ASDA

ASDA

ASDA

Question One

Ansoff matrix

Ansoff Matrix offers strategic choices to achieve goals. This matrix is ??divided into four broad categories: market penetration, market development, product development, and diversification.

Fig. 1 Ansoff Matrix

1) Market Penetration Strategy

We consider existing products sold to existing customers. This means that ASDA seek to increase their revenues by promoting product or repositioning brands. Attention in this case, the product not been amended and they do not seek any new customer.

2) Product Development Strategy

We consider an existing product line into a new market. This means that the product remains the same while being sold to a new target. The export of ASDA product or its sale to a new area are examples of market development (Parnell, 2006, p1139).

3) Market Development Strategy

This is a new product to launch on an existing market. ASDA develops and innovates new products to replace existing ones. Such products are then sold to existing customers. This happens often on the automotive market where existing models are updated or replaced and are then sold on the market today (Zenta, 2007, p88).

4) Product Development

Product Development is an entire process of creating and bringing a new product to market. ASDA partners with others in order to develop their products, which they then sell to the final consumers. An example of this can be between ASDA and Leths School of Food and Wine (Zenta, 2007, p88).

5) Diversification Strategy

Diversification is the most risky of the four growth strategies since it requires both product and market development and may be outside the core competencies of the firm (Kotler, 2001, P78). To ensure that the differentiation strategy is carried out, there are various tactics that ASDA will need to undertake. What the company needs to do though, is to ensure that they are always a step ahead of their competition in all aspects, by expanding services offered to their customers. ASDA has a website that offers information about the company. However, it does not have a portal to which customers can order their groceries online, and have it picked up or even delivered. As time goes by, people have less time to go to the supermarket as they are always on the go. Social networking is also a trend, and many businesses are now using this medium as a means of advertising their products, and also to create an atmosphere whereby they can have a closer knotted relationship with customers.

Corporate strategy

The retailing industry is highly competitive and ASDA is acting according to changing business environment and adopting new business strategies to improve its market position by increasing its market share and will focus on New Market Development (Kotler, 2001, p78).

Sustainable Competitive Advantage

ASDA is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store. ASDA has grown substantially in recent years, the expansion and has the local experience (e.g. ASDA focuses on expanding its stores in the parks edge of town retail also plans to open another 20 outlets in the ...