Table of ContentsASDA's Competitive AdvantageCorporate BackgroundCorporate Mission, Purpose and ValuesCompetitive AdvantageLow Pricing StrategyFocus on Parties' Needs StakeholdersCommunity ProgramsProduct BrandQuality Culture and Promoting a Safe EnvironmentTechnology as a Tool for Competitive AdvantageASD Competitive AdvantageOne of the major challenges facing businesses today is how to understand the needs, requirements and concerns of their customers in order to create and generate products and services that can enable them to obtain a competitive advantage. Strategic management in a business plays a crucial role in ensuring that the business will be able to survive in the long term (Barnes 3). Long-term survival for an organization means that it can achieve successes that can enable it to achieve its goals by ensuring that it achieves a competitive advantage over its competitors, as well as following the appropriate strategies at the level commercial (Beer and Nohria 15). Say no to plagiarism. Get a Tailored Essay on “Why Violent Video Games Should Not Be Banned”?Get an Original EssayA business strategy targets the overall competitive theme a company chooses to allow it to emphasize how it positions itself on the market. . This allows a company to achieve competitive advantage and position different strategies that a company can adopt in various business environments. For example, corporate level strategies or competitive strategy is an essential subsystem of business strategy (Barnes and Norris 15). It refers to a set of coordinated and integrated activities that contribute to exploiting core competencies and achieving competitive advantage. In this case, it is true that a company adopts coordinated and integrated actions to enable it to exploit its core competencies and achieve competitive advantage (Barnes 5). Competitive advantages are those that determine the success of a company in the railway sector. It depends on a company's capabilities, resources and core competencies. This is possible because it is the role of the manager to control and implement supporting activities that create space for competitive advantage (Barnes and Norris 17). An organization is said to have gained a competitive advantage when it has characteristics that differentiate it from its competitors, which then enable it to achieve high returns in a sustainable manner. Therefore, a competitive advantage constitutes a good image for a company and an additional feature for a product or service that a company offers to its consumers, as well as a preferred location and a lower price than its competitors can offer ( Beer and Nohria 18). ). This article will explore the role of competitive advantage in the success of ASDA in Manchester. Company Background ASDA Stores Ltd was established in 1965 in Yorkshire, England by JW Hindel. During this period, the company engaged in selling a wide range of food and non-food items at a very low price. It has started to strengthen its operations by increasing the number of stores it owns in the United Kingdom. By 1978, ASDA had around 60 stores and its stores had managed to achieve a turnover amounting to £1 billion by 1980 (Thompson and Martin 54). Later, the company added furniture and carpets to its product portfolio through mergers and acquisitions. However,the company incurred huge debts when entering into these deals, which put a strain on the company's financial resources. ASDA split in 1987 when it sold its MFI status to MFI managers. After moving into the sale of MFI and Allied carpets, the company changed its name to ASDA Group plc (Robertson and Caldart 65). ASDA opened its first store in the south of Britain in 1989. In 1990, it launched its own private clothing brand called George, and distributed it across its 65 stores to help it strengthen its clothing segment, and also enable it to compete effectively with Marks & Spencer. The following year, the company acquired the Gateway stores for £705 million, which subsequently strained its financial resources (Robertson and Caldart 24). Analysts believed the problem was a result of overpayments by ASDA to these out-of-town outlets and other second-class sites. When the company began to realize the decline in profits it was making, it began to raise the prices of its products and abandon its low-price strategy, on which its previous success was based (Thompson and Martin 22 ). Indeed, the company was facing difficulties in coping with intense price cuts and tough competition posed by other dominant market players such as Sainsbury and Tesco. In early 1991, ASDA appointed Archie Norman to help transform the market. the company falls around. Norman took the company back to its original iteration as a food retail chain and made its products more affordable than its competitors by emphasizing simple processes rather than loyalty programs ( Harrison 13). She grew her business by going public in 191 and 1993. In 1999, ASDA made profits amounting to £405 million after having a turnover of £8 billion (Khosrowpour 21). In 1999, Walmart was looking for ways to expand its locations. , and decided to enter the British retail market and bought ASDA for 220 pence for each share. This acquisition was expected to enable the company to have a significant impact on both the UK retention sector and financial markets (Addy, http://www.foodmanufacture.co.uk). As ASDA then adopted a low price strategy, it was able to attract a significant number of British consumers. As a result, the post-acquisition process did not experience any problems since Walmart was also pursuing a low price strategy (Khosrowpour 22). Today, ASDA is considered the second largest retailer in the United Kingdom. It is also the largest subsidiary of the Walmart family of companies. The size of ASDA is judged by the number of stores it runs and the people who work there. For example, ASDA has around 321 stores in the UK and Northern Ireland, 29 depots and around 148,000 colleagues. It is these establishments that allow the company to achieve a turnover of more than 15 billion pounds (Addy, http://www.foodmanufacture.co.uk). In recent years, most colleagues in ASDA depots and stores have tended to become more involved in the community to help raise money for charity (Ashley-Roberts, http://www.simplydigitalmarketing.com ). This initiative allowed the company to become more involved in the community and improve how it meets its mission, vision, and purpose (Brinkman, Navarro, and Harper, 87). Additionally, the supermarket sector in the UK is becoming very competitive. These are the competitions that take place betweenthese competitors who allow the company to keep its prices low. The company also makes sure to produce the products that are in high demand in the market and for which consumers have a deep taste (Harrison 65). However, with so many stores to buy from, estimates reveal that customers are becoming less and less loyal. Additionally, price competition drives customers to try new stores (Ashley-Roberts, http://www.simplydigitalmarketing.com). Most customers prefer price competition because it allows them to purchase products at a relatively lower price and save money. The slogan associated with the ASDA price allowed customers to connect to the store at the low price offered by the company. However, whenever modern consumers decide where to purchase their products, a wide range of motivations influence their choice (Brinkman, Navarro, and Harper 54). Therefore, for ASDA to achieve these goals effectively in this way, it must develop a business strategy that allows it to distinguish its stores (BusinessCaseStudies, http://businesscasestudies.co.uk). This can enable it to achieve a clear competitive advantage. In the modern business environment, ASDA mainly engages in price competition, but it also engages in other forms of non-price competition, as well as its community benefit to create a positive image in the mind of its customers (Brunn, 34).Company Mission, Purpose and ValuesThe leaders of a particular company are expected to emphasize its mission, vision and values ​​in order to influence its journey. This is how ASDA works to strengthen its competitiveness in the market. Statements made by the company are intended to enable the company to help its stakeholders understand the direction the company is taking. A mission statement aims to define the overall long-term direction that an organization follows. ASDA's mission is “to become Britain's best value retailer, always going beyond customer needs” (BusinessCaseStudies, http://businesscasestudies.co.uk). Additionally, as well as having a mission statement, ASDA has a statement of intent. This allows business stakeholders to better understand the reasons for closing the business. ASDA’s aim is to “make services more accessible to everyone”. Additionally, ASDA adopts a series of values, which serve as moral statements that allow it to summarize its beliefs, which then determine the actions and decisions it makes in the market. The company's values ​​are respect for individuals, the pursuit of excellence and the provision of high quality services to its customers (Researchomatic, http://www.researchomatic.com). To ensure that new colleagues at ASDA gain a better understanding of the company's mission statement, purpose and values, they benefit from a 25-hour induction program known as 'Best welcome ". Through the intranet, the company can undertake a survey that helps it determine how colleagues, departments, teams and managers are following the mission, purpose and values ​​while making decisions within the company. company (Researchomatic, http://www.researchomatic.com).Competitive advantageLow pricing strategyAs the second largest company in the UK, ASDA is embracing a new era. Its market share is 16.9 percent, behind Tesco with 30.5 percent. Like its parent company, ASDA is committed to adopting an Everyday Low Price (EDLP) strategy rather than adopting the traditional high-low pricing mechanism adopted in various other stores in the grocery market. It's thiscommitment to EDLP that enables the company to achieve success in the market (Monaghan, http://www.theguardian.com). ASDA was the first retail company to offer its customers a price promise by introducing its ASDA Price. Guarantee from 2010. Here, the company promised to beat the prices charged by its competitors by 10 percent. Since then, Waitrose and Sainsbury have launched initiatives that may allow them to price match branded products. Tesco then introduced its price promise which allowed it to match its own brand products with its own brand products (Monaghan, http://www.theguardian.com). Since most of