ASDA Strategic Management: Concepts, Theories, and Analysis

This text is the table of contents and executive summary for a portfolio on the strategic management of ASDA. The portfolio aims to discuss strategic management concepts and theories in relation to ASDA and evaluate its strategic position and perspectives. The portfolio covers ASDA's strategic position, current strategic options, contemporary strategic management thinking, and critical self-reflection and progression. The portfolio uses various models such as SWOT analysis, TOWS matrix, Ansoff matrix, and SAF framework to analyze ASDA's strategic management. The portfolio concludes that market penetration is a suitable strategy for ASDA to move into international markets and gain a competitive advantage.

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PORTFOLIO
TOPIC: STRATEGIC MANAGEMENT
[Student Name]
[Student ID]

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Executive Summary
The main aim of this portfolio is to discuss the strategic management concepts and
theories that connect with the real organisation ASDA and reflect how ASDA generates and
evaluates its strategic position and perspectives. ASDA is the second-largest supermarket chain
in the UK, built in 1965 and entirely owned by Walmart, one of the world's largest companies.
Further, this portfolio covered strategic position, current strategic options, contemporary strategic
management thinking and critical self-reflection and progression to evaluate the ASDA strategic
management in depth and critically analyse its different perspectives in the light of concepts and
theories. The swot analysis gave a clear idea that the ASDA company opportunities have allowed
it to grow in Europe and access international opportunities, engage customers and expand its
business internationally. Further, the TWOSC analysis identified that spending significantly more
on marketing and advertising strategies is necessary for Asda to thrive by building on its existing
brand identity. Thus, market penetration is a suitable strategy for ASDA to move the company
into international markets, engage more customer’s worldwide, gain profit, and take a
competitive advantage in the international market.

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TABLE OF CONTENTS
Executive Summary.............................................................................................................2
Introduction..........................................................................................................................5
1. Strategic Position.......................................................................................................5
1.1 Analysis of Enteral and Competitive Environments..................................................5
1.1.1 Analysis of Internal Environment.......................................................................5
SWOT analysis............................................................................................................5
1.1.2 Analysis of Competitive Environment................................................................6
1.3. ASDA Financial and Stakeholder Analysis..........................................................8
1.2 Strategic Position and Strategic Capability...............................................................9
2. Current Strategic Options........................................................................................10
2.1 Identify Current Strategic Options with TOWS Matrix..........................................10
2.2 Analysis of Strategic Options with Ansoff Matrix...................................................11
2.3 Strategic Evaluation Options in SAF Framework...................................................12
2.4 Justification of Selected Option for Organisation....................................................12
3. Contemporary Strategic Management and Its Potential Impact on Organisation...13
4. Critical Self-Reflection and Progression.................................................................14
4.1 Introduction..............................................................................................................14
4.2 Gibbs Reflective Model...........................................................................................14
4.2.1 Description........................................................................................................14
4.2.2 Feelings.............................................................................................................14
4.2.3 Evaluation.........................................................................................................14
4.2.4 Analysis.............................................................................................................14
4.2.5 Action Plan........................................................................................................15
5. Conclusion...............................................................................................................15

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References..........................................................................................................................17
Appendixes........................................................................................................................24
1. PESTLE Analysis.................................................................................................24
2. Porter’s Five Forces.............................................................................................25
3. VRIO Analysis.....................................................................................................26
4. SWOT Analysis....................................................................................................26
5. Generic Strategies................................................................................................27
6. Ansoff Matrix.......................................................................................................27
7. Financial Analysis................................................................................................28

