STRATEGIC THINKING

MBA Strategic Thinking



Strategic Thinking

Introduction

Asda currently is amongst the biggest super market retailing chain in UK, which mainly comprises of almost all the necessities of a common household. Asda entails a fascinating history, before Wal-Mart bought ASDA, and made its wholly owned subsidiary. It was 1965, when two brothers, belonging to Yorkshire, formed the Asda stores Ltd. At the outset the objective of establishing a shop, was merely to provide residents with the Fresh products. Although it was a slow and gradual process of acquisition and the building of shops, yet Asda was successful in turning itself from mere one initial Small store to a lucrative chain of supermarkets in the significant locations of UK. After MFI Merged with asda in the year 1985 and sold MFI after two years for a lucrative amount of almost US $800 million; it was from there that Asda started to impart new introductions into the line of products and brands it earlier possessed. Amongst the extensions, was the launch of a new apparel range, under the brand name of George. The brand was earlier available in only a few of its stores; however, later it became the limelight of every asda store.

In 1999 asda became a subsidiary of Wal-Mart and Tesco and merged with Kingfisher plc, after that merger Asda's headquarter was at asda house which was newly opened at that time. Asda sold Corinth to Wal-Mart in 2009, but it remained under the control of Wal-Mart as Corinth is also a subsidiary of Wal-Mart. Asda bought Netto's UK operations as well as Focus DIY. Asda is promoting itself under the slogan of Britain's lowest priced supermarket. Around 16.5% UK, grocery shoppers haven considered asda as their main shop in 2010 as it gives exceptional discount; offers to their customers. In UK, asda has 321 stores with 148 thousand colleagues and it is also the second largest store. It has both the internal stakeholder as well as the external stakeholder. These stakeholders give benefits in a variety of ways. For retaining and increasing customers asda is using many methods and it is gaining customer loyalty.

The fate of Asda took an entirely new turn, when the retail Giant of America Wal-Mart completely acquired Asda for almost £ 6.7 billion; and made itself an integral part of the world's renowned and profitable supermarket retailer. After that Asda kept on travelling on the course of development and progress, opening over 250 stores in specified locations, introducing new and innovative product lines, as well as launching its official website, which comprised of almost all the products that their actual stores encompassed (Asseal, 2003, pp. 45). Currently Asda is in a position where it possesses 377 stores, comprising primarily of household items and apparels. Headquarter of Asda is in Leeds; and this broad range of stores employs over 170,000 dedicated employees.

Porter's Generic Competitive Strategy and tactics

Asda ever since its inception has performed diligently and restlessly to earn itself the position of one of the Giants ...