Woolworths in Greece

Woolworths in Greece

Introduction

In the following paper strategic analysis is conducted for Woolworth's supermarkets. Woolworth's supermarkets are branded in the Australian markets as a retail chain for middle income and lower income consumer groups. Thus it is classified as a low-end retail chain. The basis for such classification stems from perception of the chain as having small sized and poorly equipped outlets. The only competitive advantage Woolworth's stores have enjoyed is its pricing. This is because of availability of the products as ordinary and cheap.

The main focus of the paper is to determine the strategic significance of Woolworth's taking a step to enter the markets in Greece. Greece is undergoing massive economic problems due to inability of the government to pay for interest and principles of its sovereign bonds. The resultant policy changes have thus addressed the issues with tightening fiscal budget including cutting on expenditure and raising taxes. These steps of austerity are especially crippling the middle and lower income groups of the country. These economic based classes thus witness declining spending purses and lower opportunities for jobs. These factors bring forth an ideal opportunity for Woolworth's to enter the markets. Its product line filled with bargain deals and low end consumer products could be an ideal fit for the economically strained populace of the country.

Following is a table illustrating the various products offered in the brand's supermarkets:

Product & service

Products

Services

Food

General Merchandise

Electrical goods

Clothing

Household goods

Home furnishings

Petrol

Online Sales Portal

Telecommunication Services

Financial services

Pharmacy services

Internet services

Industry Analysis: PESTEL Framework

Political Factors

The legislations in Greece regarding employment, promotes retailers to supply an array of jobs to the population. The business of the company is labor intensive and thus would provide job opportunities in the country. The legislative focus could be well met by Woolworth's by providing job opportunities to students, aged and disabled people along with low skilled working class (McTaggart, 2006).

Economic Factors

Most of the prevalent economic factors in Greece could be hard to deal with by Woolworth's. These factors would impose significant pressures to the costs of manufacturing, pricing of products and thus could lead to impacts in the bottom line. Furthermore, demand in the country could weaken due to rising costs that may be faced by Woolworth's in Greece.



Social and Cultural Factors

Consumers in Europe, including Greece are moving towards a culture of 'one-stop' and 'bulk' shopping. Woolworth with its expansive product line is perfectly suited to tend to this cultural shift in the developed world. Moreover, Woolworth's has concentrated in promoting its self-produced products. The increase in sale of such products offer bigger gains in the bottom line and the prevalent one-stop shop trend in Greece could significantly accentuate Woolworth's profitability.

Modern day consumers are well aware of healthy food products. Further, green products are coming in increasing demand globally including Greece. Woolworth has registered this consumer perception regarding products and has introduced organic foods, and greener products in its vast product line.

Woolworth facilitates cash, plastic and check payments from consumer for its sold products and is in line with the societal changes ...