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Introduction
Strategic management is an ongoing analysis, planning and monitoring assessment in
which an organisation meets its needs in all strategic management requirements to achieve its
objectives and goals (Fuertes et al., 2020). Additionally, strategic management comprises five
basic strategies of an organisation that applies on mobile platforms and on-premise, and an
organisation can clearly understand its vision, mission, actions and values where accompany
wants to stand it. This portfolio aims to discuss the strategic management concepts and theories
that connect with the real organisation ASDA and reflect how ASDA generates and evaluates its
strategic position and perspectives. ASDA is the second-largest supermarket chain in the UK,
built in 1965 and owned by Walmart, one of the world's largest companies (Jones & Comfort,
2020). Therefore, this portfolio has four parts; strategic position, current strategic options,
contemporary strategic management thinking and critical self-reflection and progression to
evaluate the ASDA strategic management in depth and critically analyse its different perspectives
in the light of concepts and theories.
1. Strategic Position
1.1 Analysis of Enteral and Competitive Environments
An organisation points out its system that is constantly interacting in environments
(Hutchins, 2020). For gain a competitive advantage, it is imperious to analyse its internal
environment in a framework of SWOT analysis and then identify its competitive advantage that
is a task environment according to the Poster’s Five Forces model illustrates below.
1.1.1 Analysis of Internal Environment
SWOT analysis helps to identify the strengths, opportunities, threats and weaknesses of
ASDA's internal environment that leads to the company in the market.

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Strength
 The value of ASDA's brand is one of its
primary strengths. With 17% of the
market, it ranks second only to TESCO as
one of the major brands in the UK (Bandy
et al., 2021).
 Its distribution over the entire UK has
benefited the business in gaining
economies of scale (Haydock and Smith,
2019).
Weakness
 ASDA has a webpage, but it has not been
able to deliver quality online services
(Newing et al., 2022).
 Less range of products is offered at the
company's store. As there are many
locations that its businesses do not serve,
ASDA's retail locations are not well
considered (v Brierley, 2022).
Opportunities
 The corporation can expand more by
adding additional locations (Rossi-
Hansberg et al., 2021).
 ASDA has the chance to grow in Europe,
where it may access international
opportunities and clients (Leach, 2022).
Threats
 Local grocery stores, which are expanding
daily, pose a serious challenge to ASDA
(Fung et al., 2019).
 TESCO and Sainsbury are gaining on
ASDA's consumer base, as they carefully
grow across the UK (Urquhart et al.,
2022).
The above SWOT analysis shows ASDA's strengths, weaknesses, opportunities, and
weaknesses in the UK market. In line with that, the strength shows how ASDA performs in the
UK market. The analysis demonstrated that ASDA distribution across the UK has economic
advantages and stands second after TESCO in the UK market. Moreover, the weakness of ASDA
is that the company needs to improve its quality online services and a range of products only
offered in stores and many locations of ASDA are not well for business. Moreover, the above
SWOT analysis identifies the opportunities for ASDA Company that the company has availed a
chance to grow in Europe and access international opportunities, engage customers and expand
its business internationally. Therefore, some threats ASDA has faced include a serious challenge
of local grocery stores. Thus, Sainsbury and TESCO are big competitors of ASDA that have
successfully grown across the UK.
1.1.2 Analysis of Competitive Environment
Rivalry, buyer bargaining power, supplier bargaining power, the threat of new errant and
threats of substitutes are Porter’s five forces that can help to view an organisation's competitive
environment (Baxter, 2019).

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1.1.2.1 Rivalry
The quantity of businesses in an industry is one element that determines how fierce the
competition is because high competition results from a significant number of companies. After
all, each one must compete for market share (Bozic et al., 2019). In the UK, there were about
190,000 retail businesses in 2012 and this shows the signals of intense industry competition,
which means Asda will face tough competition. The market expansion rate is another element
that affects the level of competition. It is anticipated that growth in UK retail sales will decrease
from 2.30% in 2014 to 2.0 % in 2015 and decline to 1.60% in 2016 (Young et al., 2018). Slower
market growth suggests that companies in the sector must work harder to retain or increase sales.
Subsequently, the differentiation of high levels between the many retail companies intensifies
this rivalry, while the industry's high consolidation somehow dampens it. For example,
Sainsbury, Tesco, Morrison, and Asda control up to 74.10% of the retail market in the UK. Thus,
Asda faces significant levels of industry competition overall.
1.1.2.2 Threats of New Entrants
The retail sector in the UK is open and free to enter (Hilmola, 2018). Nevertheless, entry
for new enterprises is challenging because of the high-level consolidation of industries, brand
differentiation, and the substantial economies scale that arrange through the large retail firms.
However, as internet technology and e-commerce have become more widely used, entry into the
business has become simpler due to decreased capital requirements and improved access to
distribution channels. Despite the industry's slowdown, significant retailers have continued to use
price as a tool of competition. As a result, there is a genuine risk that new competitors will face
retribution based on price and the threat of new competitors presents as modest.
1.1.2.3 Threats of Substitution
There are no comparable products offered by competing retail establishments because
most UK retailers have robust online services. Even though the expansion of retail online
platforms has been hailed as posing possible substitutive risks for a retail industry where the
threat is considered low and weak.
1.1.2.4 Supplier Bargaining Power
There are a lot of suppliers in the UK retail market but they are dispersed. Because the
largest retail chains have enormous price advantages above suppliers of up to 11.0% due to their

