Competitor Analysis Of ASDA & Marks & Spencer | Strategic Management Report
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Added on 2020-02-14
Competitor Analysis Of ASDA & Marks & Spencer | Strategic Management Report
Added on 2020-02-14
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STRATEGICMANAGEMENT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Comparison of the strategic choices of each company and its implication on competitiveadvantage.....................................................................................................................................1SWOT Analysis of M&S.............................................................................................................3Swot analysis of ASDA...............................................................................................................4BCG Matrix for ASDA................................................................................................................5How the strategic choices supports the companies in meeting their vision, mission andobjectives.....................................................................................................................................6CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTION In order to attain competitive advantage, it is essential for companies to develop betterstrategies. With the help of this, they are able to build positive brand identity in the mind ofcustomers and enhance their sales margin as well (Freeman, 2010). In this regard, the presentstudy is taken into consideration where two firms related to the retail industry are being analysed.For the same, two companies i.e. ASDA supermarket and Marks & Spencer (M&S) are takeninto consideration. By using different tools, models and other form of analysis, strategic choicesof both the organizations are compared. Further, this research presents a clear comparison between the strategic choices of boththe firms as well as implications of these choices for their respective competitive advantage.Portfolio analysis can be defined as a systematic way through which company can analyse itsproducts and services and make up their association business portfolio (Larsen, Tonge andLewis, 2007). This is the best way through which management can evaluate each of theorganization's businesses individually and allocate resources for each. Comparison of the strategic choices of each company and its implication on competitiveadvantage ASDA is an American owned British supermarket which offers a variety of products suchas financial services, groceries, women clothing, mobile phone etc. On contrast, Marks andSpencer is also a British multinational retailer which specializes in selling luxury food as well asclothing and home products (Dess and Gregory 2005). Nowadays, each and every organization that serves their business operations into globalmarket faces several issues. These issues can be analysed by the way of developing theirstrategic portfolio with the help of using different tools and models. In this regard, some majorissues faced by both the companies in this competitive advantage can be analysed by usingPorter’s five force model and SWOT analysis technique (Poon, 2008). By this, company relatesthem effectively with external environment and tries to overcome with the present and existingissues faced by them. This model helps them in better attainment of their goals and objectivesand enhances their respective competitive advantage. Porter’s five force model of Marks and Spencer’s and ASDA1
Threat of substitute: M&S is the largest retailer of UK and in general, there are nosubstitutes of food and clothes due to which threat of substitute for this company is low.However, there are some of the direct rivals in the food market as well as apparel industry suchas Waitrose, John Lewis etc. On the other hand, ASDA is a famous retail industry which alsoplays as a competitor of M&S. However, ASDA usually introduces cheaper alternatives due towhich high threat of substitutes (Porter, 2008). This clearly compares the level of threat amongboth the retailers. Threat of new entrants: Retail industry requires huge investment to set up any retailorganization within any country. It includes different sections related to the clothing, food andproducts, home accessories etc. Due to this, threat of new entrant for M&S is low as per therequirement of enormous capital investment. It is the only source through which successful chainof stores can be easily established. In today’s dynamic and competitive industry, new entrant2Threat of substitue Threat of new entrants Bargaining power of CustomersBargaining power of buyersIndustry Rivarly
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