SWOT analysis of ASDA
This is a detailed SWOT analysis of ASDA. It aims to examine the strengths and the weaknesses of ASDA. It also examines the opportunities the company should explore and the threats it should keep a close eye on. ASDA is a British supermarket, headquartered in Leeds, England. It is a wholly owned subsidiary of the American retail giant, Walmart.
Strengths of ASDA
ASDA is the third largest retailer in the UK. As of December 2019, it has 14.8% market share (Kantar, 2020) and has over 630 stores. It is famous for its strong management. It has filled a number of its strategic positions over the years by hiring people from other big global names such as Carrefour.
ASDA has expanded very well in the UK over the years. It serves more than 19 million customers every week and 98 per cent of the UK homes are served by its online platforms www.asda.com and www.george.com. It has a range of store formats i.e. Supercentres, Superstores, Supermarkets, Asda Living, George stores, and Petrol Filling Stations (ASDA, 2020).
ASDA is well-known for its economies of scale and superior technology. Its continual innovation always drives it forward. Its loyalty scheme earns customers reward points on homeware and clothes purchases. ASDA is also famous for the quality of its products. It was declared Retailer of the Year 2019. It was also crowned the Chilled Retailer of the Year, Bakery Retailer of the Year, and Drinks Retailer of the Year 2019.
Weaknesses of ASDA
ASDA has positioning problems. Some critics argue that ASDA products are not as good as those of Waitrose and other similar brands e.g. Sainsbury’s. Likewise, it is not cheaper than discounters such as Aldi and Lidl. This is certainly not convincing for many customers.
ASDA has been mired in a number of controversies over the years. For instance, it was found in 2007 that ASDA along with other supermarkets were engaged in price fixing of dairy products between 2002 and 2003 costing consumers around £270 million. The company has also been criticised for misleading advertising campaigns and its positions in horse meat scandal.
Opportunities for ASDA
More and more customers are shopping online in the UK; hence a great opportunity for ASDA to secure more marker share. The company can grow further by opening new stores and taking over smaller companies as it did with Focus DIY in 2011. ASDA converted five of six Focus DIY stores into supermarkets. Similarly going beyond the UK to explore opportunities abroad is worth the efforts.
Threats to ASDA
Threat is the last element to discuss in the SWOT analysis of ASDA. ASDA faces a number of competitors in the UK. Tesco is the market leader, while Sainsbury’s is ASDA’s nearest rival. Other notable competitors are Morrisons, Waitrose, Aldi, Lidl, and Co-op. It is also worth noting that growth of independent online retailers is also a threat.
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Last update: 17 January 2020
ASDA (2020) Company facts, available at: https://corporate.asda.com/our-story/company-facts (accessed 10 January 2020)
Hitt, M.A.., Ireland, R.D. & Hoskisson, R.E., 2007. Strategic Management: Competitiveness and Globalization. 7th ed. Versailles: Thomson.
Kantar (2020) Great Britain: Grocery Market Share, available at: https://www.kantarworldpanel.com/en/grocery-market-share/great-britain (accessed 15 January 2020)
Photo credit: Pixabay
Author: Dr. Sewel Sodry
Dr. Sewel Sodry is an internationally acclaimed author and teacher of business management. He is also a specialist coach, trainer and educationalist. He holds a Master of Business degree from Victoria University, Australia and a PhD from King’s College (University of London).