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size, and as a result, they significantly influence the suppliers. Hence, this gives the impression
that the supplier's negotiating position could be more assertive.
1.1.2.5 Buyer Bargaining Power
Retail shoppers now have an easier time comparing costs and looking for deals because
of the growth of online shopping, giving them more leverage over merchants. But
simultaneously, the purchasers are numerous and dispersed, which limits their influence over the
sellers. Thus, buying power is moderate and low and Asda must generally be comfortable with
intense competition and few challenges from suppliers, potential competitors, and replacements
(Moazzam et al., 2018).
1.3. ASDA Financial and Stakeholder Analysis
Moura (2021) reported that an efficient stakeholder engagement model with five
components in the forms of Framework, Annual Review, Systems/Process Integration,
Communication, and Training and Implementation. This model is based on a balanced approach
to addressing stakeholders' interests with firms' goals and ethical and socio-economic strategy.
Figure: 1 1Source: (Moura et al., 2021)

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An organisation can adequately handle each stakeholder's concerns and interests by
implementing this strategy (Farmaki, 2018). For this case organisation, ASDA stakeholders at the
heart of its strategy are its employees, clients, suppliers, shareholders, the community, and the
government. Despite paying attention to recognising external or secondary stakeholders, this
shows that ASDA gives internal or main stakeholders more excellent credit than external or
secondary stakeholders. From the traditional stakeholder perspective of conducting a company,
acknowledging employees, customers, suppliers, shareholders, and the community is
exceptionally standard. Although the company recognises governments as stakeholders, this
recognition is insufficient when ASDA take into account the extensive list of secondary or
external stakeholders, which includes ordinary citizens, the media, partners in the venture, past
and future generations, rivals, non-governmental organisations, trade unions, and trade
associations. Subsequently, it seems like the organisation needs a consistent strategy for meeting
the interests of both primary and secondary stakeholders.
Furthermore, internal stakeholders are often addressed in accordance with how they
contribute to the organisation's financial performance (Rosati & Faria, 2019). However, ASDA
must look further than that a balanced approach to stakeholder interests must be taken.
According to Kujala et al. (2022), who bring attention to two prominent recent trends in the
literature of stakeholder engagement, ethical engagement is implied through explicit situational
communication that is ensured to be free of influence divergence and strategic motivations. In
light of this context, it is advised that ASDA adopt the Sinclair (2012) Stakeholder Engage
Model, which consists of five parts: a framework, an annual review, systems/process integration,
communication, training, and implementation. Depending on the urgency and expectations from
both the inside and outside, the organisation may concentrate on a particular component.
1.2 Strategic Position and Strategic Capability
Asda stores are amongst UK’s leading retail stores with an annual revenue of nearly £
24.98 billion as of the year 2022. Being amongst UK’s top five general merchandise and grocery
retailers, they are spread across entire Britain. A business corporation's strategic position may be
characterised as the decisions it makes to generate value for itself and gain an advantage over its
competitors. According to research by Dickens et al. (2020), it was discovered that Asda, in
particular, employs a type of pricing strategy that ensures its customers receive the most utility
and benefit for their money. This is how the company generates its high-profit margins. Rio et al

