Asda: Retail Industry Trends, Analysis and Recommendations Report

This report provides a comprehensive analysis of Asda, a prominent British supermarket retailer, within the context of current trends in the UK retail industry. It begins with an introduction to the retail sector and a brief overview of Asda's history and position in the market. The report then delves into the prevailing trends influencing the retail landscape, including the growing emphasis on sustainability, the increasing importance of payment flexibility, and the significance of corporate social responsibility. A detailed SWOT analysis of Asda is presented, evaluating its strengths, weaknesses, opportunities, and threats. Based on this analysis, the report offers specific recommendations, such as implementing a total quality management system and leveraging mobile payment technologies, to enhance Asda's performance and competitiveness. The report concludes with a summary of the key findings and their implications for Asda's future strategies.

Inquiry Based
Learning

Table of Contents
INTRODUCTION...........................................................................................................................3
CURRENT TRENDS IN RETAIL INDUSTRY.............................................................................3
ANALYSIS OF ASDA....................................................................................................................5
Table1. SWOT Analysis table for Asda.................................................................................5
RECOMMENDATION...................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Retail industry is a place where businesses meet with the motive of exchanging goods and
services by paying appropriate amount of money according to the cost of the offerings. In retail
industry the retailer act as a mediator between the users or customers and the wholesalers. The
retailer make business transaction with the manufacturers and wholesalers where the buy the
goods and then make sales to the ultimate uses of those respective products and services. Retail
industry and the retailers are responsible for satisfy the needs of consumers by efficiently
determining their purchasing criteria and decisions and rendering the best goods or services. The
Project is developed for Asda stores limited, which is a British supermarket retailer (Efstratiadi
and et. al., 2019). Asda was founded in 1949 by Peter and Fred Asquith and Sir Noel Stockdale.
The organisation is a subsidiary of a big giant in retail industry known as Walmart. Asda is the
second largest retailer in Britain and serves in different locations of the world but headquartered
in Leeds, England, UK. The report consists of thorough analysis of the current trends in retail
industry along with analysing the position of Asda with the help of SWOT analysis framework.
Once the market research is conducted then recommendations are provided to company in
relation with improvements and enrichment of the retail organisation in the marketplace.
CURRENT TRENDS IN RETAIL INDUSTRY
The health of the retail industry in the UK is increasing the changing and fluctuating which is
creating many questions in minds of people and marketers over the past few years. The UK
economy is not stable and the biggest reason behind it is recently to place BREXIT. In o United
Kingdom there are several different industries are flourishing in which several businesses are
operating of different sizes big or small. Amongst these industries the retail industry is
considered as the most potential and the biggest industry because of the contribution it makes to
the GDP and per capita income of the country (Di Silvestre and et. al., 2020). The industries and
different operating sectors in the UK are facing berries problems and difficulties due to execution
of BREXIT, likewise the little sector is also affected and influence with the changes taking place
in the external environment for in the economy. The retail sector of the UK is evolving and from
the past times have been changed a lot. The current trends of the retail sector which can affect
the business of different retailers and organisations tips to be analysed and evaluated for working
accordingly e and making the most efficient use of the opportunities present. Few current trends

of the retail sector which can affect and its operations in positive and negative manners are as
follows:
 Expect more retailers to be part of the circular economy in effort to minimise waste
and promote sustainability- In today's scenario consumers are focusing over sustainable
goods and have become a big fan of sustainability. Survey has found out that almost 60%
to 65% of young consumers in the UK desires and by their required products from those
brands that are more transparent with their environmental impacts and focus is over
keeping their operations sustainable. The trend of sustainability is increasing as the
consumers are changing the buying behaviour and accepting those goods which are
developed through sustainable means. One of the day for doing so is by participating in
the circular economy which is a system targeted towards eliminating waste and
enhancing use of resources through reusing and recycling (Bosnic and Gasic, 2019).
 Payment flexibility will continue to be paramount- The payments and the different
payment systems are becoming flexible and it is continuous trend which is going to be
very significant in future for the retail sector and even other business sectors. Technology
is updating and digitalization is taking place becoming a very important and essential tool
of day-to-day life people. Cashless transactions with the help of different payment
systems and with credit cards is not going away even it is going to to increase as the
consumers who are the main and the most important element of retail industry old is and
comfort while making payments flexibly. Mobile payment systems with the help of
different application is increasing and gaining more significance inconvenient and
flexible pay systems. It is going to be even more steamy and therefore it is important for
retailers to provide an array of convenient payment options to the consumers allowing
them to be e comfortable and effectively manage their finances. Recently few researchers
conducted a survey and the outcomes revealed at 66% of population is attracted towards
cashless payment options and spend more money in a retail supermarket if they offer that
a payment systems and options. Along with it 63% of population states that it will be
more convenient for them that being able to buy now and pay later, this will make them
most likely to keep more number of goods and by higher quantity (Filimonau and Mika,
2019).

