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Growth Strategies Case Study
Case Title:
ASDA: Betting on Low Prices?
Publication Year : 2005
Authors: Jaisri Shekhar, Susmita Nandi
Industry: Grocery Retail
Region: USA
Case Code: GRS0110
Teaching Note: Available
Structured Assignment: Available
OR
Abstract:
ASDA, since its takeover by Wal-Mart in 1999, has been implementing several successful strategies, including the 'price rollback' and 'Every Day Low Prices' to attract customers. It has been, for eight successive years, ranked as the 'cheapest supermarket' by the Grocer, an independent magazine in the UK. However, continuous lowering of prices has reduced the profit margins of ASDA and led to a severe price war in the UK retail industry. ASDA has announced plans to diversify into non-food stores and financial services to improve profitability.
Pedagogical Objectives:
- To highlight competitive landscape of the British retail industry
- To discuss the competitive strategies adopted by ASDA and the challenges faced by it in the retail sector.
Contents :
British Retail Industry:ABrief Landscape
ASDA– Britain’s Cheapest Supermarket Chain
Wal-Mart andASDAin 1999:AComparison
Future Challenges
UK Grocery Market: 12Weeks to May 22
Keywords : ASDA; Wal-Mart; Retailing; ‘Every Day Low Prices’; Price war; Supermarkets; Tesco; ‘Price rollback’; UK; Consolidation in UK retail sector; Acquisitions; Grocery retail; Strategy; Growth Strategies Case Study; Discount retail chain
