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Introduction
ASDA operates under the ownership from Wal-Mart and deals in grocery and wide-ranging commodities. ASDA operates in the UK and provides its customers with a wide range of commodities and services. The company possesses a diversified portfolio in its operations that assists the company in targeting diverse consumer segments. The SWOT analysis of ASDA offers comprehensive details of the success factors of the company together with its constraints.
ASDA has several strengths that include diversified merchandise and service offerings for instance, financial services that allow customers to gain insight on matters relating to finances. The company has a strong brand, considering the effectiveness of its marketing campaigns in creating customer awareness. The company maintains constant contact with its customers through various ways that include social networks, feedback systems and constant competitions among its consumers (Wood, 2012).
The company engages in CSR activities that improve social relations with the society thus augmenting societal support. The company has over 500 stores, which makes it profit from economies of scale. ASDA possesses numerous resources from Wal-Mart that ensure that the company runs without financial constraints even during economic crises. It opens long hours and service delivery is excellent considering the number of workers under its stores.
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The weaknesses include the complexities involved in the control considering the magnitude of services to customers. The company has little investments globally relative to its competitors, which can be considered a limiting factor. The company cannot engage in monopolistic practices, owing to the UK and EU legislations. The company manages to sell its merchandise at low prices at the domestic level, but has not engaged in international business due to fear for rivalry from other companies.
The opportunities include expansion to other regions through franchises and joint ventures to cut on costs, engaging in online transactions on its financial services and home shopping, offering other services for instance cybercafés and fax services. The threats that exist include strong competition from rivals; rising costs associated with minimum wage, low business due to online shopping and reduce choice on merchandise and service offerings (Wood, 2012).