Digitization and Woolworths

Question: Discuss about theDigitization and Woolworths. Answer: Introduction: Woolworths Limited is an Australian public company operating in the retail industry. It was founded in the year 1924. The organization serves in Australia, New Zealand, and India. The organization has its name in the list of top twenty large retail organizations. The organization has created job opportunities where more than 202,000 people are employed. The organization is operating for nearly a century, which was possible due to the quick adaptation of the organization to new technologies (Cameron et al., 2015). It has made the organization sustainable. The purpose of this report is to find out the goals and objectives of the organization, and the ways those goals and objectives strategically align with the new technology adopted by the organization. The tools that are used by Woolworths to understand the competitive environment are critically examined here. It also analyzes the threats the organization faces in the competitive market it is operating in due to the complex and dynami c technological environment. Goals and Objectives of Woolworths: The basic goals and objectives of Woolworths for the online and store-base sales are same which are maximizing the sales, reaching to more customers, and others. There are some differences in the goals as well. The approaches towards those goals are also different in nature. The objectives for the store base sales include building a client and store led culture in the market. It helps the organization to serve the consumer needs more effectively. It also includes adding value to the products sold in stores. According to Akbar, and Ahsan (2014), it empowers the customers with more satisfaction from utilizing the products offered by Woolworths. On the other hand, the online sales incorporate generating sustainable sales momentum as an objective. In the views of Santos, Svensson and Padin (2014), it will help the organization to create a long term rapport with the customers; it will also ensure that the sales amount will not fall even though the market dynamic changes. The online sales also include hassle free end-to-end service providing as a goal. It will help Woolworths to minimize cost by increasing efficiency in the service. In turn, it will increase the profit margin for the organization. Tools Woolworths Use to Snalyze the Market: To analyse and understand the competitive environment, Woolworths use the PEST analysis as given below: Political factors: The Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) helps the organization to sale simultaneously to both the countries markets. Due to the political stability in both the countries, the organization and its shareholders operate safely. Economic factors: The standard of living in Australia and New Zealand is high. Per capita income of Australia and New Zealand are $42,450 and $30,750, respectively. It shows that both the economies are sound. Socio-cultural factors: The customers residing in Australia and New Zealand have a healthy culture and thus demand organic and healthy products. The sustainability strategy of the organization ensures that the quality demands of the customers are met. It also ensures environment friendly strategies from Woolworths (Devin Richards, 2016). Technological factors: The innovations regarding information and communication technology has increased its efficiency. The technological innovations add values to the services Woolworths provide. The service oriented architecture software used by the company reduces cost and helps the customers as well (Goodridge et al., 2014). These factors help Woolworths to understand where it stands in the market and how it can move to a better position, ahead of its competitors. Strategic Alignment: The role of strategic alignment between goals and objectives and the technology that facilitates the achievement of the objectives stated above are crucial for the organization. It ensures that the strategies implemented by the organization bring success to Woolworths. For example, the sustainability strategy of the organization aligns perfectly with the goal of generating sustainable sales momentum both online and store-based sales. To improve the alignment the organization can use a better communication system. The organization can use advanced technology for this purpose. It can take help from the convergence of big data, cloud computing, social, mobile, and other technologies. It will help in serving the organizations objective and goals. Following the views given by Parsons and Wilkinson (2015), it can be stated that, it will also increase the effectiveness of the strategies and thus serve the purpose of those in meeting the goals and objectives for different sales options. It w ill also help the organization in keeping track o the strategies and their effectiveness. Benefits of Data Management: According the ideas given by Xiaofeng and Xiang (2013), the benefits of data management are huge and can help Woolworths in serving the customers better. It helps in keeping the data secured. Important data will not be lost even if the servers overload. It will also provide security for the details of the customers. Data management will help in citations. The organization can use this data for future references and experiments. It will grip Woolworths a better grip on the market. Following the views of Galloway, Loewen and Vrbsky (2015), it can be said that, data management will help the organization in understanding the effects of their product changes on the customers. This way it will also help Woolworths in creating strategies for future. Proper data management will best reflect the gaps between the expectations of the customers and the performance of the organization. It will provide assistance to both the understandings of the micro and macro environment of the market. Data man agement also will help the organization to observe the effects of investment. Importance of Adopting Web2 and Web3 Technologies: Web is a network of complex system of interconnected servers, supporting formatted documents. In 2006, web2 was introduced which overcame the limitations in web1. Web2 helps in both reading contents online and contribute as well. As stated by Frederick, Hawryszkiewycz and Kang (2014), it can be said that, this technology links process, people, and technology with its advanced features. It has brought tremendous opportunities for e-commerce. For example, there are many companies like Amazon.com, which has no brick and wall stores but operates online. According to the ideas given by Zhu et al. (2014), it has led to a digital environment where it is easy to share information due to the low cost and easy availability of the required products. Web2 provides the opportunity of having a conversation online without even being at the same place, and more importantly at very low cost. Web3, released in 2016, has turned the web into a database. According to Zhang, Li and Zhang (2015), it helps the people in identifying their choice products online and shares the information the way they want. Adopting web2 and web3 technologies will help the organization in having a direct conversation with the customers at a very low cost. It will also help to know their preferences and demand. Fulfilling the customers requirements will become easier. Threats Woolworths Face: The threats the organization can face due to this complex and dynamic environment are huge. Customer satisfaction is presently every organizations primary target. Everyone can see the preferences of the customers and hence can produce accordingly such that the products meet every requirement of the customers. This way, the products that are deviating from the requirements even slightly will not face demand in the market. According to Nath, Dhar and Basishtha (2014), this technological environment also helps the customers in complaint lodging and reviewing the organizations. An unhappy customer thus can hurt the reputation of the organization. Hence, the goals of the organization have to be changed accordingly to the customer preferences. There are other threats that this technological environment possesses. It promotes a tremendous competitive environment. A firm thus requires to perform at its best otherwise it will lose its market share. Woolworths requires analyzing each of these potential threats in order to survive in the market. Conclusion: In conclusion, it can be said that Woolworths is a huge organization operating in the retail industry of Australia, New Zealand, and India. The organization is currently having a good rapport with the customers, but the recent technological changes have created a competitive environment for the organizations operating in this sector. Now, the customers have more power as they can express their feelings regarding products in front of the whole world online. Any bad review from the customers will hurt the reputation of the organizations like Woolworths. The strategies of the organization have so far aligned with the objectives and goals of Woolworths. To keep the sustainability in the market, the organization uses PEST analysis, which shows presently, Woolworths customer base is well incorporated in the organizations strategies and the customers appreciate it. The organization has the ability to take the advantage of data management and technological innovations to grab a better share of the market. Introduction of web2 and web3 has the potential of creating a guideline for Woolworths which will help the organization in addressing the customers in a more careful and detailed manner. Recommendations: Use data management to address the threats that come in the dynamic technological environment. Adopt web2 and web3 technologies to connect with the customers more efficiently. Create strategies following the data management results. References: Akbar, S., Ahsan, K. (2014). 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