INTERNATIONAL MARKET ANALYSIS REPORT

Woolworths Supermarkets

Woolworths Supermarkets

Introduction

The study relates to Woolworths Supermarkets, which is considered as the one of the leading supermarket in Australia. The study focuses on the expansion strategy the company to Japan as Japan is considered as the economically stable country in the current era; however, there are also some factors that can affect the expansion strategy, which are discussed in the later part of the study. For that reason, it is imperative and essential that through analysis of Japan should be consideration in relation to supermarkets industry and especially Woolworths Supermarkets.



Company Background

Woolworths Supermarkets is a subsidiary company of Woolworths Limited. The company is involved in the retail industry in Australia. The products of the company entails variety of goods that include biscuits, canned foods, spreads, cold and hot beverages; confectionery and snacks; oils, soup, frozen and dairy food, and rice etc. Moreover, the head quarter of Woolworths Supermarkets is in Bella Vista, Australia.

Method of International Expansion

The company intends to expand to the international market as there is scope for Woolworths Supermarkets in expansion strategy. In relation to this, supermarkets are considered as the going industry worldwide, for that reason, Woolworths Supermarkets should expand its business from Australia to Japan.

Many smaller companies from mature markets today choose to extend their activities to emerging markets. They do this to try to take advantage of the growth that the market is experiencing and increase their profitability (Bowman and Gatignon, 2010, 16-52). Often it happens that companies encounter problems when trying sell their products in emerging markets where the differences from mature markets are great, for that reason, Woolworths Supermarkets is intending to expand to Japan. The products companies are selling in mature markets are often more technologically advanced than those dominate in emerging markets and therefore see both supply and demand different (Carlsson, 2003, 7-41). Especially companies in their home market have focused on selling high quality products at a high price may have problems when they go into a growth market where price levels are lower (Brassington & Pettitt, 2003, 21-73). In this view, this problem is interesting to look as it can be applied to Woolworths Supermarkets Company that chooses to expand its operations into the Japanese market. Therefore, it is chosen to investigate how a Woolworths Supermarkets Company focusing on quality can be profitable in the Japanese market. In addition to this, in this study, both quantitative and qualitative research approaches are chosen with a deductive approach.

Background of the Country

Japanese history during the historical period marked by strong Chinese influences from the dominant high Asian culture; many revolutionary technological and cultural innovations imported from the mainland, often via Korea. Although Japanese people mentioned in Chinese sources as early as the 300's, so it is only of 600's, one finds written sources, written in Japan (Douglas & Craig, 1995, 63-95). One of the first sources is “The seventeen principles”, a sort of early constitution, signed by Prince Shotoku, who dictated the terms of his rule ...