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Assignment requires you to perform a strategic review of Asda - Essay Example

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The company’s primary focus is to save money for the customers by offering lower prices than its competitors. Asda has developed its…
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Download file to see previous pages The system also tracks individual customer’s consumption pattern and offers them suggestions and special offers and discounts on products that they often buy. Asda realises that its major work force is dependent on human resources, so they provide extensive training to their employees. Acquisition by Walmart has enhanced its presence in the non-food retail market. Within five years, Asda’s non-food retail chain has increased its offering to more than 12,000 merchandize. 5
Asda is one of the leading supermarket chains in Europe, which was acquired by Walmart in 1999. It operates as one of the largest grocery store and it also sells a variety of products including apparels, household items, books, etc. After its acquisition by Walmart, Asda is supported financially and also in its operations by providing cheaper resources. Asda has its core competence in food retail, but it has now expanded in to the non-food sector as well. The company faces steep competition from fellow companies like Tesco, Sainsbury and Morrison’s. The product offering in the retail sector is highly standardized, so the companies try new ways to differentiate themselves on the basis of service quality and brand valuation. Market environmental factors like tax imposition and business regulations often pose hindrance on retail business.
Asda Stores Ltd., headquartered in Leeds, West Yorkshire, is a British retail supermarket chain which caters in sections like food, clothing, toys, general merchandise and financial services. In 1999, Walmart wanted to penetrate into the British market, so they lobbied with the then British Prime Minister Tony Blair and acquired Asda for £ 6.7 billion, winning a bid from rival Kingfisher plc. The main competitors of Asda are J Sainsbury plc, Tesco plc and WM Morrison Supermarket plc. Over the years, Asda has managed to position itself as UK’s cheapest retail supermarket. As of 2012, Asda’s operating profit increased by £51 million to £857 ...Download file to see next pagesRead More
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