Case study: Woolworths turnaround strategy 2007

Résumé du document

Woolworths Holdings Limited is a South African based retail group that operates locally and internationally through two subsidiaries, Woolworths (Pty) Ltd and Country Road Ltd. Stores are based in Africa, the Middle East, Australia, New Zealand, the United States of America, Europe, and Singapore. Woolworths in South Africa, was established in 1931 by Max Sonnenberg. Links with the UK based Marks and Spencer retail organisations were forged in 1947. Although M&S ultimately sold its shares in Woolworths, the two companies maintain close personal ties as well as a formal technology agreement. Woolworths offers a selected range of clothing, beauty products, home ware, food and financial services under its own brand name. The Woolworths' environment is distinct by 6 competitors: The Edcon Group, Truworths, Foschini, Mr. Price, Pep Stores and Ackermans. Direct competitors are Edcon, Truworths and Foschini, while the others are specialized in different target markets.

Extraits

[...] [17 February 2008]). Truworths has placed its target on the youth and those who aspire to wear attractive high fashion clothing and successful. They focus on characteristic but various styles with distinctive signatures (Truworths. Our business . [18 February 2008]). Truworths managed to know their young customers well who often choose to show their uniqueness in the clothes they wear, are very ‘brand- sensitive' and love to show that they can be compared with international standards. Truworths certainly hit right on! [...]

[...] Ensure value for money. The cross-shop plan. Affordable prices to the aspirant LSM 6-10 market. Focus on emerging markets. The beauty market has low market share ranges and can be used to expand their horizons. [...]

[...] Woolworths depends totally on the buyer's taste and preferences. It very important for them to have the right product mix for the target market. Potential new market entrants have much less power and might only become a stronger force if they offer a differentiation strategy in the same market segment. Suppliers normally have less power when the demand is high. When the competition is strong, it weakens the bargaining power suppliers. Although Woolworths supports SA suppliers, it can be cheaper to import from the East because of stronger rand, lower prizes and better quality. [...]

[...] [17 February 2008]. Business Wire. [online] Available from: http://findarticles.com/p/articles/mi_m0EIN/is_2007_June_11/ai_n19207086, [11 June 2007] Dawar, N.; Chattapadyay, A. “Rethinking Marketing Programs for Emerging Markets”.2002. Long Range Planning, 35.p. 457-75 Dutta, D Retail @ the speed of fashion”. [online] Available from: http://www.3isite.com/articles.htm [18 February 2008] Edcon “Strategy” [online]. Available from: http://www.edcon.co.za/Edcon/About+Edcon/strategy.htm [25 March 2007] Edcon. “Mango partners with retail giant Edcon and opens skies to more than 4.2 million account holders.” [online] Available from: http://www.edcon.co.za/LandingPages/PressReleases.aspx?ChannelExtra=edconpre ssreleases May 2007]. Foschini annual report 2005 Gilmour, C. [...]

[...] Maintain quality in your merchandise mix. Go heavy on service. Plan and control your inventory. Listen to your customers and keep an open mind. Cross market your products. Hire the right people and market your store. (Mendoza, M. [18 February 2007]). According to a survey, Woolworths knows how to build trust, better than any of its rivals. It seems that there exist a link between the general low trust ratings and the lack in trust of the higher business. (All Africa Online. [07 December 2004]). [...]