ASDA Individual Report: A Comprehensive Analysis of the UK's Third Largest Retailer

ASDA INDIVIDUAL REPORT

Table of Contents
INTRODUCTION............................................................................................................................. 3
EXTERNAL ANALYSIS...................................................................................................................... 5
PESTLE ANALYSIS OF ASDA........................................................................................................ 5
COMPETITOR ANALYSIS.................................................................................................................8
PORTER’S FIVE FORCES ANALYSIS..............................................................................................8
SPICC ANALYSIS..........................................................................................................................9
INTERNAL ANALYSIS.....................................................................................................................10
VALUE CHAIN ANALYSIS OF ASDA............................................................................................10
MARKETING MIX OF ASDA.......................................................................................................12
SWOT ANALYSIS...........................................................................................................................15
CONCLUSION............................................................................................................................... 17
REFERENCES.................................................................................................................................18
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INTRODUCTION
The current report is prepared with an aim to analyse the current market position of ASDA
which is one of the largest retail company in the UK. In last financial year, the company has
experienced falling sales in all quarters and was not able to stand its ground against top three
retail companies of the UK- Tesco, Sainsbury and Morison. The current report will analyse the
internal strength and weaknesses and the current market position of The Company in
comparison with its rival companies. The report will also highlight the external factors such as
political, economic and environmental policies of the UK government and the impact of these
policies on the working of the company. The competitive environment of the company will be
analysed with the help of Porter's five forces model which analyses the influence of the
competitive rivalry, suppliers and customers on the profitability of ASDA.
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ASDA OVERVIEW
ASDA is a retail company which is headquartered at West Yorkshire England. It is the third
largest retail company in the UK, behind Tesco and Sainsbury. The company was founded in
1949 and at present offers a wide variety of groceries and general Merchandise through its 642
stores. The company has employee strength of 160,000 and in 1999 it became a part of Wal-
Mart groups. The company has also entered in the clothing market with a brand name ‘George’.
The company has registered slow growth in last few quarters and is planning to analyse the
current situation of the company so that it can retain its customer base (ASDA, 2018).
Figure 1 : ASDA Logo
VISION
“The vision of the ASDA group is to provide value to the money of the customers by delivering
the right product at right time.”
MISSION
To become the best retail company in the UK and being able the offer goods and services at
affordable prices to the customers. To meet the everyday needs of the people, and help them
get more out of life.
PROBLEM STATEMENT
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‘‘ASDA has suffered falling sales since 11 consecutive quarters. During this period, the sale
declined by 7.5 and the number of customers visiting the store reduced by 2 present. The
company needs to analyse the current position of the company and find a way to regain its lost
market share’’
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EXTERNAL ANALYSIS
PESTLE ANALYSIS OF ASDA
The PESTLE analysis of ASDA is helpful in effectively assessing the macro environment of the
business. There are six elements on which the framework of the PESTLE analysis relied on such
as political, economic, social, technological, legal, and economic. The analysis has been
explained in detail as follows:
https://www.howandwhat.net/pestel-analysis-of-asda/
ELEMENTS INFLUENCE IMPACT
POLITICAL The national, international, and
the EU regulations possess a
huge impact on the consumer
rights, employment, taxes, etc.
++
The decision-making might be
impacted by the instability and
war
-
ECONOMIC The economic factors like credit
cost, labour supply & demand,
pay level, competitive
pressures possessed influence
on the company’s pricing
strategy
-
SOCIAL Celebrity following, healthy
lifestyle, and ageing population
is essential for business
development
++
Providing required products as
per the social needs
++
TECHNOLOGICAL Click & collect delivery of the
products through mobile apps
+++
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