or, services and raw materials can be a power source over the firm when the substitutes are few and charge high prices for some resources (Porter, 2008). Woolworths is affected by this force. Even if there are plans for expansion and opening of new stores for convenience to consumers, there is marginal pressure attributed to high prices in the real estate, thus the opening of more stores is restricted (MBASkool, 2013).
Competitive Rivalry Intensity
The competitive rivalry intensity majorly determines the industry’s competitiveness (Porter, 2008). This can be the transparency degree, number of firms and innovation for sustainable competitive advantage. Woolworths faces competition from other rival companies with the major competitors being 3D discount, Walmart, Prange Way and J.M. Fields (MBASkool, 2013). This pushes the company to be more innovative and bring new products and modify the existing ones to always attract new customers and retain existing ones.
Internal Environment Analysis
Woolworths is a strong, family oriented and down to earth company with a responsible and hard-working culture and ethical values. The company strives for openness, honesty, fairness and transparency in all of its operations. The customers are put at the heart of decision making and business as a whole. The suppliers are valued and receive fair treatment, and there is respect for the community it serves (Woolworths, 2012). Consequently, there are 190,000 members of staff and 6,500 members in the company’s ‘25 year club’.
The company has a board of directors who act on shareholders’ behalf in company supervision and the maintenance of good corporate governance. They oversee and appraise the strategies, policies and performance of the organisation. Management operations and decisions across brands of the company are under the responsibility of the management board (Woolworths, 2012). The employees work well, but their performance could be improved by enforcing strategies for...