Woolsworth Vs Amazon

Introduction

Woolworths is an Australian Supermarket Chain and grocery stores that is currently owned by Woolworth’s group. The company was founded in 1924. There is considered to be a duopoly of 80% of supermarkets in Australia and the two companies are Coles and Woolworth. The products that the company specializes in are groceries in which there are products like fruit, vegetables, packaged foods, and meat etc. They also sell products like magazines health products and DVDs (Woolworths, 2020). The current number of employees the company has is around 225000 while the revenue is 2019 was almost 60 billion Australian Dollars  (Woolworths, 2020). Fortunately, the company hasn’t been involved in any of the scandals except the current one in which it was accused of doing spam marketing to its consumers even though they said to unsubscribe from the services. The company has seen an enormous growth in this time period and it has some loyal customers  (Woolworths, 2020). 

There are some issue that it is facing due to the entrance of Amazon in Australia. When it comes to the consumer satisfaction online, Amazon is at the top of the list while Woolworths is at the bottom. This is one of the main reason that online consumers are shifting towards better option like Foodland also. In this report, there is going to be a discussion on two of the major issues Woolworths is facing when it comes to selling online and creating an online presence (Van Kampen & Kirkham, 2020).

Issue 1: Inefficient Online presence

The first major issue with the strategies of Woolworths is that their online presence is not up to the par and there is a need for them to engage with the customers a little more (ABC News, 2018). Online presence especially the presence on Social Media is considered to be one of the leading factors that the organizations become successful. These factors play an important role in creating a perception in the minds of the consumers. There is also influence marketing which is paving its way into the Australian market (Canstar, 2019). Companies like Amazon are using influencers to market their products and this is why the online share of Woolworths is getting lower each day. Woolworths is nothing in terms of their online presence and this needs to be changed with sustainable and better solutions.

Solution 

The solution that is going to be provided needs to be a sustainable solution that is going to work for a longer periods of time. The best solution would be to hire digital marketers who have graduated from the top level universities and give them the job of managing the digital presence of the company. These people would start a public campaign to make a positive image of the organization for suppliers as well as the customers.