Competitive Strategies Case Study

ASDA: Competitive Strategy in UK Retail Market

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Abstract:
ASDA was the second largest supermarket chain in the United Kingdom (U.K.). Positioned as a value for money store, it sold groceries, apparel, CDs, books, videos, and other household items. ASDA, which was taken over by Wal-Mart in 1999, had used the formula of Every Day Low Prices (EDLP) to gain market share in the British retail market. The initiative proved successful for a few years, but stopped yielding results as competition increased. In 2005, ASDA’s sales declined and market share fell from 16.7% in 2004 to 16.5% in 2005. This case study discusses the strategy adopted by ASDA’s to make a turnaround

Pedagogical Objectives:

• Changes in retail industry in UK
• To analyse the ASDA’s Pricing Strategy
• To discuss the ASDA’s trouble shooting initiatives.

Keywords : Supermarket chain; Wal-Mart; Value for money; Changing management; Business management; Business strategies; Greg Benneman; Aggressive price; Competitive Strategies Case Study; Competitors; Market share; Price-rollback strategy; In-store promotion; Morale boosting; Service quality; Online selling; Store extension and new openings

Contents : 
Retail Industry in UK
Business Strategy
Trouble at ASDA
British leading retailers
Trouble Shooting Initiatives
Competitors Comparison
Andy Bond’s Strategy
UK Supermarket Fashion