Analysis of Woolworths PESTLE and SWOT Analysis

Analysis of Woolworths PESTLE and SWOT Analysis
June 22, 2020

Analysis of Woolworths PESTLE and SWOT Analysis

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Analysis of Woolworths PESTLE and SWOT Analysis

Students pursuing management courses in Australian universities are required to deal with various kind assessments and one of them is "Analysis of Woolworths". Under this assessment, you are asked to analyse the Woolworths Limited Company by using SWOT and PESTLE analysis methods. As per our management assignment writing experts, you can focus on the Woolworths value chain analysis, market strategy analysis, impact on the environment, factors affecting the company, its opportunities, threats, etc. In case, if you find any sort of issues in writing the Woolworths' assignments, do let us know and our experts will help you out.  We have a pool of talented, skilled, and experienced marketing assignment writers. You can choose as per your interest/budget and/ or preferences. Below, we have explained "how to solve Woolworth's assignments?" by conducting PESTLE and SWOT analysis methods. Let's have a look at the details given under. 

Introduction to Woolworths

Woolworths is a company dealing in retail outlets in Australia, New Zealand, and other countries. This company was incorporated in 1924. The major operation of Woolworths includes running of supermarkets and aims to deliver appropriate and expedient shopping. Now, it is the 2nd largest retail company in New Zealand and Australia. The main products of this company are fruits, vegetables, DVDs, meat, health products, packaged food, baby supplies, etc. Woolworths holds the AUD$ 55.669 billion earned revenue in the year 2017 whereas the recurring profit was 2.326 billion Australian Dollar in 2016. The company has now hired over 2 lakh employees and the major areas of this company are online stores, supermarkets, general merchandise selling stores, liquor retailing, hotels, gambling etc. 


PESTLE analysis is a marketing principles concept used to track the environment of the companies they are dealing in and/or planning to introduce new products or services. It is a mnemonic including factors like political, economic, social, technological, legal and environmental. These factors are helpful to keep a bird's eye over the environment from several angles. The factors of PESTLE analysis are described below by our marketing assignment help experts

  • POLITICAL FACTORS: Political factors can be explained as an intervention that is imposed by the government on an organisation. Few common political factors are political stability, government policies, environment laws, foreign policies, trade restrictions, and more.
  • ECONOMIC FACTORS: Economic factors directly or indirectly affect the economy. Furthermore, it also impacts the working of an organisation and business firms. The factors known as economic factors are tax rates, interest rates, wage rates, inflation rates, growth rates, and employment rates.
  • SOCIAL FACTORS: In PESTLE analysis, social factors are referred to as culture and social-related factors that affect the customer's buying and consumption behaviour in regards to products and services. Few important factors may be community, cultures, society and family. Such factors may affect the customer's lifestyle.
  • TECHNOLOGICAL FACTORS: These deal with different technological advancements that are adopted by various industries to take a step ahead in the field of technical innovations. All these factors play an important role in affecting the marketing actions of business by introducing new products, services, and working ways. 
  • LEGAL FACTORS: Legal factors are considered as the imposition of different laws, rules, and regulations by the higher authorities, government, or any other related entity of that specific country. Legal factors impact firms and businesses consumer behaviour. Therefore, it also affects operational activities and decision-making within an organization. 
  • ENVIRONMENTAL FACTORS: Environmental factors are also known as ecological factors. It has an important role in influencing the survival, growth, and operations of an organisation.

This is How Our Marketing Experts Performed a SWOT Analysis of Woolworths

SWOT analysis is described as a set of analysis techniques and strategic planning that helps in examining strengths, opportunities, threats and weaknesses of an organisation. Therefore, it can be said that the key purpose of this analysis is to determine and assess different external as well as internal factors. If we talk about the Woolworths, the following are the SWOT analysis results. Strength: This is something which can be explained as the processes/steps/ or activities performed by a business in its gamut of maneuvers in the best way. The strengths of Woolworths are explained below:

  • Market leadership: In Australia, there are two market leaders (Woolworths and Coles) who govern the entire Australian retail market. In this situation, Woolworths cover around 80 % of the market share which has reduced the threat of competition drastically.
  • Managing perceptions: Managing perceptions and balancing segments have played an important role in the growth of Woolworths. It is made possible by a reasonable promotion policy and pricing strategy which was not much premium but also not completely low. 
  • Employee policies: Woolworths is a company that has always been aware of its employees courteous and training. In order to ensure employee satisfaction, they offer perks and bonuses regularly apart from salary.

Weaknesses: Weaknesses are generally termed as an area of an organisation or business that needs improvement. Talking about the Woolworths, the following are the key weaknesses: 

  • Confused positioning: Several income segments are targeted by Woolworths using the same products. As a result, we found that it creates confusion for the consumer whether the supermarket offers value prices or not.
  • Partial behaviour to market: As we know that Woolworths is a retail company that targets premium as well as value segment selling both aspirational and affordable products. Conversely, Woolworths can be said to be partial as it gives more attention to better services and products. 
  • Price wars: This Company has always been in a price war with its competitor Coles. To dent the competition, few major blunders are made in terms of pricing in the supermarket chain which has resulted in major losses.

Opportunities: Opportunities concerned with Woolworths SWOT analysis are described below:

  • Concentrate on experience: Almost all the retail chains have the same thing to provide especially the value segment. The opportunity involved is creating a difference in experience within the store including personalised services, self-checkout, AI-based shopping assistants, and personalised loyalty schemes. It will be quite helpful in making a positive difference in the market. 

Threats: Threats are the type of factors that negatively impact the business such as lack of recruits, change in market requirements, supply chain issues, etc. Therefore, it is important to anticipate such threats at early stages and develop a plan to overcome them. Following are the threats related to Woolworths Company:

  • Competition: We read above that Coles is the only biggest competitor of Woolworths. But now, Amazon has entered into food retail which can be a serious threat. 
  • Focus on health: The customers are now aware of what they shop and how they shop. Also, they are very much aware as well as concerned about health. Chemical-free and organic products are in high demand nowadays and supermarkets would require bringing change in their product and this could be another threat to Woolworth's future.

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