Managing Capabilities Essay Example | Topics and Well Written Essays - 2750 words

Managing Capabilities - Essay Example The adoption of new technology on regular intervals has boosted the marketing capabilities of ASDA. For any organization to stay competitive in the world it is very important to adopt the strategic changes. For ASDA the distribution channel in connection with the internet by online stores has helped the company a lot to expand the range of services and providing the customers with various purchasing options. Another approach used by ASDA that enhances its overall capabilities is the process of acquiring more information related to the product while the customer is in the process of taking decision. Online services also serve as sales tool. ASDA is the second retail store to offer this online service. ASDA has also brought in structural changes like removing the top layer hierarchy and the freezing wages. This change brought in positive change in the performance of the organization. The transparency has helped the company win the name of the best employer in the UK today. This led to an increase in the shareholder value. ASDA is the second largest supermarket chain in UK and has about 17% of the market share. It is a powerful retailing business and is well reputed for the products it has and the convenience it gives to its customers. The primary focus of ASDA is to save money and keep the costs as low as possible. The company has a strong technology system that supports its operations. If we talk about the weakness of the company so it can be regarded as the lack of convenience stores and the small supermarkets (Ackerman, 1997). Talking about the biggest competition to ASDA that is Tesco it is found out that almost two third of its total... Managing Capabilities Structuring tools and strategy frameworks are main keys to assess the situation of the business. Value trade-offs and risks are made explicit that lead to proposals that are concrete for adding value and reducing the risk. The frameworks that have been discussed in this study and the Pestle analysis in specific are likely to help ASDA in the identification of related laws planning and conform to decrease any distraction associated with them. To retain the customer base ASDA meets the customer needs, customizes the service, ensures lower prices, helps in making better choices, continuous flow of in-store promotions. These analysis will help the company in assessing the possible success for opening new stores, that are small in any area, which is the need to stay in competition. These analyses are likely to assist in identifying the policies, regulations and laws that govern the competition and monopolies. This is a challenge faced by ASDA in its pursuit to expand its business. Under t he European Union law, the unfair competition and the large market share (dominant) can lead to low quality services and products that consequently will increase the prices of services and goods. ASDA needs to keep this in mind as it aims to increase the number of its stores and move to new areas. This study can be of great help for ASDA to maintain its strong position and implementation of the frameworks given in this study can further assist the company to enjoy the heights of success.