Asda Strategic Management

I. Introduction 2
II. Content 2
1. The wider environment in the UK. 2
Political 2
Economic 2
Social 3
Technology 3
2. The competitive environment within the UK. 3
The threat of substitute products 3
Bargaining power of buyers 3
Threat of new entrants 3
Bargaining power of suppliers 4
Existing rivalry between competitors 4
3. Asda's strategic position within the UK. 4
Strength 4
Weakness 4
Opportunities 5
Threats 5
4. The competitive strategy of Asda. 5
5. Future development strategy of Asda. 7
III. Recommendation 9
IV. Reference 10

I. Introduction
Asda was first formed in 1965 by a group of Yorkshire farmers and originally sold only grocery products. However in 1990 Asda sold its first range of clothing under the name ‘George’ and was soon in most of their stores. In 1999 Wal-Martbought Asda and has since moved into other retail areas such as electronics, home appliances and home, travel and motor insurance, as well as setting up an order and delivery service (Saunders, 2011). Now Asda is the third-biggest supermarket in the UK with over 500 stores across the UK and provide around 35,000 products to customer. The following report will illustrate business-strategy level of Asda by using some strategic analysis model like PEST, SWOT, Porter's Five Force and Porter's Generic Strategies. This report also gives to Asda some advices for future development strategy.
II. Content

1. The wider environment in the UK.
PEST analysis is a simple tool, useful and widely used.It will help to capture the "overview" of political, economic, cultural - social and technological environment in the UK
The political environment is ideal for business with a stable friendly government. The political environment in the UK is considered to be relatively stable. The UK is a nation under a constitutional monarchy. Head of state is the king, but the king only symbolic role. Executive power is exercised on behalf of the king, but in...