Evaluation of alternative strategies:
There are many corporate level strategies, but there are a few main ones that would work for Woolworths. I will proceed to explain what the chosen strategies are and how Woolworths can use it to better their retail business.
Growth Strategy:
Woolworths could make use of a growth strategy. A growth strategy is simply when a business/ organisation wants to sell their products to a larger number of markets either through the businesses it has or the business branches they want to build. By doing this, they become more competitive, as they have more branches they can now sell more of their products to more people in different locations, this also means they will have less threat of new entrants into the retail industry as it becomes harder to start a business in this industry with the oligopoly of giants.
Organisations opportunities:
By growing their organisation it becomes apparent that they could start selling different products, which leads to a whole new world of opportunity. Woolworths could possibly open up a furniture section to their business, as this would encourage more people to buy furniture from Woolworths, they may see how good the other products of Woolworths are, and this would increase the buyers, and Woolworths could start making even more profit. This strategy is good because it keeps the business moving forward; it comes up with new innovative ideas and it lets the business expand to new frontiers. The negative of this strategy is that new innovative ideas are often hard to come by and it requires people to think outside the box.
Vertical and horizontal integration:
In backward vertical integration, the business chooses to take control of the inputs of its business, and the...
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...are that their business won’t move forward with this strategy, and as they are not moving forward they could potentially loose business.
Chosen strategy:
The best strategy would be the growth strategy, because in this modern era, businesses have to be constantly on the lookout for new opportunities. Buyers are very fickle and they always want something new and improved and if you cannot provide them with that then they will find an alternative that can provide them with what they want. As business is getting harder, businesses have to keep finding ways in which they can improve the way they do things and make themselves more productive. With the growth strategy, the business will keep looking for new ways, and this could improve the overall business, as they will be working harder and they will stay competitive with all the other businesses in the retail industry.
When one recalls numerous companies in North America, an endless list of organizations can be compiled, ranging from recent start-ups to historic organizations. Last year, I had an opportunity to gain knowledge in the corporate business field from the most historic company in North America. Hudson’s Bay Company(HBC), a department store retailer focusing on fashion apparel, accessories and home products, which was incorporated in 1670 and has ninety locations in Canada. This paper will explore HBC’s recent changes in a strategic direction as well as corporate level strategies and its implications with using relevant strategy typologies and Michael Porter’s competitive strategy frameworks.
Corporate level strategy specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets. I would recommend that Overnight Corporation should think about using the Dominant business diversification strategy, where the company would generate between 70 and 95 percent of its total revenue within a single business area. By using this strategy Overnight could become more diversified in its goods and services (Hitt, Ireland, Hoskisson, 2013, p.164-166).
Maxx benefits from chaos by picking up the pieces, merchandise at a discount, when other retail stores close, or have overruns, or unexpected changes in demand and in return pass these savings on to their customers who shop for value (Levine-Weinberg, 2016) This is the demand-side benefits of scale when the consumer rather pay less for name brand merchandise than to pay more for the same designer in the department store. The stores that where having difficulty in the retail market left themselves vulnerable by not defending their position and T.J. Maxx proactively attacks this opportunity with its purchasing power and passes the savings to its customers. This proactive process of attacking and defending is what Wee (2016) calls the holistic and balanced perspective of handling competition. Moreover, this business warfare strategy of attacking struggling competitors is called offensive marketing warfare strategy (Grewal, 2014).
This is a point that rings very true. Store development is important, but there are other key features that need to be considered for continued growth
On January 22, 2002, Kmart filed for Chapter 11 bankruptcy protection becoming the largest retailer ever to do so in U.S. history. Most industry analysts attributed the immediate cause of the company's bankruptcy filing to a dull holiday season and stiff competition from WalMart and Target as the chain's more fundamental problem. But competition wasn't the root cause of Kmart's consistently poor performance. The real reason for Kmart's poor performance is that Kmart never had a marketing strategy. Kmart completely misunderstood its market and was positioning itself in the wrong direction. Also, on the strategic side, there are issues of where stores were located. On the whole, Kmart stores did not seem to be sited as well as the stores of the competition. Then there was the issue of technology. While Wal-Mart was becoming the relentless efficiency engine that we know today by investing in technology and streamlining the supply chain, Kmart held back. As Wal-Mart developed an infrastructure that enabled it to lower prices, Kmart slipped into a price disadvantage. This paper discusses these strategic problems that led to Kmart's poor performance.
