Asda Internal And External Environmental Analysis

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5- MARKETING AUDIT: Marketing Audit provides information about internal and external environmental analysis, aims and objectives of marketing activities and organisational structure. 6- INTERNAL & EXTERNAL ENVIRONMENTAL ANALYSIS OF ASDA: Internal and external environmental analysis is a tool that is used by all companies in today’s intense competitive environment. Internal analysis determines organisational strengths, competitive advantage, and weakness. These could either be a strong supply chain, positive brand image, highly proactive research and development department. 7- INTERNAL ENVIRONMENTAL ANALYSIS: 7.1 SWOT ANALYSIS: SWOT analysis is used to analyse strengths, Weaknesses, opportunities and threats compared to internal…show more content…
Walmart is present in over 27 counties and was regarded as one of the three largest corporations in the world according to the 2012 edition of Business magazine. Moreover in the same year it was featured in being one of the 25 global retail brands. After becoming the part of Wal-Mart Asda has seen gradual increase in its sales making it the second biggest retailer in the UK. Succeeding the acquisition, Asda started converting all its stores to Wal-marts supermarket format and introduced “Price Rollback”. These low pricing strategies lead to Asda having success and positive outcomes as a result. Asda aims to cash in the Wal-Mart's global scale, by lowering its price further for its customers. Asda will use the global merchandising strategy to further influence Wal-Mart's global scale. Moreover, Strong financial performance of Walmart with returns reaching above $400 billion in FY2012. Asda currently are offering extensive product range through its stores. The format for their stores consists of Asda Supermarkets, Living stores, Superstores and Supercentres. Market line (2014) PRODUCT…show more content…
Asda can take this opportunity to cater to the global market as well with their online presence. Marketline (2014). 7.1.4 THREATS: One of the biggest threat for the ASDA is the low purchasing power of its customers .This has further been affected by growing inflation and reduce in public spending. By January 2013 2.52 million people were unemployed in the United Kingdom. Increase in taxes has resulted in consumers being very cautious in their spending. Rising labor cost is another factor. Increase in minimum age after NMW regulations, limited labor availability and increased overtime could further impact the operation cost of Asda. Asda currently employs 175,000 employees. Intense competition is another major threat being faced by ASDA. Currently Tesco is the largest retailers in the market, moreover they also have their presence in Asian and
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