woolworths presentation updated (2)

Woolworths Strategic Expansion Plan

Samukele Ncube, Lara Youssef, Adil Munim, Jenna Shore, Elise Vandenhof, Veronica Eberhardt

Company Home Country Foreign Market Analysis Strategic Plan

Woolworths Holdings Limited■ Holding Company in Cape Town, SA

■ 43,000 Employees

■ Three Operating Firms

■ Strategic Objectives:– Customer Relationships– Connected Retail– Synergies & Efficiencies– ‘Good Business Journey’

Source: (Woolworths Holdings Limited, 2016a)


2014 2015 201610

10.5

11

11.5

12

12.5

13

13.5

14

C&GM Revenues (Billion Rand) Source: (Woolworths Holdings Limited, 2016b)

Clothing & General Merchandise ■ Apparel, Housewares, Accessories, Beauty Products

■ 285 Stores in Sub-Saharan Africa

■ Most Products Produced Locally

■ Customer-Focused Strategy

■ Financial Performance– Operating Profit Margin: 16.8%– 45% of all Woolworths’ Sales Revenues


Strengths and WeaknessesStrengths• Commitment to Customers

• WRewards• Detailed Market Research

• Commitment to Sustainable Practices• Reducing Waste• Fair Hiring Process• Ethically-Sourced Products

• Strong Financial Performance

Weaknesses• Current Operations Only in Africa• Several Subsidiaries

• Challenge for International Expansion

• Limited Distribution Capabilities• Ground Vehicles to Serve

Markets in Africa


Electricity Issues due to DemandStrong Internet and Telecommunications

South Africa: PESTLEDP

E

S

T

Corruption Issues in Government

Slow GrowthMember of SADC

Low Consumer Confidence


South Africa: PESTLEDL

E

D

‘Mixed’ Legal System

Improving Environmental Sustainability

Roughly Equal Female/Male NumbersMajority of Population is Black African


Canada: PESTLEDP

E

S

Focus on Increasing FDI No Trade Agreements with South Africa

Lower Consumer SpendingAdvanced Infrastructure and Institutions

Trends in Apparel Industry • Athleisure and ‘Fast’ Fashion

Social Media is Prominent for Business


Canada: PESTLEDT

L

E

D

Popularity of Online Shopping

Two Languages and Two TraditionsDouble Taxation Agreement

Only G8 Country to Not Meet Environmental Goals

Majority of Population between 55-69Younger Workforce Expected

http://cdn.gearpatrol.com/wp-content/uploads/2015/08/Athleisure-Gear-Patrol-Lead.jpg


Porter’s Five ForcesThreat of New Entrants

Threat of Substitutes

Bargaining Power of SuppliersBargaining Power of Buyers

Industry Competition

012345


CAGE AnalysisCultural Administrative Geographic Economic• Share a Common

Official Language• Similar Practiced

Religion• Contrasting

Cultural Norms

• Common History Creates Similar Policies

• Established Double Taxation

• No Trade Agreements

• Disparity in Levels of Corruption

• No Common Border

• Opposite Climate • Canada:

Moderate to Cold Climate

• South Africa: Hot and Dry Climate

• South Africa Accounts for 0.36% of World GDP

• Canada Accounts for 1.97% of World GDP

• Income Inequality Within South Africa


Strategic PlanMarket ResearchFind Distributors

1-6 Months

Research for Woolworths Food

36-48 MonthsMarketing Campaign

Flagship Store TorontoLaunch Online

Platform

6-12 Months

Stores in Montreal and Vancouver

12-24 Months Stores in Ottawa, Edmonton, and

Niagara

24-36 Months

X X X X

Thank you, Any Questions?