Dissertation: ASDA's Business Policies in UK Online Food Grocery

This dissertation examines ASDA's business policies and strategies for achieving and maintaining a competitive advantage within the highly competitive UK online food grocery market. The research begins with an introduction to ASDA's background and the context of the UK retail industry, highlighting the importance of innovation and strategic adaptation. The study investigates ASDA's current competitive strategies, including competitor analysis, pricing strategies, and the use of online platforms. The research objectives are to assess existing policies, identify areas for improvement, and propose new strategies to enhance market competitiveness. The methodology includes a review of literature, research philosophy, and data collection methods. The findings and analysis section focuses on retail trends in the UK and ASDA's specific competitive approaches. Finally, the dissertation concludes with recommendations for ASDA to strengthen its market position by considering various aspects like innovation, consumer perspectives, and competitive strategy.

Running head: DISSERTATION
Dissertation
Name of the Student
Name of the University
Author Note

DISSERTATION 1
Abstract
This is a study, which will evaluate the business policies implemented by ASDA for gaining
competitive advantage in the market. The research will focus on highlighting the online retail
industry in United Kingdom, which is highly competitive in nature. The retail industry in United
Kingdom is highly competitive due to the high growth rate and presence of influential brands in
the market. Thus, the companies will have to use innovation for gaining competitive advantage
in the market and implement strategies to mitigate the threats from the rival companies. Thus, the
study will analyze the competitive strategies used by ASDA in order to identify the additional
strategies, which can be applied in order to become the market leader in that segment. Thus, by
linking with the objectives of the study, it can be seen that the currents strategies of the
organization is not right for the present scenario of the market and they will have to make
amendments. Moreover, they have invested in expansion of their physical retail stores which has
back fired for them and thus, they will have focus on development of the online retail segment of
the organization. Thus, the study has been able to identify the strategies, which are required by
ASDA to improve their market competitiveness and have provided effective strategies.

DISSERTATION 2
Acknowledgement
By this research, I have experienced best possible learning of my life. By conducting this
research, I have learnt various concepts, models and theories. I first thank to the almighty God.
After that, I want to thank to my supervisor ______________ who is my friend, philosopher and
guide. I also thank my parents for being supportive and accommodative for completing this
research. I want to thank my friends for giving me the moral support while conducting this
research.

DISSERTATION 3
Table of Content
CHAPTER 1........................................................................................................................7
INTRODUCTION...............................................................................................................7
1.0 Introduction....................................................................................................................7
1.1 Background of ASDA....................................................................................................7
1.2 Background of the research...........................................................................................8
1.3 Aim of the Research....................................................................................................10
1.4 Research Objectives.....................................................................................................10
1.5 Research Question.......................................................................................................10
1.6 Research Limitation.....................................................................................................11
CHAPTER 2......................................................................................................................12
LITERATURE REVIEW..................................................................................................12
2.0 Literature Review........................................................................................................12
CHAPTER 3......................................................................................................................21
RESEARCH METHODOLOGY......................................................................................21
3.0 Research Methodology................................................................................................21
3.1 Research Philosophy....................................................................................................22
3.2 Research Approach......................................................................................................25
3.3 Data collection.............................................................................................................26
3.4 Data Analysis...............................................................................................................26
3.5 Sampling......................................................................................................................27
3.6 Reliability and Validity................................................................................................27
3.7 Ethical consideration...................................................................................................28

DISSERTATION 4
CHAPTER 4......................................................................................................................29
FINDINGS AND ANALYSIS..........................................................................................29
4.0 Retail trends 2017 in United Kingdom........................................................................29
4.1 ASDA Competitive Strategy.......................................................................................36
CHAPTER 5......................................................................................................................39
CONCLUSION AND RECOMMENDATION................................................................39
5.0 Conclusion...................................................................................................................39
5.1 Recommendation.........................................................................................................40
References..........................................................................................................................41

DISSERTATION 5
List of Figures
Figure 1..............................................................................................................................14
Figure 2..............................................................................................................................21
Figure 3..............................................................................................................................23
Figure 4..............................................................................................................................24
Figure 5..............................................................................................................................30
Figure 6..............................................................................................................................30

DISSERTATION 6
List of Table
Table 1...............................................................................................................................32
Table 2...............................................................................................................................33

DISSERTATION 7
Topic: The evaluation of business policies for attaining market competitiveness in the UK online
fresh food sector- a study of ASDA food grocery, UK
CHAPTER 1
INTRODUCTION
1.0 Introduction
This is a study, which will evaluate the business policies implemented by ASDA
for gaining competitive advantage in the market. The research will focus on highlighting the
online retail industry in United Kingdom, which is highly competitive in nature. The retail
industry in United Kingdom is highly competitive due to the high growth rate and presence of
influential brands in the market. Thus, the companies will have to use innovation for gaining
competitive advantage in the market and implement strategies to mitigate the threats from the
rival companies. Thus, the study will analyze the competitive strategies used by ASDA in order
to identify the additional strategies, which can be applied in order to become the market leader in
that segment.
1.1 Background of ASDA
Competitor analysis is a method of identify the strengths and weaknesses of the rival
organization and the chosen organization. The identification of strengths and weaknesses of the
rival companies will facilitate in strategy formulation for marinating their competitive advantage
in the market. Competitor analysis will consist of the macro, micro and the internal analysis of
the organization, which will provide a broader aspect of the strategy that should be implemented

