Download as PDF In the immediate aftermath of the Brexit vote, political uncertainty had led to a dampening of consumer confidence In the medium-term, as currency hedging unwinds, the cost of goods purchased overseas will effectively become more expensive. The debate for retailers will then be whether to increase prices or absorb the loss into margins In the long-term, key considerations will be:
These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. It has successfully integrated number of technology companies in the past few years to streamline its operations and to build a reliable supply chain.
Successful track record of developing new products — product innovation.
Highly skilled workforce through successful training and learning programs. ASDA is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.
The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in. This brand portfolio can be extremely useful if the organization wants to expand into new product categories.
Good Returns on Capital Expenditure — ASDA is relatively successful at execution of new projects and generated good returns on capital expenditure by building Asda weakness revenue streams.
Strategy is about making choices and weakness are the areas where a firm can improve using SWOT analysis and build on its competitive advantage and strategic positioning.
Not highly successful at integrating firms with different work culture. As mentioned earlier even though ASDA is successful Asda weakness integrating small companies it has its share of failure to merge firms that have different work culture.
There are gaps in the product range sold by the company. This lack of choice can give a new competitor a foothold in the market. The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories.
ASDA has to build internal feedback mechanism directly from sales team on ground to counter these challenges. High attrition rate in work force — compare to other organizations in the industry ASDA has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees.
Investment in Research and Development is below the fastest growing players in the industry. Even though ASDA is spending above the industry average on Research and Development, it has not been able to compete with the leading players in the industry in terms of innovation.
It has come across as a mature firm looking forward to bring out products based on tested features in the market. Need more investment in new technologies.
Given the scale of expansion and different geographies the company is planning to expand into, ASDA needs to put more money in technology to integrate the processes across the board. Right now the investment in technologies is not at par with the vision of the company.
Opportunities for ASDA — External Strategic Factors Opening up of new markets because of government agreement — the adoption of new technology standard and government free trade agreement has provided ASDA an opportunity to enter a new emerging market.
Stable free cash flow provides opportunities to invest in adjacent product segments. With more cash in bank the company can invest in new technologies as well as in new products segments.
This should open a window of opportunity for ASDA in other product categories. New trends in the consumer behavior can open up new market for the ASDA. It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too. New environmental policies — The new opportunities will create a level playing field for all the players in the industry.
It represent a great opportunity for ASDA to drive home its advantage in new technology and gain market share in the new product category. Government green drive also opens an opportunity for procurement of ASDA products by the state as well as federal government contractors.
The new taxation policy can significantly impact the way of doing business and can open new opportunity for established players such as ASDA to increase its profitability.Global stocks and US futures are higher as Mega Merger Monday comes back with a bang following a trio of blockbuster deals announced over the weekend.
Shop online at ASDA Groceries Home Shopping. The same great prices as in store, delivered to your door with free click and collect! No sooner had Asda announced it would cut the price of unleaded by 2p a litre, than Morrisons and Sainsbury's struck back with a pledge to do the same.
The CEO of Asda, the UK's second-largest grocery chain, has called the new competitive environment created by Aldi and Lidl "the worst storm in retail history.". Expert marketing advice on Student Questions: Strengths and weaknesses of Asda Ltd?
posted by Anonymous, question Asda’s chief executive, Andy Clarke, has said retailers face a tough Christmas, as the supermarket reported its fifth consecutive quarter of declining sales.