ADVANTAGES

To continue penetrate in the current markets, Woolworths must control the manufacturing costs and operating expenses, promote branding force, improve customer services, and enhance sales and marketing force. This strategy is suitable considering the great potential of growth in both Austrlia and exports to overseas such as Chinese markets. Retailing industry is a capital-intensive industry with a big proportion of fixed cost and a high marginal income so it is fit for low-price strategy. Woolworths can streamline the manufacturing and operating operations as well as improve the logic management to control the overall costs to develop a cost advantage over its competitors to attract more price-sensitive consumers. Branding can be achieved through extensive advertising campaigns and promotions.

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