According to a North American dictionary entry vertical integration is defined as “merging of companies in supply chain: the merging of companies that are in the chain of companies handling a single item from raw material production to retail sale” (“Vertical Integration,” 2009). Though the definition of vertical integration is quite simple the concept is much more complicated than one may think. There are four strategic factors that must be established by business leaders before the implementation of vertical integration can take place that must be well-thought-out in order to achieve any level of success. The factors that influence vertical integration are economic, market, operational, and strategic.
Marks & Spencer is a perfect example of a company that had a successful strategy but failed to adapt to the changing environment and have therefore suffered from ‘strategic wear-out.’
After the mistake that Tesco did, they begin to loose their market share so, the competitors were trying to gain what Tesco was loosing, and they did. For example, Lidl had increased 10 percent in their sales, which is a big threat for Tesco because other companies are taking Tesco’s place in the market. In United States and Australia there are some stores that it sell very cheap products without looking at their quality. This was very tough for Tesco to handle because they cannot compete with this amount of discounts. In the same time, Tesco are trying to return to its position as before but, their competitors are using Tesco’s falling into their benefit by expanding more and making offers so they can get higher market share. For example Sainsbury, Asda, and Morrisons are investing more while expanding as well to take Tesco’s position and prevent Tesco from coming back as they were
...pts which Woolworths align into are: Listening, acting and learning. Employees interacting with customers gives immense knowledge on what they need, what they think about the stores, maintenance and customer service. Considering the feedback of the customers and start enact to those feedbacks (i.e) acting to their needs. Learning things from customers, help Woolworths in drastic changes in terms of functionalities and progress. For instance, customers always bought the coloured stationary, by changing this concept Woolworths had vastly improved the layout of the category of customers.
A focused cost leadership strategy would be appropriate, in other words, a attention to consumers. Cost focus is a strategy that will focus on a particular buyer groups or a geographic market and attempt to serve only that place, to the exclusion of others. When looking at cost factors, there are very few options available to K-Mart in developing a pricing strategy to compete with Target or Wal-Mart. Therefore, K-Mart would not have many price strategy options available. However by using a cost focus strategy, and matching the quality of well known brands but keeping cost low by eliminating advertising and promotional expenses will save K-Mart money.
Vertical integration is where a company becomes their own supplier or distributor through acquisition. Seprod uses the strategy by their acquisition of Belvedere Estate in 2006 so as to expand its dairy farm pastures to increase their supply of milk output from the dairy farming. They also use vertical integration in their subsidiary Industrial Sales Limited. This is done by making them the main distributer and marketer of their
The food and staples retailing is an increasingly competitive industry. The market giants (competitors) are Coles (owned by Wesfarmers) which has 741 stores across Australia and plans to add 70 m...
Bibliography: Lawson, A. (2013). Analysis: Is Asda’s five-year strategy the right one?. [Online] Retail-week.com. Available at: http://www.retail-week.com/sectors/food/analysis-is-asdas-five-year-strategy-the-right-one/5054989.article [Accessed 23 Jan.
This report provides an analysis and evaluation of strategy implementation used by California Pizza Kitchen (CPK) and discusses the effectiveness of their strategy through organization design, control systems, people and culture. My research concluded that CPK relies on control systems to undertake a majority of the company’s operational activities and that human resources and organizational culture must support the strategy implemented, which it does in in the case of CPK.
Mr Price Group can implement the growth strategy to expand in the current market and gain a larger market share. This can be done by reallocating resources such as spreading out stores more to reach more customers instead of having many stores close together. This will ensure that more customers are able to reach a Mr Price store and purchase from them. They