Joe Ranieri Student ID 110055813
Assignment 1 Analysis of Woolworths Limited through Porters Five Forces model
Woolworths limited is a major player in the Australian Retail industry enjoying a dominant position in the major sector of retail - groceries. According to the Company history www.woolworthslimited.com.au the company has grown from a small, one store operator in 1924 to a self service chain in 1955, moving into food retailing in 1957 and liquor retailing in 1960. It began marketing its “own brand” products in its grocery stores in 1973 and opened up its discount department store Big W in 1976. The company pursued a course of expansion when in 1981 the company acquired the Dick Smith stores and by 1996 had converted them to Dick Smith Powerhouse Stores. In 1985 they acquired the Australian Safeway stores and in 1987 embarked on their campaign to establish a point of differentiation from other grocery retailers in the market, the Fresh Food People campaign.
Even though the company was expanding its operations it’s profit performance was poor. This resulted in a buy-out of the company by Industrial Equities Limited (IEL) in 1989 and its shares were de-listed. The new owners went about turning the company’s fortunes around and continued with its strategy of expansion. In 1993 the company was relisted on the stock exchange. The Liquor division was expanded when they signed a marketing agreement with Dan Murphy in 1998 and established BWS in 2001. They acquired Tandy Electronics in 2001 to complement their investment in Dick Smith stores. In 2004 they significantly expanded its liquor and hotel operations when they acquired Australian Leisure and Hospitality Limited (AHL) and in 2005 they acquired from Foodland Limited their New Zealand supermarket Business. In 2006 they entered into a joint venture with Tata in India to establish the Croma chain of multi-brand outlets and in 2008 they launched their financial services brand...