Strategic Management: ASDA's Strategies for Market Share Retention

Strategic Management

Table of Content
INTRODUCTION...........................................................................................................................1
Pestle Analysis.............................................................................................................................1
SWOT ANALYSIS ....................................................................................................................3
McKinsey 7S Model ...................................................................................................................4
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management involves various activities such as effective evaluation of external
market condition, availability of resources or activities that are essential for achievement of
company objectives. Companies plans in advance different strategies in order to gain competitive
advantages and enhance their profitability by meeting needs of customers. ASDA is British
market supermarket retailer that was established on 19 February 1949 that offers various
products and services such as home care products, clothes and financial services. The report has
compared theory and practice approached for effective understanding of strategies management
that is used by ASDA to retain its market share. It has also explained about the way strategies
management of ASDA has helped in brining changes or modification in the organization.
Various models and theories are used to explain the way ASDA have managed different changes
to earn maximum profit margin and sales volume.
Pestle Analysis
It is model that used to analysis internal and external factors that impact on overall
performance and productivity of organization. Pestle analysis is most common tool that is used
by every organization to analysis various external changes so that appropriate measures can be
taken within limited time and cost (David and David, 2017). ASDA have also used this model to
formulate effective strategies so that company can earn more profitability and market share.
Therefore, Pestle Analysis of ASDA can be illustrated as follows:
Political Factors: Government policies and procedure keeps on changing as per different
situation and condition therefore such policies impact on the way company will operate its
particular market condition. Brexit is one of the major policies that is made by government of
UK which has adversely impacted on sales volume and profitability of large organization as
import and export have been decreased. But ASDA through offering qualitative products at
reasonable rates is able to attract maximum number of individual that resides in UK. Free trade
regulation has also provides opportunities to ASDA to expand its operations worldwide by
effectively meeting needs of diverse individual that live across worldwide. Therefore, ASDA
through changing its strategies as per external environment situation or policies of government is
able to retain its market share.
Economic Factors: It is another factors that influence or impact on firm operations that is
economic condition of specific country. Marketing manager of ASDA before entering into new
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market it effectively evaluates unemployment rate, disposable income of people or education
level and interest rates in order to plan definite strategies to cope up with external changes for
long term growth and sustainability of organization (Berisha Qehaja, Kutllovci and Shiroka Pula,
2017). There is high level of unemployment rate, interest rate and decrease in purchasing power
of customer’s. Therefore, ASDA in order to retain its market share have planned strategies to
offer products at high discounts so that they can be influenced to make purchased of ASDA
products and services over other competitors.
Social Factor: People preference and demand keeps on changing as innovation of new
technologies or launch of new products or recent trends in the market so companies need to
identify customer’s needs for effective operations of business. Most of the people across UK and
worldwide likes to make purchasing while staying at their home as its provide convenience and
comfort to people thus satisfy their needs effectively. ASDA through framing strategies to
increase its presence in social sites or its official websites have influenced maximum individual
and enhanced its profitability. ASDA marketing manager by identifying needs of people that
they are less likely to spend money on products and services have provided maximum discounts
which have contributed in effective growth and success of enterprise. Due to increase in various
health issue people are prefer more organic, hygiene and qualitative products and services for
satisfaction of their needs so ASDA by introducing organic products ranges is able to attract
existing as well as new customers to make purchase.
Technological Factors: There are various innovation and development in technologies so
customers have become more demanding therefore company need to continuously innovative its
technologies to fulfilment of different requirements of individual. Marketing manager of ASDA
has planned to use Social media such Facebook, intragram and twitter to influences maximum
individual to make purchased so that company can easily grow and expand its market operations,
Social media marketing strategies has helped in reducing cost and have effectively promoted
various products and services to large number of individual living across worldwide within
limited time and cost (Shepherd, Mcmullen and Ocasio, 2017). ASDA have also updated its
technologies as per recent trends in order to reduce cost, optimum utilization of resources and
maximum production so that requirements of maximum number of individual can be fulfilled.
Therefore, it can be stated that innovative strategies helps in adapting changes and brining
economic of scale so that maximum benefits can be rendered to end users.
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