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(2019) claim that this company provides its clothing products through a state-wide network of
convenience stores and franchisees. Asda's increased market share, compared to that of rivals
like Sainsbury's and Tesco, is mostly the result of two of these strategic position tactics.
Additionally, it is crucial to evaluate both the internal and external business environments so that
Asda may make informed decisions.
According to research by Faitel et al. (2017), Asda will be able to draw in more
consumers and boost sales even more by analysing aspects that affect or influence its strategic
development and financial performance. These elements include sustainability and ethical
considerations. Numerous elements have been identified as having an impact on the strategic
planning of the goods or services offered by a corporate organisation. Employee performance
management, risk management, evidence-based analysis, engagement, equity, and data analytics
are a few examples among many others. Corporate governance, and policies adopted by
competing companies like Sainsbury's and ASDA, in addition to UK regulatory requirements,
are some of the internal variables that tend to influence Asda’s business operations. These
elements may be favourable or unfavourable. On the other hand, Wood et al. (2017) claimed that
internal factors like brand image, competitive pricing, skilled employees and highly mechanised
means of business operations can prove to have positive impacts on their business activities.
According to Hole et al. (2018)’s research, sustainability lowers expenses and therefore could
tend to impact operational earnings by up to 62 %. Becoming sustainable significantly even
boosts the overall levels of productivity, as evidenced by research by Lee et al. (2019) the fact
that found 23 % more productive capacity as well as 28 % better profitability among
collaborative organisations. Consequently, sustainability and ethical considerations on the other
hand are known to be two of the most integral components while assessing the extent to which
Asda can prove to become benefit from its strategic position within UK’s retail sector, while
already being the market leader.
2. Current Strategic Options
2.1 Identify Current Strategic Options with TOWS Matrix
The TOWS Analysis looks on internal issues inside a company organisation. A TOWS
analysis might be adapted from the traditional SWOT analysis, which analyses threats,
opportunities, weaknesses, and strengths as well. A TOWS research identifies a business

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organization's strengths, weaknesses, opportunities, and threats in a manner akin to the SWOT
paradigm (Helms & Nixon, 2020). The main critique of the SWOT analysis is that it fails to
explain the connections between various categories and components. For instance, some dangers
might greatly increase the significance of deficits. To identify relevant calculated choices that an
organisation may follow, TOWS analysis balances both internal and external elements. It assists
businesses in maximising opportunities from the outside, lowering external risks, addressing
internal issues, and improving their internalized strengths [ CITATION Teo19 \l 1033 ]. The
TOWS is a commonly used calculative forecasting instrument which remains to be exclusively
designed for strategic preparation.
Asda faces external pressures from a variety of rivals that have historically had firmly
established strong market positions. As a result, the business has to be vigilant at all times to
ensure that it is offering the greatest services to its customers. One advantage, according to
Bonzaghpa et al. (2021), is that they provide their customers with some of the cheapest and most
fair pricing, enabling a rising number of customers to get their daily food from them in light of
the rise in inflation levels in the UK. As a result, their consumer base will become stronger and
more devoted, greatly improving their brand's reputation. The fact that Asda must always invest
more time and money in staff training and skill development is one of its weaknesses.
Unfortunately, this results in considerable cost increases and noticeably decreased profit margins
and may be a sign of the firm providing exceptional customer service, which might increase
client happiness and attract additional individuals to deal with it. As for their internal advantages,
they are the top retailer in the UK and a market leader, which improves their brand image and
strategic positioning. Thus, without needing to spend significantly more on various marketing
and advertising strategies, Asda may thrive even more just by building on its existing brand
identity.
2.2 Analysis of Strategic Options with Ansoff Matrix
The Ansoff Matrix, nonetheless, is a framework used by many company administrations
to assess as well as their planned strategies for optimising futuristic development (Lorediana &
E., 2017). This helps businesses investigate a wide range of effects of various choices or
selections regarding how they develop a product within the context of more recent or current
markets, as well as which of those preferences will work best for them. The four main tactics that
tend to work here are product development, diversification, market penetration, and market