 Values and social responsibility e will be more important than ever- Corporate social
responsibility for CSR is then just a word or a business activity. Retailers and consumers
have now realised that it is very important for them to give back and contribute a little bit
to the society from where they are using different resources. It is not only beneficial for
the world and the society to contribute a little but it is also beneficial to the business and
to the organisational point of view. From many surveys and researches it has been
identified that consumers are leading and holding more power on businesses when it
comes to prioritising corporate social responsibility. Therefore, it is an opportunity and a
increasing retail trend where most retailers are investing and planning to invest higher
amounts in their CSR activities and efforts for ensuring a positive impact on the social
political and environmental factors in their respective communities in which they are
operating and to the rest of the world (Goff, 2020).
ANALYSIS OF ASDA
Asda is a retail organisation which is serving and dealing in grocery, general merchandise and
financial services. Organisation is considered as the second largest retailer of Britain I am the
biggest competitor of the organisation is Tesco. Asda is a subsidiary organisation of Walmart
who has the core business operation as a retailer operating through different supermarkets and
general stores. According to current trend analysis there are several opportunities available for
the organisation which can be exploited and explored with the help of the present strengths of the
company. Therefore a SWOT analysis framework is used in order to identify the potential
strengths and weaknesses officer while operating in retail sector of the UK. More over different
opportunities available for it in accordance with the current trends of the retail sector are also
recognised (Buchem, Klamma and Wild, 2019). The SWOT analysis table of Asda is as under:
Table1. SWOT Analysis table for Asda
Strengths Weakness
 The sustainability factor is the main
strength of the organisation because as
the has clear aims and objectives set in
the relative segment. Asda is focusing
over reducing the environmental
 The weakness of Asda IS IPS
positioning problem. In simple words
there has been various critics that
States, that Asda products and services
are not good as those of other

impacts of the organisations operations.
Is the is focusing over reducing there
environmental impacts bye bye-bye
concentrating in making their products
and services sustainable and also
focusing over the suppliers that
produces their respective offerings
(Giri, Thomassey and Zeng, 2019).
competitors and brands available in the
market. Along with it the discounts
offered by the organisation according
to other competitors are also not cheap
and therefore not certainly condensing
for many consumers.
Opportunities Threats
 Increasing technology and social media
is the biggest opportunity for any
organisation belonging to any different
business sector. An opportunity for
Asda too as from the trans it has been
identified that consumers are focusing
over increasing their convenience and
flexibility for payments and even for
shopping. Consumers are expecting
and being satisfied with the new
increasing mobile payments and
cashless transactions along with they
are also motivated and convinced with
new strategy of organisations where
consumers can buy products now and
make payments in future.
 The instable economy and fluctuating
governmental policies is the biggest
threat which influence the business and
operations of Asda. Along with it
environmental factors are also not in
favour of the business as recently e a
deadliest disease has been exposed to
the humankind known as coronavirus.
Existing threats to the organisation
which are also very prominent and
influential is from the existing
competitors and increasing new entrant
in the market because of the lowered
barriers of entry in the retail industry
(Dolega and et. al., 2020). It can be
concluded that the competitive
environmental economical and political
environment of Asda in the UK is not
favourable and imposes potential
threats on the operations and
flourishing of company.

RECOMMENDATION
In the above two sections a thorough analysis of the current trends which are flourishing in the
retail sector of UK are identified and analysed appropriately. According to these trends a
thorough analysis of the organisation is conducted with the help of SWOT analysis framework.
From the evaluation the strength an opportunity identified forest is it sustainability factor the
increasing focus of organisational operations towards the CSR activities and responsibilities. The
potential weaknesses of company is its lowered positioning techniques and the negative impact
of external environment on the operations. Therefore few recommendations to the organisation
and then action Plan is elaborated below.
 Total Quality Management system- As the goal identified forester is the organisation is
focusing over reducing there operational impacts on the environment and contributing
more towards the society. For doing so and its managers are working towards reducing
wastage of resources and increasing their efficiency and productivity by making at most
use of the assets available (Wilking, Gottlieb and Rickles, 2019). It is suggested to that
the managers should implement total quality management technique. This is an operation
management technique which specifically focuses over reducing waste from different
operational units and levels of the organisation and providing the most efficient and cost
effective product as outcome of it. The managers of Asda can make use of this
operational management approach effective implementation of their objective by
reducing waste and making at most utilisation of resources available to it. This operation
management approach can help the organisation in reducing their operational impacts on
the environment and allow it to develop more sustainable products and services for the
respective targeted audience.
 Mobile payments and flexibility- Asda's strength is sustainability approach and the
opportunity available in front of it is of providing more flexibility to consumers why
payments and making purchases. Technology is becoming a very potential and important
tool for businesses which can be utilised by Asda to improve its operations, change its
weaknesses into its strength and reach to the maximum customers providing them at most
satisfaction (Malar, 2019). Asda images of increasing technology and digitalization tool
for providing the best payment options to its consumers at the time of purchase while at
the stores or on the online platforms and websites of the company. The managers and the

top level people of USA develop an effective strategy for becoming competitive in the
market and making use of increasing technology for improving its positioning strategies
and activities.
CONCLUSION
The above report concludes that current trends of the market can affect and influence the
business in the respective industry in the most efficient and destructive manners. Retail industry
of the UK is facing several problems and frequent changes due to instability of economic and
environmental conditions. Therefore, thorough Analysis of current trends which are flourishing
in the UK is conducted. In context with the organisation of SWOT analysis framework is
utilised for identifying its potential strengths and opportunities and Eid-ul-Fitr weaknesses and
threats in relation to them. At the end few recommendations and suggestions are provided to
company where it is suggested that the organisation should make use of Total Quality
Management approach of operation management in order to enhance their sustainability
activities and vendor then corporate Social Responsibility in the best and the potential manner.

REFERENCES
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