LongPest Analysis of ASDA Superstores
Introduction
ASDA, is the Britain's best value food and clothing superstore, and
became part of the Wal-Mart family on 26 July 1999. Wal-Mart stores,
Inc are the world's largest retailer, with $191 billion in sales in
the fiscal year ending 31 January 2001. The company employs more than
1 million associates worldwide through nearly 3,500 facilities in the
US and more than 1,000 units in Mexico, Puerto Rico, Canada,
Argentina, Brazil, China, Korea, Germany and the UK. More than 100
million customers per week visit Wal-Mart Stores.
ASDA is a private sector organisation, and before Wal-Mart took over
ASDA, ASDA Stores were only based in the local and national parts of
UK. After ASDA became part of the Wal-Mart family, are now spread
globally around the world.
I have chosen this organisation because I can obtain information
easily as I have an ASDA Superstore two minutes away from my house in
Longsight.
I have produced a LongPest grid for ASDA Plc. The LongPest grid is
explained in detail below. For the LongPest grid for ASDA Plc, see
separate sheet.
Political - Local/National level
The political element of the external environment remains the same for
the local and national levels because the ASDA Superstores are only in
Britain.
The Ethical trade is crucial element for the ASDA business. ASDA takes
every step to ensure that their suppliers are compliant with the
Ethical Trading Initiative's base code of conduct. Also, ASDA has
invested in a programme of third-party ethical audits of ASDA's
suppliers. All suppliers will have been audited by mid 2002.
ASDA aims to...
... middle of paper ...
...bove aspects also apply to the global level due to ASDA being
part of the Wal-Mart family, which is a large organisation spread
across the world; although Wal-Mart stores will have more
technological advancements.
For more information on ASDA, refer to appendices 1-8, and/or visit
the website at www.asda.co.uk.
Conclusion
ASDA is a well-established organisation and communicating well with
their customers and have made a lot of improvements. As ASDA has
joined the Wal-Mart family, ASDA stores are working much more better
and making more profits from a large number of customers due to
attracting more customers to achieve both of the ASDA and Wal-Mart
products under one roof. ASDA has more socio-cultural and economic
aspects and ASDA's main competitors would be stores like Tesco,
Sainsbury, Kwik Save, etc.
The success of Wal-Mart is so great, that many people believe that Wal-Mart is becoming a monopsony . Suppliers are forced to deal with Wal-Mart because of the large percentage of sales at Wal-Mart cash registers. As such, Wal-Mart also has the ability to dictate prices of the goods it receives from the suppliers. Every day, more and more retail stores close their doors for good because Wal-Mart controls such a huge margin of the retail sector.
Centralized distribution is also a huge advantage to its suppliers. They don’t need to send their products to each and every store; instead they send it to a central location and from there ALDI takes over the distribution process. ALDI is also known to form long-term partnership with their suppliers, which provides the suppliers with stability and security for the future. ALDI’s reputation to meet the quality standards also indicates the low bargaining power of suppliers because ALDI is the one deciding the quality expectations and if they are not met then they will not buy the products. If the suppliers fail to meet the quality standards their contract with ALDI will be at risk.
I chose to prepare a SWOT analysis on Wal-Mart. On July 2, 1962 Sam Walton opened the first Wal-Mart store in Rogers, Arkansas. Wal-Mart employs a detailed system of data technology that supports its local as well as international operations. Through this system, it is possible to supervise the achievement of its stores, on a real time basis. It also supports Wal-Mart’s economical procurement. Wal-Mart also uses the most up to date technologies available to maintain and manage its local and global logistics operations, by coordinating technology into its core operations. Wal-Mart is able to conquer the tough competition as well as accommodating its large market productively. Wal-Mart is the second largest retail company in the world. It is a billion dollar company with loyal customers and competitive prices that are lower than other competitors. The company receives a great discount from their supplier due to ordering products in bulk. Wal-Mart has an extensive customer
Wal-Mart began operations in 1964 and has since become the world leader in retail. Walmart began with goals to provide consumers with goods when and where they wanted them (Frank, n. d). Walmart developed cost structures to allow its company to offer consumers everyday low pricing. Walmart’s corporate mission focuses on a global growth strategy through concentrated integration. Wal-Mart's supply chain management supports a fast and responsive logistics system. In this paper, I will converse about the history of Walmart, and its supply chain management
Last, Wal-Mart is also in direct competition with large supermarket retailers. Production capacity in the grocery industry is quite populated and Wal-Mart poses a serious threat to many supermarket retailers, both large and small. Kroger, Albertson’s, and Safeway are all finding it very difficult to compete with Wal-Mart’s low prices. Because the industry is so crowded, even the large supermarket retailers are seeking to differentiate themselves in order to stay afloat.