its competitors are moving to adopt its low price strategy, ASDA is expected to adopt new strategies to help it face a highly competitive market. ASDA faces two major marketing challenges. This includes effectively communicating its ELDP positioning in a highly competitive market and its internal team structure to leverage the most talented people within the business (EssayUK, http://www.essay .uk.com).The challenges facing the business have evolved at a rapid pace over the past year. The major problem in this case is to communicate EDLP to enable it to break into the bundled market. It is therefore crucial for the company to market its EDLP structure to ensure that it is successful in the market (EssayUK, http://www.essay.uk.com). ASDA has adopted a differential strategy to enable it to beat the market. price that its competitors set in the market. However, its competitors, such as Waitrose, Sainsbury and Tesco, compete with the company by matching the lowest prices prevailing in the market (Dransfield 35). However, the major challenges in this case are creating a meaningful personality in the case of the EDLP message and building more narrative with regards to communicating the strategy (John, http://community.businessballs.com). Most of the creative campaigns that ASDA has practiced in the past have been successful. However, they left a bridge that needs to be crossed in order to engage people who don't shop at ASDA and develop an emotional understanding of the company's brand (John, http://community.businessballs. com).Most people who shop at ASDA are generally brand loyal. For example, in December 2012, several people complained about the sexist nature of the portrayal of a mother who did all the work during the seasonal period (Corporate Watch, http://www.corporatewatch.org). This issue was heavily criticized on social media and sparked around 620 complaints, although the campaign was ultimately shut down. However, the supermarket's public relations and communications team wanted to quell the furor since most of its loyal customers defended and offered the message of supporting the supermarket (Dransfield 32). Strong emphasis on stakeholder needs. Any group, organization or group that is influenced by the activities in which the company engages is called a stakeholder. Internal stakeholders are typically found within a company, such as managers, directors, and co-workers. Conversely, external stakeholders are typically found outside of an organization. Each of these groups is affected by actions taken by ASDA (Corporate Watch, http://www.corporatewatch.org). For example, ASDA customers demand quality products at low prices. Today, most customers generally have high expectations from a company and invite them to participate in the company's activities.local community. This allows them to have a better idea of ​​themselves and the operations they are embarking on. Most ASDA depots and stores have community notice boards as well as a monthly magazine showcasing activities happening in the community. This encourages customers to become more attracted to the company and show loyalty (Ruddick, http://www.telegraph.co.uk). Most colleagues enjoy serving the needs of the community where they conduct business. The retail industry does not benefit from high payments, customers demand low prices and operations require a large number of colleagues (Baker, http://www.marketingweek.co.uk). This means that working with the community plays a vital role in terms of motivating colleagues. To motivate other members of the community to take part in this initiative, ASDA organizes events which are shared in a monthly newsletter which caters to internal needs (Ruddick, http://www.telegraph.co.uk ). shareholders generally demand a good return on the investments they make in a particular organization. They also believe in responding to the interests of the community, as they like to see the company they have invested in acting positively towards the environment. This means that as ASDA continues to remain a profitable company in the market, more people will invest in it, which will help build a reputation for the company, which will in turn help to significantly increase its customer base (Baker , http://www.marketingweek.co.uk). Nationally, suppliers make up the largest suppliers to ASDA. They are always looking for ways that can allow them to sell gods to ASDA in large volume to allow them to achieve economies of scale. As a result, ASDA has worked very hard to develop links with local suppliers. By working with small and medium sized businesses, ASDA finds it possible to offer products to small groups on terms that interest them (Ruddick, http://www.telegraph.co.uk). Community programs ASDA adopts its community programs to help it achieve its mission, purpose and values ​​effectively. The company does this to enable it to remain unique from its competitors and to motivate its colleagues. This program has been running for seven years and is central to depots, stores and head office. The actions they engage in are determined by five criteria, including health, people, education, major events and community (UKEssays, http://www.ukessays.com). Each of these criteria serves as a focal point for the annual program activities in which the company engages. The local events coordinator is the one