Question

Topic: Student Questions

Pestel Analysis Of Asda?

Posted by Anonymous on 3/1/2007 at 10:27 AM ET 25 Points
i had few ideas on the PESTEL & SWOT analysis, could u provide anymore. tanhkyou

PESTEL analysis of Asda

Political
Competition commission
Competitive industry
The National Minimum Wage

Economic
Assisting people entering and re-entering the job market
Maximise the contribution of local and regional economies
Disposable income

Social
Lifestyle
Charity – benefits to the community

Technological
Self-scanning
Electronic point of scale
Chip & Pin

Environmental
Pursuing environmentally friendly strategies i.e. focused on recycling

Legal
Health & Safety
Data protection
Working hours restriction
Challenge 21





SWOT analysis of Asda

Strengths
Powerful retail brand and good position in the market
Pursue low pricing strategy
Wide range of products
Number of stores increasing
Financial resources
Weaknesses

Opportunities
To take over, merge or form strategic alliances with other global retailer i.e. Europe or china.

Threats
May face threats from Sainsbury’s, since their market share (16.5%) is not far from Asda’s market share, which is 16.8%.
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RESPONSES

  • Posted by steven.alker on 3/14/2007 at 2:49 PM Accepted
    Here’s a few extra’s – ASDA was the darling of the North until it was taken over by Wal-Mart! It’s still a fine supermarket, but could do with Archie Norman going back to run it. I don’t know where you’d factor the last piece of opinion into PESTEL, but under SWOT it comes under Weaknesses and Opportunities!!

    Political: New labour hates Wal-Mart. ASDA didn’t employ people at the minimum wage until the take over. It has been voted one of the best companies to work for in the past and it isn’t any longer in the top 100.

    Economic: Driver in the local economy – one of the few supermarkets to offer local suppliers. Referral programme offering commission for website owners.

    Social: I think that your listed benefits are becoming historic listed benefits! Wal-Mart is not renowned for its social conscience.

    Technological: Innovation in logistics and little else. ASDA has hardly moved on since the Norman days!

    Environmental: They have little these days in the form of a coordinated environmental policy. I don’t think that the new owners give a toss beyond the PR benefits.

    Legal: Challenging the unions – something which wasn’t necessary before!

    And no, I don’t dislike Wal-Mart. In fact as a successful company, I admire them. I just think that ASDA were better off as an independent company.

    Best wishes

    Steve Alker
    Unimax Solutions

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