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Reasons for success in ASDA acquisition:

1. Mirroring Strategy:
a. Similar strategies of increasing sales area by removing
stockroom space and increasing non-food sales area
(clothes & electronics). Therefore, product lines could be
expanded.
b. Wal-mart strategies CEO: When we were acquired, it
was like acquiring a clone
c. Shared Wal-Marts everyday low prices culture.
2. Size of ASDA stores is higher on average than in the other UK
retailers
3. Difference with other chains taken over by Wal-Mart in
Germany and Canada:
a. Chains in Germany were relatively small and in decline
while ASDA had a good, solid business.
b. The price position of chains in Germany was low leaving
less scope for differentiation on price.
4. ASDA brought benefits to Wal-Mart with their strong
established George brand for clothes.
5. The largest store format was renamed Asda Wal-Mart
Supercentre.(Most located north of the UK)
6. After 2004, market share collapsed due to regulations
preventing out-of-town shopping developments, which
is what Wal-Mart was trying to focus on.

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