My aim is to analyse strategic planning process of Woolworths to analyse past seven years performance by using various strategic tools. Woolworth's performance has been variable over the past few years and in 2005 private equity group Apax made a takeover bid, which was rejected by the board, and four weeks later they received another offer and it made Woolies future uncertain in retail sector. Strategic planning is usually begins with external environmental analysis of the organisation. Competitors are the primary external consideration for strategic planning. For Woolworths Porter Five Forces (1979) can be used to analyse external environment. Woolworths failed to respond the threats of it competitors. They never made any strategy to build barrier for competitors such as ASDA, Tesco, Argos, Discount Stores etc. Its management always depend upon advertisement and customers' loyalty. Perfect competition brought more choices for customers and due to intense competition (Rivalry) in the industry, profit squeezed and market demand saturated. Woolworth's customers switched to its competitors. Woolworths faced huge problems with suppliers in last couple of year of trading and they forced to pay cash at the time of purchases because of lack of security.