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development. Among the best approaches for Asda to effectively develop and uphold an ideal
and future strategy for the expansion of their corporate institute is via the use of Ansoff's matrix.
Market penetration is regarded as one of the grid's safest possibilities among all four techniques.
With the use of this strategy, Asda may increase the volume of sales of any existing product (s).
In addition to saving them a tonne of time, Dawes et al. (2018) claim that it also ensures the
business won't have to spend as much on research and development as they may have had to
when launching a new product to the market. With a little research and effort, individuals may
easily find solutions to strengthen the areas where they fall short. For instance, they may reduce
expenses, improve packaging, or even increase marketing as many customers would first be
unaware of their operation.
2.3 Strategic Evaluation Options in SAF Framework
ASDA will make new products in the UK market and produce home appliances such as
microwaves, cookers and all home appliances. In continuance, ASDA plans to expand its
products in markets of different countries, increase customers worldwide, and gain profit and
future development for business. Therefore, the market penetration of ASDA is a strategic option
that fulfils the requirements of SAF framework options; feasibility, accessibility and suitability,
are illustrated below (Vinayavekhin & Phaal, 2020).
Feasibility: Feasibility is the best time for making new strategies in which ASDA can move from
local markets to international markets, which will help ASDA introduce its products into new
markets.
Accessibility: Strategies can make acceptable for stakeholders of ASDA business because they
will help increase company revenues, decrease expenses and also help to save time.
Suitability: Market penetration is a suitable strategy for ASDA to move the company into
international markets, engage more customer’s worldwide, gain profit, and take a competitive
advantage in the international market.
2.4 Justification of Selected Option for Organisation
In light of the SAF framework and the selected market penetration from the Ansoff
matrix, ASDA decided on a certain strategy direction for the company's future development and
to decrease the challenges that the company faces after the pandemic (Iacovidou & Voulvoulis,
2018). Because the right strategy is a crucial task that provides value and viability to the
company, market penetration is a suitable strategy for ASDA, and market penetration is the best

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choice for the company. Regarding that, the managers of ASDA can increase their business
internationally by reducing the risk and consequences. Like expenses of unnecessary operations,
improving the packaging of products to decrease the risk of product quality and increasing
marketing to engage international customers. According to the SAF model, the market
penetration strategy will help to maintain the suitability, accessibility and feasibility of products
and increase revenue by introducing products internationally. Therefore, the market penetration
strategy is selected because it will help ASDA introduce its products internationally and take a
standing market position from the local market to the international market.
3. Contemporary Strategic Management and Its Potential Impact on
Organisation
Strategic management is important for every business because this gives an edge in a
highly competitive market. The most important part of strategic management is establishing and
understanding defined organisational goals. Additionally, setting short-term goals is a great
starting point because they serve as a direct model for achieving long-term ambitions. In addition
to acting directly on the performance of ASDA Company, strategic management ensures the
continuity of its development over the long term, where the major challenge can decrease the
sustainability of the company. Thus, the ASDA can face competition, market developments and
possible unforeseen events. Without the implementation of strategic management
implementation the ASDA can run several risks; over-investment, loss of cost control and,
therefore, bankruptcy, poor exploitation of the company's potential and therefore overtaking the
competition and lack of investment and therefore weakening of development potential in which a
proper strategic management plan like market penetration that found in the analysis of Ansoff
Matrix, ASDA can take market competitive advantageous and decrease the risk of over cost, cost
control loss and poor exploitation of ASDA company in the Uk. Therefore, strategic management
has become a significant part of the business world that supports companies in the rapidly
changing and uncertain environment of today's business.
Moreover, ASDA's operational managers can optimise resource management to meet the
objectives set by management. For efficiency, all employees must be informed of the company's
strategy. Therefore, internal communication of management decisions is essential to keep teams

