ASDA marketing plan

2961 Words Jul 18th, 2015 12 Pages
A report on the Strategic Analysis of ASDA: Focus on ASDA food Market.

Executive Summary
ASDA is the second largest supermarket chain in the UK, in terms of market share. It has operations all around the UK. It has different categories of market offering, Food & groceries is one of the dominating segments. The parent company of ASDA is globally renewed retain chain Wal-Mart. However, the report has covered the strategic analysis on ASDA food; based on their current market situation and strategies. In the previous assignment, the writer has covered internal analysis and competitive situation. The company has strong competitors in the home country, like Tesco. In this report, the writer has used different strategic tools
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India, China
Threats
Strong Competitions in home market
Pressure on maintaining low price (Renton, 2011)
Source: Self-Creation
The SWOT analysis of ASDA can help the organization to make strategic decision regarding their internal and external environment. However, Porter's model is also an effective analytical tool to evaluate competitive strategies. ASDA food has now strong sourcing and distribution network, they want to maximize their market at the each corner of the country as well as in the abroad. The parent company 'Wal-Mart' has strategic planning on the market expansion of ASDA food.

2.2 Porter's Five Forces analysis

Adapted from: http://www.blackwellpublishing.com/grant/pdfs/CSA5eC03.pdf
Porter (1980) identified some competitive forces that shapes and fosters competition in a market and determines the inherent long run attractiveness of a market. He also said that, this analytical tool could be effectively used to understand the industry level situation. However, the findings based on the Porter's model clarify that, the company has strong competitive situation now in the UK as ASDA has strong rivals like; Tesco, Sainsbury's, Morrisons etc.

Table: Porter's five forces analysis on ASDA (Food)
Forces
Position
Threats of New Entrants
Moderate to high
Rivalry
High
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