responsible for setting up each store as activities approach. For example, under health criteria, ASDA depots and stores get involved in fundraising to help support breast cancer campaigns and breast cancer care (Addy, http://www. foodmanufacture.co.uk). It was customers and colleagues who served as blood donors. To facilitate this initiative, ASDA encourages the installation of blood donor trucks in their car parks, ensures that services are accessible to every person in the community and provides them with nutritional and diet advice (UKEssays, http: // www.ukessays.com).The Community Program enables ASDA to deliver on its mission, purpose and values, as well as gain a competitive advantage in the market. This program allows colleagues to participate in local community activities,since they also live there. The process of collaborating with other people illustrates the value the company places on its stakeholders. This then gives them moral guidance, which allows them to plan a direction for the business (UKEssays, http://www.ukessays.com). Under the ASDA Community Scheme, customers can enjoy a wide range of benefits, especially those that focus on local needs. Colleagues in this business are getting involved to help raise funds for the company. A major example is the Brake Walking Bus, a road safety charity which teaches school children about road safety and helps them walk to school safely. ASDA made this initiative a world record when more than 50,000 children took part in 2012 (Gregory and Willis, 67). Additionally, ASDA participates in the sourcing of local products to meet the needs of customers and suppliers in specific areas, and also participates in campaigns related to the recycling of local products. Most ASDA colleagues spend a significant number of hours outside of stores helping the community in areas where they need help. Other benefits associated with this initiative target broader causes such as those related to the Pakistan earthquake and tsunami appeals (Gregory and Willis, 68). Having been allowed to take part in this initiative, ASDA colleagues feel very valued. For example, based on a We're Listening survey, it was clear that this practice reflected how they really felt about the organization. By working in the community, colleagues were able to achieve great motivation (Kay 101). Various issues played a vital role in motivating ASDA colleagues. First, in terms of action, co-workers feel that their role is not only to go to work and earn money, but also to help the community (Gregory and Willis, 70). In terms of recognition, The stores are ranked based on the initiatives they undertake towards the community. Every year, ASDA colleagues set out to improve community programs to help stores achieve higher ratings. In the case of the initiative, colleagues are encouraged to set SMART goals. This means that the goals they set must be specific, measurable, achievable, realistic, and timely to facilitate effective community participation (Kay 103). Colleagues are encouraged to design the most effective way to achieve their goals. This means that they are not told what to do, but have the freedom to use their own ideas to enable the community to make a profit and make appropriate choices about what to do. who can effectively meet their needs (Wood, http://essentialmarketingplanning.blogspot.com). In areas where colleagues feel highly motivated, their turnover decreases as do the subsequent costs of training new ones. It also allows them to feel high values ​​and thus inspires them to work in a way that meets the mission, purpose and values ​​of ASDA. This also plays a crucial role in strengthening ASDA's competitive advantage (Wood, http://essentialmarketingplanning.blogspot.com). Product brandingBased on a survey of the UK retail market in 2004, sales in this sector were estimated to be around £246 billion. This indicates that the retail sector continues to show positive signs of growth. Furthermore,The retail sector in all countries is very active, especially since this sector is evolving at a rapid pace. As a result, it constitutes one of the major sectors of any economy, especially with regard to turnover and transactions (Barnes 55). As a result, this sector is very sophisticated and highly competitive. Branding is extremely crucial, especially in the case of the UK retail sector. Today, ASDA is adopting a strategy it launched in 2010 after relaunching its mid-range product range under the revolutionary 'Chosen by You' brand to enable it to improve perceptions of the quality of the foods it sells. she delivers to her customers. This new range is part of a $100 million investment targeting around 200,000 customers in the UK, including benchmarking and product testing (Brohan, http://www.internetretailer. com). ASDA has also decided to launch its opticians business which adopts similar logos as well as slogans which establish indirect contact with the chain. To facilitate this initiative, ASDA undertook campaigns featuring two slogans. These include 'Be a True Spec Saver at ASDA' and Spec Saver at ASDA'. These strategies should enable ASDA to achieve customer satisfaction (Brohan, http://www.internetretailer.com). However, although ASDA is experiencing continued growth in terms of its diversification initiatives and expansion of existing stores, the retail