DISSERTATION 8
for increasing the market share. ASDA is the second biggest company in United Kingdom
market after Tesco and is owned by Wal- Mart (Michalakeas et al. 2015). The growth of ASDA
has been immense in the market because of then cheap prices they can offer due to bulk buying
of Wal-Mart. ASDA has been able to maintain their competitive advantage in the market due to
distinctive edge. This distinctive edge has been realized by maintaining a good reputation in the
market and a good relationship with the suppliers in the market. Innovation plays an important
role in keeping up with the other companies in the market due to the high competitiveness of the
retail industry in the United Kingdom.
1.2 Background of the research
The main unique selling proposition of the organization is to offer products to the
consumers at reasonable price but at the same time maintaining the quality of the product they
are selling. Thus, the organization has been able to identify the target consumer and the products
are customized depending upon the needs of the consumers (Wood and McCarthy 2014).
Economies of scale are one of the main advantages of the organization as they can products from
Wal Mart at cheaper prices that are the reason for their exponential growth in the market.
However, it is still not the market leader and it lagging behind Tesco. Moreover, Sainsbury’s
who was being ASDA has been able to gain competitive advantage over them and has been able
to acquire more market share than the other companies in the market have. Thus, the
organization will have to continue using innovation in the products process so that they can keep
on increasing their market share and competitive advantage.
When comparing the prices of ASDA with other companies in the market it can be said
that it can provide the products at cheaper prices but none of the products are of premium

DISSERTATION 9
quality. Thus, the study will try to find ways to improve the quality of the product they are
offering to the consumers in the market and at the same time by maintaining economics of scale,
which is one of the major factor for their distinctive edge. The organization has been using other
strategies, which will add value to the products they are offering to the consumers in the market,
which includes various schemes and programs (Young et al. 2017). Thus, the organization can
use this as a unique selling proposition the United Kingdom retail industry as the market is
saturated. ASDA organizes lots of events to attract the consumers and one such instance is the
movie drive where the consumers were allowed to watch movies at cheaper prices than the
market and the organization was able to sell products like hot dogs.
The use of online media is another factor for maintaining the competitive advantage and
the organization has been able to gain popularity due to the use of social media and online
platform for selling of their products. Moreover, the organization has been able to provide this
service as prices lower than any other organization in the market, which suggest that the supply
chain is very efficient. Thus, the use of vertical integration is constantly improving the supply
chain procedures. However, these processes are the standard processes in most of the
organizations in the United Kingdom who are top companies in the sector (Haleem and Jehangir
2017). Thus, this research will identify the new strategies, which ASDA can implement by
maintaining the core structure, goals and objectives of the organization. Moreover, it has been
earlier mentioned that the other formable competitors are making their move so the organization
will have to use in innovation to, maintain their long-term sustainability in the market. The
consumer perspectives the United Kingdom is also different as there are lot of consumers who
prefer to buy products from the British companies. Thus, the organization will have to careful
about choosing their target market, as they will not be able to change the perception of these

DISSERTATION 10
consumers. In order to do that ASDA will have to make changes to the products they are offering
so that they offer something new to these sets of consumers (Lan and Dobson 2017).
1.3 Aim of the Research
To discuss the policy/policies that ASDA food Grocery can undertake to ensure and
maintain its market competitiveness in the UK Online Food Grocery sector.
1.4 Research Objectives
 To present constructively policies that can aid organizations to attain market
competitiveness within the UK Online Food Grocery sector.
 To discuss ASDA Food’s present policy/policies that ensure its current market position
within the UK Online Food Grocery sector.
 To highlight additional policy/policies that can be adopted by ASDA to ensure
continuous market competitiveness in the UK Online Food Grocery sector.
 To develop and present viable options on how the highlighted policy/policies can be
implemented by ASDA.
1.5 Research Question
 Explain various approaches to attaining market competitiveness in the UK Online Food
Grocery sector.
 What method of approach is ASDA presently adopting to compete within the UK Online
Food Grocery sector?
 How can ASDA enhance and sustain its market competitiveness in the UK Online Food
Grocery sector?

DISSERTATION 11
1.6 Research Limitation
The research is based on secondary analysis of data so no new findings will be gained
from the study. Thus, only the perspective of different researchers will used to identify suitable
strategy. The study will consist of mono method and the implementation of a mixed method
would have produced a better result and had given a different dimension to the study.