Strategic Management of ASDA: Gaining Competitive Advantage in Retail Sectors

Strategic management
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
M. E. Porter value chain framework............................................................................................3
SWOT ANALYIS.......................................................................................................................6
Porter five forces..........................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Strategic management is a process that includes planning of set of actions, activities and
task need to be undertaken, monitoring and analysis outcome of its so that correct action can be
taken for growth and development of firm. In another words, management and seniors executives
have to set standard objectives, analysis internal and external environment and decide
appropriate strategies that would be beneficial for organisation. ASDA is supermarket retailers
that provide varieties of product and services ranging from home care, personal care to financial
services. It have use slogan “Save Money, Live better” in order to create awareness among
customers and promote brand image of enterprise. So, this report is all around strategic
management of ASDA and the way it have attained competitive advantages in retail sectors.
Several models, theories and concept have been used to understand and analysis strategic
management of firm.
M. E. Porter value chain framework
Company can differentiate itself from other competitors in market by designing
innovative method to market, manufacture and deliver products to end customers. As porter, firm
can enhance its overall profitability and market share by making best use of their capabilities and
strength. ASDA by focusing on its several activities or operation have delivered highly
qualitative products and services to wide range of customers. There are two activities that helped
in adding value to organisation such as “primary” and “secondary”. Therefore, porter value chain
framework is used to understand and evaluates the way company have gained competitive
advantages in retail sectors (Carayannis, 2018). Such as:
Primary activities: These are activities or action that helps in creating new products or services
that could contribute in satisfaction of customer’s requirements. It includes all function from
purchase of raw material to processing it into finished goods so that it can be delivered to end
users. ASDA have emphasis more on its primary activities so that best outcome can be yield in
minimum cost and time. Therefore, various primary activities that are performed by ASDA to
add value are illustrated below:
Inbound Logistic: It is process which illustrates the way raw materials are obtained from
suppliers so that they can be used for making finishing products. ASDA have strong reputation in
market so numbers of suppliers are interest to provide it raw material at lower cost so that they
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can earn profit. Company have also maintained good relationship with suppliers by making
timely payment thus it have contributed in getting qualitative resources at lower cost.
Operation: It is another primary stage that have added value to company and building brand
image in minds of number of people that are living in UK. Management of ASDA have clearly
define roles and responsibilities that need to be complete by specific individuals, set standard,
procedure about the way task need to be completed. Superior and line manager of firm
continuously monitor and evaluates performance of each and every individuals. Thus, find
alternative options that could be fruitful in increasing productivity and performance of
employees so that goals can be achieved (McMillan and Overall, 2016). Leaders of ASDA have
also put their best efforts or provide guidance, support and assistances to employees regarding
the way particular task can be completed. Thus, it has offer employees ease and comfort, reduce
amount of mistake, errors and they have make best utilisation of resources. ASDA have make
use of innovative technology such as computer, information technology to manage data,
information related to customers, actual sales of firm, inventory etc. Collection and preservation
of data have contributed management in taking timely and corrective decision so that maximum
outcome can be gained. Therefore, effective operation of several functions and key activities has
helped in brining economic of scale within organisation and achievements of end goals.
Outbound logistic: ASDA management have also taken crucial steps to effectively and
efficiently deliver products or services to end customers. It have number of warehouse with large
space, well equipped infrastructure, facilities where it is able to store raw material and finished
goods in order to deliver products in limited time frame. ASDA also have several stores or
supermarket in different location of UK and other countries thus customers can easily make
purchase while staying safe and secure at their home (Fitri and et.al., 2019). Strong supply chain,
distributional channel and network have helped in timely delivery of services to wide range of
customers that are living in society. With changes in trends and updation in technology, company
as also make use of digital platform to deliver products to customers. Such as people can easily
see or review different products or services it have and select best possible for them in order to
fulfil their expectancy. So, official websites and home deliver services have contributed in
growth and development of ASDA in retail sectors of United Kingdom.
Marketing and sales: It can be stated that marketing is one of the most important function that
helps in increasing number of customers or generating awareness of firm. ASDA marketing
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