market has become very competitive and holds less of a share that can influence the overall ranking as well as positioning. of the company in the international market. From this perspective, it is crucial to evaluate ASDA's strategic position and compare it with other retailers in the UK in order to strengthen its position in this highly competitive market to enable it achieve sufficient customer satisfaction as well than their loyalty. (Brinkman, Navarro and Harper 89). Under the same brand, ASDA offers its customers financial services including insurance cards and loans, insurance, savings, energy supply and car breakdown cover. Based on a report done by the BBC in 2010, it was revealed that ASDA was considering buying Netto for £778 million. Netto has approximately 193 stores in the UK and continued to operate under Netto until mid-2011, when the name changed to ASDA (Management Paradise, http://www.managementparadise.com). ASDA does promoting its brand on an ongoing basis and announced to its customers that they would benefit from low prices in a wider range of products and would be complemented by a wide range of services that the company will offer in its small stores. For example, the ASDA brand "George", which the company purchased in 1995, has become the largest clothing brand in the UK by volume. Walmart also markets this brand internationally (Management Paradise, http://www.managementparadise.com). Culture of quality and promotion of a safe environment. Organizational culture describes how beliefs, values, and assumptions are deemed appropriate to facilitate thinking. as acting within a company. Because it is shared by the predominant elements within an organization, culture plays a vital role in helping to resolve and understand extrinsic and intrinsic problems. Some of the major organizational rituals conducted daily within a company include awards, staff meetings and evaluation processes (Management Paradise,http://www.managementparadise.com). This confirms that most activities undertaken by companies are rituals based on proportion. In the case of ASDA, the working environment is different to that of any other place as there are a variety of ways in which the organization ensures its culture remains unique. . For example, all employees in the company are supposed to wear a name badge and they also hold daily meetings in which they are supposed to update each other on their performance (Khosrowpour, 99). Additionally, company members work as one team and put customer needs first. Additionally, they take care of their colleagues every day to ensure that they give their best while working within the organization. This is one of the main reasons why ASDA has remained at the forefront when it comes to the performance of its employees and colleagues (Uni Assignment, http://www.uniassignment.com). ASDA colleagues treat customers like customers. at the heart of everything the company does. They believe that their main role is to ensure that the goods they offer them are as affordable as possible. Additionally, they follow a culture that makes all these initiatives possible. Indeed, the culture allows them to work as a single team in order to offer optimal support to their stores, to benefit from the strengths and expertise of their colleagues as well as to share the successes that each one achieves (Uni Assignment, http: //www.uniassignment.com).When it comes to attitude, ASDA encourages its employees to develop a positive and engaged attitude, which means they may be able to quickly implement big ideas within the company. the company. This is primarily aimed at the question of how they can undertake tasks rather than looking for reasons to avoid them. Additionally, ASDA provides group meetings for company employees, which serve to keep them informed about how the organization is operating (Haystack, http://www.haystackonline.com). This involves how they describe and communicate their daily life activities to keep them focused on similar goals. It also allows them to recognize and celebrate the successes of the team and individuals in general. All ASDA staff, whether they work at ASDA House, the general store or the head office, are expected to carry their name. badges. They are involved in this initiative because they believe that a person is more accessible when called by their first name. In this case, employees can communicate freely with each other and customers can also address employees without hesitation. As a result, customers of the organization develop a positive image towards it and tend to become loyal to the company (Haystack, http://www.haystackonline.com). ASDA hosts The Big Lunch, which serves as a quarterly meeting within the company. It takes place within ASDA and provides colleagues with the opportunity to share crucial information in a way that is considered fun, relaxed and unusual, ensuring that everyone in the business can receive important information. within the organization (Haystack, http://www.haystackonline.com). ASDA staff are not required to wear jackets. Indeed, the company believes that the jackets constitute an obstacle to accessibility. As a result, whenever a person becomes a member of ASDA, they hope to save on dry cleaning bills. ASDA also has a '10 foot rule', which most people consider mysterious. However, it is a concept.