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motivated and involved. This can be done through collective meetings, service meetings, briefing
notes, or e-mails. Besides these, operational management must always follow the company's
strategic decisions. And can create an imbalance between strategy and operation and lead to a
counterproductive situation. Therefore, in the context of globalisation and constant innovation,
ASDA's strategic management makes it possible to maintain a company in good health over
many years. In conjunction with operational management involves all employees, general
managers, middle managers and other employees to oversee the organisation's development.
Consequently, without a thoughtful strategy and certain managerial skills, it would be difficult
for ASDA to gain a competitive advantage in local and international markets.
4. Critical Self-Reflection and Progression
4.1 Introduction
Self-reflection is a process in which a person describes their self-reflection about
thoughts, behaviours, desires and attitudes of learning and observations in a deep understanding.
Self-reflection allows a person to analyse their life and learn from the micro to macro level. In
this context, I am describing my learning as a strategic manager throughout the strategic
management module under the Gibbs model of reflection.
4.2 Gibbs Reflective Model
4.2.1 Description
Priorities should be managed in standard and strategic project management. As a strategic
manager, I focused on educating a specific customer profile, and this customer strategy will
impact all aspects of my business operations, including project management teams. Therefore, a
strategic project manager should be aware of the following:
4.2.2 Feelings
Now, I have a clear strategy for decision-making, and it has become easier for me in light
of the strategic management process. Besides these, in an overall module, I was happy to learn
new management strategies that will help me as a strategic manager.
4.2.3 Evaluation
I needed clarification on strategic management and its perspectives when I started this
module. But, after completing this module, I am now capable of understanding strategic

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management in deep learning, and I have priorities in mind for how I can take decisions as a
leader or manager in my job. Therefore, this strategy and goals will help to fulfil my
responsibilities effectively.
4.2.4 Analysis
Strategic management has a clear message about the company's objectives. Therefore, the
overall business strategy must play a vital role when it comes to financial considerations for each
project. Most successful organisations rely on their project management offices to help with
strategic planning. Even if we are starting as project manager and don't have much say in
strategy, we need to educate ourselves and be ready when the time comes. And it will
undoubtedly happen.
4.2.5 Action Plan
In light of strategic management learning, my future action plans are below:
4.2.5.1Focus on Organisational Goals
People want to be recognised and respected for their efforts in any field, including project
management. I will seek personal fame and notoriety at the expense of corporate performance.
Keep a close eye on my business needs and resist the temptation to focus entirely on the
challenges and issues that concern me personally.
4.2.5.2 Review Strategic Progress
Some companies view strategy development as an annual brainstorming exercise,
devoting considerable energy and endless hours to producing strategic documents. Thus, I will
ensure that my project management team regularly assesses progress and revise the strategy as
needed. All our hard work could be wasted, and I will be Measuring the progress of my strategies
should be as simple as adding an item to the meeting agenda and fulfilling my responsibilities
effectively as a strategic manager.
5. Conclusion
This portfolio covered a deep insight into strategic management to give a brief
understanding of strategic management in the light of concepts, theories and models of areal
organisation. In this regard, the selected organisation is ASDA; ASDA is the second largest
supermarket chain in the UK; it that built in 1965 and is entirely owned by Walmart, one of the
world's largest companies. This report covered four important aspects of strategic management;

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strategic position, current strategic options, contemporary strategic management thinking and
critical self-reflection. Additionally, the above SWOT analysis shows ASDA's strengths,
weaknesses, opportunities, and weaknesses in the UK market. Rivalry, buyer bargaining power,
supplier bargaining power, the threat of new errant and threats of substitutes are Porter's five
forces that can help to view an organisation's competitive environment.
Furthermore, among the best approaches for ASDA to effectively develop and uphold an
ideal and future strategy for expanding their corporate institute is using Ansoff's matrix. Market
penetration is considered one of the grid's safest possibilities among all four techniques.
Therefore, the market penetration strategy is selected because it will help ASDA introduce its
products internationally and take a standing market position from the local market to the
international market. Thus, self-reflection is a process in which a person describes their self-
reflection about thoughts, behaviours, desires and attitudes of learning and observations in a deep
understanding. It allows a person to analyse their life and learn from the micro to macro level.

