Asda is a popular retail industry. It is a British supermarket retailer that was formed during the year 1949 and is headquartered in Leeds, West Yorkshire.
Over the years it expanded into the South of England and acquired 61 large Gateway Supermarkets, Allied Carpets, and other businesses like MFI and then later sold off its acquisitions during the year 1990 so that it could concentrate more on expanding its business on a supermarket.
During the year 1999, Asda was listed in London Stock Exchange after which it was later acquired by Walmart, an American giant for about £6.7 billion.
Apart from its supermarket services, Asda also provides many services that include mobile phone provider, financial services that make use of the EE network. The marketing promotions of Asda are based exclusively on price like Walmart, its parent company.
The Asda stores are full of various services that make the purchase more fun, relax, and productive. The various services that it provides are pharmacy, café, opticians, travel money bureau, scan & go, and click & collect.
Asda has its brands that provide the customers to save money and make a better living using their branded products. The company helps the customers to get a lower cost on the shopping basket without making any compromise on the quality of the product.
The company partners with businesses worldwide to provide the products that the customers want to buy. Asda has clear aims to reduce the environmental impact of their operations, the services and products they sell, and the suppliers that produce them.
Asda has various store formats like Asda Supercenters, Asda Superstores, Asda Supermarket, Asda Living, George Stores, Asda Essentials, and Asda Petrol.
Through this article, let us discuss the SWOT analysis of Asda.
Strengths in the SWOT Analysis of Asda
- Huge Range of Products – Asda has a wide range of products and services to the customers. They even provide financial services. Their various services include Asda Smart Price, Chosen By You, George Clothing, Asda Mobile, and Asda Money.
- Extensive Distribution – Asda has about 25 distribution centers across the UK that distribute across the network of stores. These are used basically to store chilled foods, clothing, and ambient products like cereals and carbonated drinks.
- ToYou Parcel Services – Apart from the extensive distribution network it has, Asda also provides the ToYou parcel service.
- Excellent Marketing Campaigns – Asda is popular for its marketing campaigns that project its services and customer delight.
- Good Connect – Asda maintains constant touch with their customers through social networking sites. It requests the customers to share their feedback; it conducts various competitions for the customers to relate to them and many more.
- Acquisitions – Asda has strengthened its brand by means of various acquisitions.
- Various Store Formats – Asda has various store formats like Asda Supercenters, Asda Superstores, Asda Supermarket, Asda Living, George Stores, Asda Essentials, and Asda Petrol.
- Various Brands and Services – Asda provides various brands and services for the customers. The various services are Asda Smart Price, Chose By You, George Clothing, Asda Mobile, and Asda Money.
- Awards – Asda has received various awards for its excellent services. One of the noted achievements is the Innovative Employer of the Year during the year 2009 at the Oracle Retail Week Awards.
- Sustainability – Asda has clear aims to reduce the environmental impact of their operations, the services and products they sell, and the suppliers that produce them.
Weaknesses in the SWOT Analysis of Asda
- Limited Global Presence – Asda has few global presences as compared to its competitors. This is a major weakness for its business.
- Restricted business entry – Asda’s ability to sell prices have basically restricted their entrance in few countries as they fear a strong competition from local vendors.
- Dairy Price-Fixing – During the year 2007, Asda, along with few other retailers have admitted pricing fix on the dairy products. Due to the price-fixing operation, there was a huge loss to the consumers.
- False Advertising – During the year 2010, a popular press ad for Asda was headed as “Lower price on everything you buy,” and a column headed saying “Lower prices than other supermarkets.” This has got the wrong image for the company.
- Critics – There are some critics about the quality of the product given by Asda. This impacts the company’s reputation.
- Horse Meat Scandal – During the year 2013, Asda has entered into a controversy where the DNA tests have relieved that the Asda’s Chosen By You fresh beef contains horsemeat. This is the first instance where meat adulteration scandal where horsemeat is being found in fresh meat.
Opportunities in the SWOT Analysis of Asda
- Expansion into New Domains – The company can expand its business operations into many new areas like pharmacy, jewelry, photo department, and many more.
- Expanding into Other Countries – The company can expand its business operations into other countries like India, China, and many more. This can help the brand to gain more visibility.
- Acquiring Smaller Company – Acquisition of smaller-company can help Asda to expand its business operations.
- Presence in Online Market – These days, more and more customers are expanding its business operations online. More and more customers tend to shop online in the UK. Hence, starting its online market sees a lot of opportunity for Asda’s business.
- Long Term Goals – Asda has a strong long-term goal that mainly targets 100% recyclable package, 100% sustainably sourced fish, operational waste recycled for anaerobic digestion, and reduction in food wastage. This sees a lot of opportunity for business growth.
Threats in the SWOT Analysis of Asda
- Price with other Retailer – Price war with other existing retailers is a big threat to the company.
- Government Changing Policies – The policies of the government keep changing, and this is, in fact, a huge threat to the business.
- Consistent Price Cut from their Competitor – A consistent price cut by their competitors would impact the Asda’s business.
- Other Online Retailers – The existence of many online independent retailers is also a threat to the business.