Pestel Analysis -Asda

Topics: Supermarket, European Union, Ethnic group Pages: 3 (543 words) Published: January 29, 2009

PESTLE Analysis of a food retail industry - ASDA
Must explain specific point relating to Industry
Opportunities and threats
Write down 10 -20 points in each PESTLE


1. Government policy on taxation
2. Political unrest – due to influx of large number of foreign nationals in the country. 3. Unstable Government due to govt inability to stabilise the economy. 4. Government education policy – efforts to encourage more people to stay on high education


1. Credit crunch
2. Recession –leads to unemployment
3. High interest rates
4. High cost of living – e.g. high fuel prices/ high supermarket prices (this could lead to lower demand. 5. New line of products for EU citizens
6. Increased demand due to online-shopping
7. Increase in employment e.g. due to online-shopping – i.e. drivers and ‘home shopping assistants’


1. Large influx of EU citizen in the country leading to a high demand for accommodation, welfare, healthcare and education 2. Changes in social trends –
3. Ageing population could lead to an increase to ASDA’s pension payment for their employees. It could also lead to another source of labour pool for ASDA to tap into. 4. An ageing population could also lead to unwillingness to work and an increase in pension 5. Lifestyle changes – longer opening hours in supermarkets means that people are working longer and / or flexible hours 6. In areas of high concentration of ethnic groups, goods and services are targeted towards that ethnic group e.g. Slough / Southall


1. New ways of shopping – online-shopping
2. New product types i.e. mobile phones, MP3 players etc
3. Improved efficiency in stock control due to bar coding 4. Cost reduction due to introduction of new technology i.e. lower cost of labour 5. Self scanning of products
6. Chip and Pin


1. Increased demand could lead to increased...
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