SWOT Analysis of Asda: A Business Development Essay

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Running head: Assessment 2: Essay
Assessment 2: Essay
SWOT ANALYSIS
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Assessment 2: Essay
SWOT analysis is an effective part of the business. With the help of SWOT analysis the
companies can detail information regarding their internal environment. In terms of running the
business it is important for the companies to get different information from the internal and
external environment of the organization. This can be helpful for the management to develop
effective business plans. Like this they can gain proper competitive advantages as well as they
can easily sustain in the market with different approaches.
According to Dalton, (2019, p.249), Asda is an effective and successful company that runs their
business in the international market. This is mainly a British supermarket organization. The
company was founded in 1949 and from that time they have been successfully running their
business in a positive way. However, they get several effects from their business environment
and as per the environment they need to control their activities. SWOT analysis can help them to
manage their internal environment properly.
Strengths
 Asda has strong brand image and they are doing their business their business in the
competitive market. This can be identified as one of the main strength of this company
Asda.
 This is a very successfully company and very profitable company well. They are always
maintaining good relations with the customers and this helps them to attract the
customers towards their company easily.
 Asda offer quality products and services and this help them to get many awards easily.
This increases their brand value in the market and this is also their strength as well.
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Assessment 2: Essay
 Asda is always focusing on need and demand of the customers and focusing more on the
need and demand of the customers help them to encourage the customers towards their
company easily. This also helps them to gain competitive advantages over other
competitors easily.
 As per Seong et al. (2019, p.15), Asda offer variety of products and therefore customers
can get all the things in a single place. This can be strength as well.
 Asda is recruiting quality staffs for handling their business activities in an effective way
and they are also using latest technologies for making their business process better.
Weaknesses
 Competition level is very high in this UK market and therefore Asda is facing tough
competition in this UK market. This can be a weakness for this company.
 Different tough competitors are available in this like Tesco, Aldi and others. They are
trying hard to become a top company in this market. Therefore it becomes very difficult
for Asda to sustain in this competitive market succesfully.
 The company is witnessing price wars in this UK market and this also creates negative
impact towards their business,
 The company is focusing more on domestic market rather than international market. This
can create negative impact towards their growth (Liu and Wang, 2019, p.8).
 The customers don’t like to buy their all products and they are visiting other places for
buying those products. This can also creates negative impact towards the business of
Asda.
Opportunities
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Assessment 2: Essay
 The company is mainly a retail supermarket so they have the opportunities to expand
their business in different new areas such as photo, jewellery, pharmacies and so on.
 As sighted by Yang et al. (2019, p.13), along with this they can develop their business in
the countries like China, India and so on.
 They can make contracts with smaller companies to grow their business more.
Threats
 The price war with the retail brands can be a threat on the business of Asda.
 As stated by Cui et al. (2019, p.127), the company gets pressure to provide their products
and services in low prices so this is a threat for the company as they cannot get proper
profits with the pressure.
 The changes in the government polices can provide some challenges for the business as
well.
After analyzing the discussion it can be seen that Asda gets several effects from the internal and
external environment. Therefore, to manage their profit margin and business they need to use
their opportunities and develop their strengths more.
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Assessment 2: Essay
References
Cui, J., Allan, A. and Lin, D., 2019. SWOT analysis and development strategies for underground
pedestrian systems. Tunnelling and Underground Space Technology, 87, pp.127-133.
Dalton, J., 2019. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats). In Great Big
Agile (pp. 249-252). Apress, Berkeley, CA.
Liu, F. and Wang, Y., 2019. SWOT Analysis and Countermeasures on the Cultivation of
Preschool Teachers in Sichuan Province. Journal of Contemporary Educational Research, 3(2).
Seong, Y., Wehmeyer, M.L., Shogren, K.A., Palmer, S.B. and Little, T.D., 2019. Examining
Underlying Relationships Between the ASDA-S and the AIR and the ASDA of Adolescents and
Young Adults With and Without Disabilities. Advances in Neurodevelopmental Disorders, pp.1-
15.
Yang, X., Zhang, Y., Sun, Q.X., Zhou, J.X. and Zhou, X.N., 2019. SWOT analysis on snail
control measures applied in the national schistosomiasis control programme in the People’s
Republic of China. Infectious diseases of poverty, 8(1), p.13.
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