MBA Strategic Marketing Project – A Strategic Analysis of ASDA (2006)

Strategic Analysis of ASDA MBA Project – Asda was formed in 1965 by a group of farmers from Yorkshire, and now have 259 stores and 19 depots across the UK. They offer Britain’s best value weekly shopping with prices 10-15%, lower than their main competitors and an unique mix of fresh food, grocery, clothing, home, leisure and entertainment goods. Asda, Britain’s best value food and clothing superstore became part of the Wal-Mart family on 26 July 1999.

They employ 122,000 colleagues, who have a reputation for being the best and the friendliest in the industry. They work with over 2,800 suppliers’ national and local quality suppliers all About Asda. However, to gain this reputative position, it’s not been all that easy, as Asda have implemented a number of strategies in order to become market leaders and overtake Tesco’s and Sainsbury’s leading positions. Asda have been taken over by the world’s number one retailer, Wal-Mart in 1999.

This has led to many opportunities for Asda as they have began to develop many Asda/Wal-Mart super centres, offering a wider range of high quality products and services at a low price, in a huge floor space. These super centres are contributing to Asda’s aim of becoming the number one supermarket retailer in the UK. Thus, the question is, although not being on the number one position, why did Wal-Mart choose Asda? As a matter of fact, though this question is very vast, it can be simply put, that Asda had and have the right strategy.

Thus, as Johnson and Scholes (1999), have said “strategy is the direction and scope of an organisation over the long term: which achieves advantage for the organization through its configuration or resources within a changing environment, to meet the needs of markets and to fulfil stakeholder expectations.” Also as Richard Lynch has stated corporate strategy is the pattern of major objectives, purposes or goals and essential policies or plans for achieving those goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be.

  • 14,000 words – 80 pages in length
  • Excellent use of literature
  • Excellent use of marketing / business models
  • This is a Project not dissertation or thesis
  • Useful for assignment and dissertation preparation
  • Outstanding piece of work

1: Introduction

2: Environment Analysis
Porter’s Five Forces
Bargaining Power of Suppliers
Bargaining Power of Buyers
Threat of Potential New entrants
Threat of Substitutes
Extent of Competition Rivalry
Four Links Model
Governments Links and Networks
Informal co-operative lines and networks
Formal co-operative lines

3: Competitor Analysis
Main Competitors
Analysis and Impact of Competitors / Competition
Pricing Policies
Customer Relationship
Strategic Group Analysis
Market Share

4: Resource Analysis
Key Factors for Success
Mission Statement
High Quality Low Price
Targeting Strategy
Customer Relationship Strategy
Service with Personality
Value Chain
Inbound Logistics
Outbound Logistics
Marketing and Sales

5: Human Resource Analysis
The Cultural Web
Control Systems
Organisational Structure
Power Structures

6: Financial Analysis
Profit Margin
Liquidity Ratio
Gearing Ratio
Shareholder Funds
Return on Capital Employed (Profitability Ratio)

7: Options Available
Analysis of options

8: Recommendations

9: The Balance Scorecard

10: Usefulness of Models

11: References

12: Appendixes
ASDA Suppliers
Pest Analysis
Industry Life Cycle
Background of Competitors
Demographics of ASDA’s shoppers
Various Strategies and Schemes of ASDA’s Success
ASDA’s distributors
Support Activities of the Value Chain
HR Values

Strategic Analysis of ASDA MBA Project
Strategic Analysis of ASDA MBA Project

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