Woolworths – During Tough Times - Case Study

In: Business and Management

Submitted By splined
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1. By dropping prices and increasing product range, is Woolworths diluting its value proposition?

Woolworths is not diluting its value proposition by dropping prices as they still intend to deliver good quality products, superior packaging and excellent customer relations. They still intend to deliver on that promise and ensure that the consumer prefers its products and services above their competitors in the long run, thus maintaining the key to a sustainable competitive advantage (Hough, 2011).

In the case study the divisional director for foods, Mr Julian Novack, mentions that because they carry a large portion of own-brand products, they are able to exert greater control over the prices by optimising the production process and reduce the input costs. Woolworths consulted with its suppliers to find ways to reduce pricing on their products and reviewed its entire supply chain, reducing unnecessary packaging, improving their logistics and also keeping an eye on price of commodities such as wheat. By making effective changes in their value chain Woolworths is able to increase the value delivered to their…...

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