17
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Appendixes
1. PESTLE Analysis
Political Economic The political aspect
implemented by ASDA has helped in
exploring the areas which were not reached
before (Han et al., 2022). The UK's political unrest,
which caused the lobby's movement from one
leader to the next, can be viewed as
an adverse aspect of strategic
political decisions. Brexit in the UK has affected
consumer confidence (Hampson et al., 2021). The highly low rates of interest in the
UK have made the payments of
interest easier (Lusardi, 2019). There is a cause of fear among
customers in the UK which has
reduced the incomes of households. The growing GDP of the UK has
given benefits to ASDA (Xiao et al.,
2021). The decreased unemployment rate in
the UK has increased the number of
customers in ASDA.
Social Technological ASDA has long prospered from social
reform as a consequence of the
improvement of the economy of the
UK (Oberoi et al., 2019). The increased spending power of
people has also enhanced the profits of
ASDA. The surge of students has also
benefited ASDA's growth (Rababa et
al., 2021). By embracing leading technologies in
the UK, ASDA has been able to defeat
its rivals in the UK in a variety of
areas (Daniel et al., 2022). ASDA employs the technology in its
shops in the UK and supply has
decreased the number of service times
that the company needs. ASDA retains money available at all
times to deal with rapidly evolving
technological advancements in the UK
(Gielens et al., 2021).
Legal Environmental ASDA follows all
governmental laws of the UK, including those
relating to employment, labour, and consumer
protection (Walsh, 2020). Every part of ASDA
documentation, including career options,
audits, and finance, is covered by a legal
framework. The legal aspect of ASDA has
benefited the business in gaining a reputation
as the most ethical business (Fernandes et al.,
2021). ASDA has earned from
environmental aspects as one of the UK's
finest sustainably run productions (Ertem-
Eray, 2020). ASDA show considerable
investments in sustainability and CSR while
making efforts in the environmental factors. ASDA has initiated a tree-
planting programme for each product sale
(Ormond, 2020).

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2. Porter’s Five Forces
Porter Five Forces for Asda/ Retail Industry
Bargaining Power of Suppliers The suppliers have low impact
on prices, therefore suppliers have
weaker bargaining power. The suppliers do not offer a convincing
case regarding future integration into
the sector where ASDA operates
(Pérez-Mesa et al., 2021). • The business that ASDA engages in
comprises a major customer for its
suppliers. This shows a relation
between the suppliers' competence and
the evolution of the market
(Newborne, 2022).
Bargaining Power of Buyers There are considerably more
suppliers than manufacturers of
merchandise in the market where ASDA
trades. Consequently, customers may have
multiple alternatives (Gielens et al., 2021). The business has a
considerable level of
differentiation, customers cannot know
which other enterprises are providing a
particular product. The income of the buyers is
very low inside the industry. This reveals
that customers are in demand to purchase
goods at low prices, which enhances their
sale prices (Upamannyu et al., 2021).
Threat of Substitutes There are fewer products that
can be employed as a substitute for those
made by the company ASDA works for
because the threat of substitutes is weak
(Caraher and Furey, 2022). The maximum profit that
businesses can achieve in the sector where
ASDA engages is unlimited. Purchasers are less inclined
to move to substitute brands (Adelakun,
2020).
The Threat of New Entrants In the sector where ASDA
works, achieving economies of scale is a
challenge due to the low threat from new
entrants (Almughairy, 2021). It also increases the price of
production for new competitors. The industry of ASDA has
high capital demands, and it is challenging
for new entrants to launch enterprises
because significant expenses must be
invested (Omarini, 2022).
Industry Rivalry There are relatively few competitors in the market where ASDA competes
(Gore, 2021). • ASDA competes in a business that generates annual expansion and is
projected to continue growing in the future. The goods manufactured in the market where ASDA competes are very
different (Bandy et al., 2021).

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3. VRIO Analysis
Core
competencie
s
Valua
ble
Rare Inimi
table
Orga
nised
Adva
ntage
Bran
d image
Yes Yes Yes Yes Com
petitive
advantage
Innov
ation
Yes Yes Yes Yes Com
petitive
advantage
Custo
mer
experience
Yes Yes Yes Yes Com
petitive
advantage
Produ
ct range
Yes Yes Yes Yes Com
petitive
advantage
Mark
et position
Yes Yes Yes Yes Com
petitive
advantage
HRM Yes Yes Yes Yes Com
petitive
advantage
4. SWOT Analysis
Strength Weaknesses One of ASDA's major benefits is the
quality of its brand. One of the largest brands in the
UK, with 17% of the market, is only TESCO
which is ahead of it (Bandy et al., 2021). • The company has benefited from
its marketing over the entire UK by making cost
savings (Haydock and Smith, 2019). While having a website, ASDA is
not capable of providing reliable web services
(Newing et al., 2022). • The company's site carries a
restricted variety of products. The retail areas of
ASDA are not better thought out because several
places are not supplied by its business (v Brierley,
2022).
Opportunity Threats The corporation has the possibility
to expand more by adding additional locations
(Rossi-Hansberg et al., 2021). In Europe, in order to connect
global markets and customers, ASDA has the
ability to grow (Leach, 2022). As local stores grow daily, ASDA
meets a significant threat (Fung et al., 2019). TESCO and Sainsbury are gaining
on ASDA's consumer base, as they carefully grow
across the UK (Urquhart et al., 2022).

