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Asda- Strategic Analysis

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Asda- A ‘Low Cost’ Supermarket
To Vic Saunders
From Charlie Lloyd Jones
Hand in date- 23/01/2012



Contents
1.Executive Summary 3
2. Introduction 4
3. Findings 5
3.1 Asda’s competitive strategies 5
3.1.1 Cost Leadership 5
1.1.2 Strategy clock- Low price strategy 6
3.2 Asda’s measures to achieve cost leadership 6
3.2.1 Economies of Scale 6
3.2.2 Technological 7
3.2.3 Production of own brands 7
3.2.4 Supplier Bargaining and using different suppliers abroad 8
3.1 Critical Evaluation of Asdas Cost Leadership Strategy 8
3.1.1. Advantages of Cost Leadership- Porters 5 forces 8
3.1.2 Disadvantages of Cost Leadership 8
4.Conclusions 9
5.Recommendations 9
5.1 Expansion in UK and abroad 9
5.2 More own brand Asda goods 10
5.3 Technology advances 10
6. References 10

1.Executive Summary
The objectives of the report are as follows:
1. Identify and analyse the competitive strategy that Asda have utilised in order to develop their current competitive position

2. Critically evaluate the competitive strategy that Asda have utilised in the development of their current competitive position

3. Make appropriate recommendations   (Saunders, 2011)
The following report identifies Asdas cost leadership strategy and looks at what measures they take to achieve it and how it is able to give them a competitive advantage in the supermarket industry. As well as giving the advantages and disadvantages of a cost leadership strategy and recommendations of how Asada will be able to move forward.

2. Introduction
Asda Stores Limited is one of Britain’s leading supermarket chains which retails food, clothing, general merchandise, toys and financial services.   In 2010 Asda had the second highest market share in the supermarket industry with a share of 16.5%, second only to Tesco. Asda currently employs around 170,000 people and runs a total 377 around the UK.
Asda was first formed in 1965 by a group of Yorkshire farmers and originally sold only grocery...

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