To adequately compete with Amazon and ensure that they do not take up too much market share, you have
been hired as an external consultant by Woolworths to provide a strategy on how they can prepare and
compete with Amazon appropriately. Provided below are several internal and external issues that Woolworths
are grappling with that need to be solved. These are outlined below:
• Worried shareholders: Shareholders are worried about Amazon’s rise as they see this as a threat to
Woolworth’s share price
• Poor online customer service: Woolworths customers have been complaining that when they try and order
their groceries online (website and mobile) they can’t sufficiently ask questions and engage with staff members
for advice and/or enquiries
• Social media ineptitude: Woolworths are worried that their social media interactions are insufficient and
unengaging and that consumers do not have any desire to interact with the brand
• Corporate staff insufficiently trained: The company has identified that not all their staff members are sure of
how the online grocery ordering system works. This also extends to payment to suppliers
• Price: Woolworths are unable to compete with Amazon on prices of particular products
• Website not so user-friendly: Amazon’s online ordering system is much more user-friendly than Woolworths
• Distribution: Woolworths has more effective distribution channels than Amazon already set-up in Australia but
feel that Amazon is starting to make strong moves in this space. Not only that, but costs for the different buying
channels for consumers is higher than simply operating online
• Supplier relationships: Some suppliers are willing to offer Amazon better terms than Woolworths
• Brand reputation: Woolworths has noticed that their reputation is decreasing, and Amazon’s is increasing
here in Australia
• Poor consumer loyalty: Consumer loyalty is difficult to establish in the FMCG market and while Woolworths
has a large market share, consumers don’t seem to be particularly loyal
As highlighted above, Woolworths have a number of worrying issues they need to deal with and that they see
as a threat from Amazon. To assist Woolworths, (you need to select 2 issues and develop innovative solutions
to dealing with these issues).
What will you be marked on? FOCUS IN THIS PART
• Two chosen issues and two solutions (one solution to one issue): Each solution is clearly and specifically
stated. The solution is logically linked to the problem and is innovative.
• Implementation and control: A thorough and specific implementation plan is clearly identified for every
• Digital business theory: There is a clear integration of relevant digital business theory in solutions (i.e.
• Sources of evidence: High-quality, credible, relevant sources to develop ideas that are appropriate for the
development of solutions.
• Writing style: Language is clear and expressive showing a strong writing style and without grammar,
punctuation, usage, and spelling errors.
What does your solution look like?
• Your solution needs to be innovative and draw on material and theory learned throughout the semester (e.g.,
we discuss the new consumer decision-making process… how can Woolworths use this?)
• Your solution needs to be a step-by-step implementation guide with control measures highlighted along the
process (control refers to different evaluative tools)
5/9/2021 Order 344667426
• You need to consider costs and timeline (include a realistic budget based on evidence and a timeline of key
• Who in Woolworths should be implementing your solution (their role only…not their name)? Consider if a new
role needs to be created, what would this look like?