Best Buy has grown steadily and improved its business and customer’s experience in many ways throughout its journey from 1966 until 2011. The company’s main objective is to focus on making the customers visit to the store as pleasant and as informative as possible. The company is on its steady path of revolution and innovation by implementing customer driven and technology powered strategies. When any new business is setup, it faces its preliminary phase challenges and so has Best Buy but now the business is booming in the world of technology. It’s well known to be a one stop shop for all technological needs.
When Best Buy, the leading American consumer electronics retailer planned to expand its operations outside the United States in December 2000, they earmarked Canada as the first foreign country for its international expansion strategy. The choice was mainly driven by the fact that Canada was its closest neighbor with a retail market that was largely similar to the domestic United States market, which Best Buy had already dominated. The Canadian consumer electronic retail market was largely fragmented, with the dominant force being future shop which had 15% of the market share. The original expansion strategy for Best Buy was to enter the Canadian market and directly compete with future shop as well as the other market players for a piece of the market share.
Sethi, Parkish. "The World of Wal-Mart." Carnegie Council. N.p., 18 May 2013. Web. 26 Jan 2014. .
For every $100 spent at a locally owned business, $68 of that will stay local compared to $43 if spent at a “big box store”. Even though people believe that local businesses are not as beneficial as a big box store, buying locally not only benefits the business but also the community because buying locally builds a strong community and the money you spend at a local business gets put back into the community.
Wal-Mart Stores Inc. is in the discount, variety stores industry. It was founded in 1945, Bentonville in Arkansas which is also the headquarters of Wal-Mart. Wal-Mart operates locally as well as worldwide. It operated 1209 discount stores, 1980 super centers, and 567 Sam’s Club by January 31, 2006. It has also extended its operations to many international countries. It runs its retail stores in two forms: Sam’s Club and Wal-Mart Stores. The Sam’s Club sells assorted product lines such as hardwares, electronics, jewelry, and to mention a few. The Wal-Mart stores also offer similar products in addition to the following: health and beauty products, apparel for women, men and children, household appliances etc (www.yahoo.finance.com). The Vision Statement, Mission Statement, Values and Code of Conduct, Corporate Governance: Directors, Executive Management, Committees and Stakeholder will be the key elements that will discussed in this report as it relates to Wal-Mart. In addition to that, the major trends in the general/macro environment and industry will be analyzed.
The food and staples retailing is an increasingly competitive industry. The market giants (competitors) are Coles (owned by Wesfarmers) which has 741 stores across Australia and plans to add 70 m...
Over the past years, Wal-Mart has been continuously accused of poor customer service. In 2013, USA Today rated Wal-Mart as the most hated retailer based on their low customer satisfaction score collected by American Customer Satisfaction Index. However, as years have passed, Wal-Mart continues to trend as the biggest retailer with bad customer service (The Huffington Post, 2015).
Eule, A. (2013). It’s time for Amazon to open its black box. Barron’s, 93(42), 37.
The corporation I have chosen to assess for this project is Wal-Mart. Wal-Mart is a retail company that is incorporated in Delaware, which trades under three segments: Walmart U.S., Walmart International and Sam’s Club. The company history shows that the road to Wal-Mart was a long one. The company started under the name Walton’s 5&10, which was opened by Sam Walton in 1950 on the Bentonville town square. Over the years the company was successful and on July 2, 1962, Sam Walton opened the first Walmart store in Rogers, Ark. By 1967 the Walton family owned 24 stores and rang up $12.7 Million in sales. In 1969 the company officially became incorporate as Wal-Mart Stores, Inc. In 1970 Wal-Mart became a publicly traded company, and the first
The following has been discussed in the document proceeded in order to fully understand Mr Price Group Ltd. Focusing on Mr Price clothing. There is a brief history of the company and the struggle it in counted before become a successful franchise. The successful business is then further analysed using a variety of tools such as SWOT, Porter’s Five Force Model and PESTLE. Once all issues relating to the business are mentioned, strategies are recommended in order for the business to reach full potential. This is all found using primary and secondary resources.