Woolworths requires spending a huge amount of financial resources in order to carry out the business operations within the regulations. Consequently, it creates an adverse impact on the profitability of the business. The low profitable outcome in the business can lead the business towards the decreased market shares.

In the domestic market environment, Woolworths encounters challenges to retain a high level of business performance due to the declining GDP growth rate. Woolworths had to close its business operat ... ions in the UK during the major financial crisis. The inflation rate in Australia has also increased from 1.9% in July 2017 to 2.1% in July 2018 (Tradingeconomics.com, 2018). Due to the inclining inflation rate oolworths encounters challenges to retain a high level of business performance due to the declining GDP growth rate. Woolworths had to close its business operations in the UK during the major financia

The constantly changing social demand creates huge barriers for the company to attain its business objectives (Kennedy, 2016). Even though a large section of the people in society prefers staple food, the demand of the staple food is decreasing due to the fact that people are becoming health conscious. Woolworths encounters challenges to engage those people who are health conscious and like to avoid staple food.

With the implementation of advanced technology, Woolworths increases its business opportunities in the competitive market environment. Large-scale retailers use advanced and emerging technologies t ... o execute their major functions, such as promotion, performance management, feedback collection, and customer relationship management (Narayan & Chandra, 2015). The cost of technology has been mounting over o execute their major functions, such as promotion, performance management, feedback collection, and customer relationship management (Narayan & Chandra, 2015). The cost of technology has been mounting over the years, which appears to be a major concern for Woolworths since it largely affects the profitability of the business.