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5. Generic Strategies
Cost Leadership Differentiation Using a comprehensive value chain, the
fundamental objective of the ASDA plan is
to sustain market leadership (Zhai et al.,
2022). Serving the middle class, which comprises
a significant percentage of the overall
consumer market the most countries,
enables ASDA to grow its business. • ASDA puts a significant emphasis on the
cost and affordability of its products,
which leads to a strong marketing strategy,
rapid profit growth, and substantial
competitive gain / (Monte, 2021). By emphasising the
individual attributes of products,
differentiation as a main generic
approach empowers ASDA to develop its
consumer market (Ibrahim and Wang,
2019). By integrating innovation,
ASDA intends to distinguish itself from
its rivals and solve the customers'
escalating medical issues. ASDA delivers its goods
employing a standard differentiation
strategy in order to differentiate from its
opposition (Leach, 2022).
Focus Strategy Product Uniqueness • ASDA implements the focus
strategy to provide the highest value while
lowering expenses (Zissis et al., 2018). By satisfying a given market
platform's objectives at the most economical
pricing, the low-cost focus strategy is employed. To effectively serve the
expectations of its customers, ASDA improves its
marketing plan and makes modifications to the
packaging and marketing (Qi et al., 2022). From its foundation,
ASDA has been an expert in the
unification of channels and various
product lines (Henry et al., 2018). ASDA follows all
regulatory requirements for products or
services on listings for supermarkets,
clothing, and home accessories (Das Nair
and Landani, 2019). The product feature of
ASDA attracts customers and helps to
increase profits.
6. Ansoff Matrix
Market Penetration Market Development ASDA strives to expand
market penetration by showcasing its
existing offerings in its various markets
(Karami et al., 2020). The corporation wants to
improve its market share by extending its
operations. ASDA gains from special
deals that encourage buyers who seek to
make decisions (Ahmad et al., 2021). The fundamental marketing
of ASDA is to enhance its market share by
opening stores in new regions (Han et al.,
2022). The firm has the potential to
expand out of the UK into nearby European
nations, the USA and Asia. ASDA can develop an online
shopping service in order to expand its
reach (Haydock and Smith, 2019).

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Product Development Diversification In the marketplace for
product development, ASDA promotes its
different products (Beacom et al., 2022). ASDA also constantly
changes its stores, showrooms, and other
venues as a part of its strategy for product
development The product development of
ASDA helps in increasing its sales with
various marketing strategies including
advertising (Putri et al., 2022). ASDA has the potential
to greatly expand its market diversification
into new industries including electronics,
entertainment, and footwear (Yawson and
Yamoah, 2022). ASDA may also significantly
diversify by establishing its own supply
chain management to transfer commodities
from suppliers to retailers (Bernabei et al.,
2022). It may also develop its own
organic and other types of farming in order
to increase its supplies.
7. Financial Analysis
Strengths Weaknesses Revenue at ASDA Stores
Ltd. that does not contain fuel and VAT
improved by 0.6% to £20,409.4m over
£20,297.1m in December of the year 2021
(Retail Week, 2022). According to the
service sector's positive comparisons from
the following year, the loss in sales revenue
was slightly compensated by an increase in
garment and basic retail sales. ASDA and a limited number
of other stores confirmed to collaborate in a
market adjustment for dairy products in
2007. The consumers faced a significant
loss as a result of the valuation scheme
(Argyropoulou et al., 2022).

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