolworth customers to prefer its competitors due to the ease in shopping which has enabled them to save time and money that they would have incurred to travel to the exact location of these retail stores. Managerial implications Woolworths competitive advantage can only be improved the company is more focused on its fostering its social-cultural aspect along its PESTEL analysis. In this case, the company should be keen to implement its green lifestyle approach and sustainability approach which have significantly cost it quite a huge number of customers.The company seems to focus more on increasing the number of the company’s outlets in the new markets than creating the company’s products online present, promoting its green lifestyle strategy and fostering its sustainability approach (F.W. Woolworth and the American five and dime: a social history 2014). This are aspects in line with the company social cultural factor which will strategically help the company boost its awareness in the new market and also attract more returning customers as it seeks to create customer royalty on its products this will also give the company a personal touch with its market . Woolworth management should, therefore, stive to achieve this goal through implementing green lifestyle and sustainability approach along the company's policies.On the other hand, the company should ensure that these are the policies which govern its venturing action into the new; in this case, it will be required to adopt green lifestyle and sustainability strategies and focus on making the Woolworth app an essential aspect of the company sales prospectus in order for them to have a competitive advantage in the market(Gupta and Pirsch 2008). Conclusion Evidently, Woolworth is facing stiff competition in its current market due to the negligence of its social-cultural aspect in line with the company PESTEL analysis. The company seems slow in adopting a green lifestyle approach which is increasing becoming part of the buyer's preferences when choosing a retail store. On the other hand, the company is also losing more customers due to its slowness in implementing its sustainability aspect an issue which is also becoming part of the retail store customers preference in choosing retail stores. Woolworth negligence in creating a formidable online footprint in its current market is an issue which has also cost the company a significant number of customers. Bibliography F.W. Woolworth and the American five and dime: a social history. 2014. Choice Reviews Online, 41(05), pp.41-3012-41-3012. Gupta, S. and Pirsch, J. 2008. The influence of a retailer's corporate social responsibility program on re-conceptualizing store image. Journal of Retailing and Consumer Services, 15(6), pp.516-526. Lee, W., Chang, C. and Liu, Y. 2010. Exploring customers’ store loyalty using the means-end chain approach. Journal of Retailing and Consumer Services, 17(5), pp.395-405. Seliverstov, A. and Olekhnovich, N. 2013. SOCIAL AND CULTURAL ASPECT OF DEVELOPMENT OF THE EXPERT’S COMMUNICATIVE COMPETENCE. SISP, 0(8). Turhan, G. 2016. Building Store Satisfaction Centred on Customer Retention in Clothing Retailing: Store Design and Ease of Shopping. IJRBS, 3(1), p.89. Walsh, B. 2014. Chain store retailing in Ireland: a case study of F.W. Woolworth & Co. Ltd, 1914-2008. Jnl of Hist Res in Mrkting, 6(1), pp.98-115. Read More