In What Ways Have ASDA Maintained Competitive Advantage?

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In What Ways Have ASDA Maintained Competitive Advantage?

    The supermarket industry is fiercely competitive and is currently dominated by the “Big Three” companies:  Sainsbury’s, Tesco and ASDA.  To ensure that they remain in these three, it is important that each company gains and maintains their own competitive advantage.  So, in what ways does ASDA do this?

    The three main factors that help ASDA maintain a competitive advantage are:

  • Reputation
  • Advertising
  • Market Research

    ASDA is well known for being the friendliest and cheapest supermarket.  Customers can expect the legendary ‘service with personality’ from all employees and the products they want at the lowest prices.  This reputation is invaluable as it is the main reason why people shop and continue to shop at ASDA.

    To maintain this competitive advantage, ASDA make sure that their staff are as helpful as possible and regularly check to ensure that they are.  All members of staff also wear “Happy To Help” badges to make them more approachable.  ASDA try to emphasise this as much as possible, even one of their popular slogans is, “Always Happy To Help”.

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    To ensure that they also have the lowest prices possible, ASDA hire employees to ‘price check’ at rival supermarket chains.  This has proven to be effective as they have been awarded the title of “Britain’s Best Value Supermarket” for the fifth consecutive year.  Since 1999, ASDA have cut their prices by around £0.5 billion.  Customers obviously recognise and value this as they continue to shop at ASDA.

    ASDA utilise advertising as an extremely powerful tool to attract customers.  ASDA air more television commercials during daytime than any of their main  competitors.  They use this ...

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