Tesco vs ASDA: UK's Retailing Battle


Code : COM0099

Year :

Industry : Retailing

Region : US

Teaching Note: Available

Structured Assignment : Not Available

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Abstract: The competitive scenario of the UK retail industry changed with the entry of Wal-Mart through its purchase of ASDA in 1999. ASDA intensified the competition through its strategy of 'every day low prices’. It quickly established itself as the low price retailer.

However, focus on quality and customer service helped Tesco to become the leading retailer in the UK. To compete with ASDA in terms of low prices, Tesco also started to greatly reduce their prices. This counter strategy of Tesco helped it hold a major market share of the retail market, leading ahead of its competitors.

On the other hand, ASDA in spite of providing low prices, saw its market share continuously decrease in the year 2005.

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Pedagogical Objectives:

  • To understand the competition between the two leading retailers, Tesco and ASDA, along with the differences in the strategies adopted by them
  • To discuss the sustainability of competition squarely based on price
  • To discuss the desirability of counter strategies under such circumstances.

    Keywords : Tesco; ASDA; UK retail industry; Wal-Mart; Sainsbury?s; Competitive strategies; Cost-cutting strategies; Acquisitions; Retailing battle; Competitive Strategies Case Study; Cost competitiveness; Objectives; Customer service; SMILES marketing campaign

    Contents :
    » Retailing Industry in the UK
    » Tesco and ASDA: Company Profiles
    » Tesco vs. ASDA: The Retailing Battle

    Case Introduction >>

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