Swot Analysis on Asda

SWOT ANALYSIS

Asda Stores Limited (Asda), a wholly-owned subsidiary of Wal-Mart, is a grocery and general merchandise retailer in the UK. Asda offers a broad range of products and services through its stores. A diversified business portfolio enables Asda to target different customer segments. However, slowdown in the UK economy may adversely affect the company's revenues.



Strengths

Weaknesses

Strong support from Wal-Mart Wide product and service portfolio

Product recalls affect the brand image

Opportunities

Threats

Increasing demand for private labels Rising popularity of online shopping

Slowdown in UK economy Intense competition

Strengths

Strong support from Wal-Mart

Asda was acquired by Wal-Mart in 1999 and thus became part of the world's biggest retailer. Wal-Mart serves customers and members more than 200 million times per week at more than 9,700 retail units under 69 different banners in 28 countries. Wal-Mart ranked in the top ten among retailers in Fortune Magazine's 2010 Most Admired Companies survey. Since being bought by Wal-Mart, Asda has leveraged Wal-Mart's global scale and steadily increased its market share to become the second largest retailer chain in the UK. Subsequent to its acquisition, Asda initiated a "price-rollback" program and converted stores to Wal-Mart's supercenter format under the Asda-Wal-Mart banner. Asda's implementation of Wal-Mart's low pricing strategy has yielded positive results. Asda is an integral part of the international portfolio, contributing 29.1% of sales in FY2011. By leveraging Wal-Mart's global scale, the company aims to lower prices even more for its customers. Asda will use global merchandising centers to further leverage Wal-Mart's global scale. Furthermore, Wal-Mart's robust financial performance with revenues reaching $421.8 billion during FY2011 renders financial stability to the company. The Wal-Mart umbrella not only provides Asda with strong brand recognition but also fuels the company's top line growth.

Wide product and service portfolio

Asda offers a broad range of products and services though its stores. The company, through 538 stores as of August 2011, offers wide assortment of merchandise. This makes it a one stop solution. It contains food and non-food items. It offers food, apparel, toys, and general merchandise, electrical.

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