Pestle Analysis on Asda

Topics: Supermarket, Wal-Mart, Affect Pages: 4 (1185 words) Published: January 9, 2013
Group Report

Asda is a British supermarket chain, which retails food, clothing, general merchandise, toys and financial services. It was formed in 1965 by a group of Yorkshire farmers; over the years Asda became Britain's best value food and clothing superstore. On 26th July 1999 Asda superstore merged with one of the largest food retailer's in the world, Wal-Mart. throughout the UK, Asda has 245 stores, 19 depots, 109,000 colleagues and 2,800 different suppliers. Asda's customers not only benefit from cheaper prices but also receive an unmatchable mix of fresh food, grocery, clothing, home, and leisure and entertainment goods. It operates within an oligopolistic market structure; as there are many firms within the market but only a few are in the power to dominate. Majority of the goods produced by Asda are homogenous goods to that of their rivals. For this reason, promotion and advertising of all products have to be carried out well in order to encourage brand loyalty. ASDA is a powerful retail brand, sharing 16.8% of the UK grocery market. It has very few ways to innovate ways to reduce its harmful impact on the environment like recycling, packaging, energy efficiency etc. It has a wide range of many different products with a very high brand reputation. It is also one of the largest job providers with 150,000 employees and with the expansion programmed extra 4000 jobs will be provided. Since Asda sells a wide variety of products like food, clothes, stationary etc the flexibility of the company is not as good as the competitors. Too many employees can also be an internal weakness, as it sometimes gets difficult to control and coordinate activities. The products might also lose their value and quality if the company decides to enlarge their productivity. Asda is trying to widen its product range and come up with new ones. It is planning to get into the tourism industry and the entertainment industry for cinemas, theatres etc. It is...
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