Asda Strategic Management

Asda Strategic Management

Submitted by xiaozuo323 on April 17, 2009

• Category: Business and Economics

• Words: 3230 | Pages: 13

• Views: 291

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Contents

1.0 Introduction 2

2.0 Markets Environment Analysis 2

2.1 Porter’s Five Forces 3

2.2PESTEL 4

3.0 Company Strategic Analysis 6

3.1The Value Chain 6

3.2Sustainable Competitive Advantage 10

3.3Strategic Direction 10

3.4Summary of Strengths and Weakness Analysis 11

4.0 REFERENCE 12

6.0 APPENDICES 15

1.0 INTRODUCTION

ASDA stores LTD The present ASDA Stores Limited was founded as Associated Dairies & Farm Stores Ltd in 1949 and became part of the Wal-Mart family in 1999. It is the second largest food retail industry in the UK. It has 321 stores in the UK and 148,000 colleagues. ASDA offer Britain’s best value weekly shop with prices on average 10% lower than its main competitors and mix of fresh food, grocery, clothing, home, leisure, and entertainment goods.

In recent years, ASDA also focused on to be Britain’s best retailer and supply customer needs always. Its purpose is stated as 'To make goods and services more affordable for everyone'. So it increased more retail services, such as clothing and jeweler. It created the unique clothing brand George, ASDA plans to achieve annual sales to 500 million pounds in 2011, and become the largest clothing store in Britain. In 2001 ASDA opens its first jeweler department at Harwich-now in most stores after a rapid roll-out. Apart from the traditional retail shops, ASDA launched its online retailer service in 1998 (http://www.asda.co.uk/corp/home.html). As yet, 19% British net citizen want to shop at ASDA.com

Task A

2.0 Markets Environment Analysis

2.1 Porter’s Five Forces

2.1.1 The threat of Entry

The threat of entry retail industry like supermarket is low because of supermarket is very high cost to open; you can not be believed to open a supermarket by a little investment. Therefore, barriers of entry are very high. However, many competitors would like to occupy market shares, but ASDA is under investigation by the monopolies