Sainsbury Case Study: Largest UK Supermarket Chain - Essay.

Discuss about the Case Study of Sainsbury a largest supermarket chain based Company in the United Kingdom.

Different Acquisitions of Sainsbury

The entire presentation has been done on Sainsbury’s that is the largest supermarket chain based and situated in United Kingdom. From the details, I have been able to analyze that the respective supermarket has acquired more than 16.9% share in the entire sector of supermarket and Argos has been acquired by Sainsbury in the year 1869 as well.  

Furthermore, I have been able to analyze that there is strategic alliance between Argos and Sainsbury and this has been noticed that there are four major types of acquisitions namely vertical, horizontal, conglomerate and concentric. Lastly, Sainsbury has tried to overtake or acquire Argos in such a manner that the company has been able to maintain their competitive position effectively in the entire market and this has helped the company in managing their sales and profit ratios in an effective manner as well.

Additionally, I have come to understand that the horizontal kind of acquisitions have different kinds of benefits to both the firms namely Argos and Sainsbury that included to improve the overall efficiency, reduced the external kind of competition along with the economies of scale as well (Vele Cristian-Liviu 2013). It has been noticed that Sainsbury has bid for Argos for different kinds of reasons that included that this will help Sainsbury in increasing the size of retail industry, to utilize the technology as to improve the overall experience of the different customers in an effective manner as well. Furthermore, this will help in protecting their overall market position as well.

Furthermore, this will create leading food and non-food retailer of the choice of the customers wherein it has been seen that more than 2/3 of the households in United Kingdom have shopped at Sainsbury over the last few years. Furthermore, it has been noticed that more than 2/3 of the households in United Kingdom shopped at Argos over the last one year and more than 40% of the population of UK have shopped in both Argos and Sainsbury. It has been seen and I have noticed from the case study that the main ambition of Sainsbury was to increase their market share in the entire economy and this will help them in increasing the market share through acquiring Argos appropriately with the usage of matrix (Karen Gately 2017).

It has been noticed that the organization Sainsbury will be in a position to offer more than 10000 kinds of products from more than 2000 stores and from the graph below it can be seen that there have been huge swings in the share price of Sainsbury in the past few years as well. Furthermore, Sainsbury has started using different technology as to improve the customer service in an efficient manner. The main plan of Sainsbury is to use the technology in different ways as this will benefit both the customers along with the retailer (Verbeke 2013).

Usage of Technology by Sainsbury

It has been analyzed that the different retailers in the entire competitive market had plans to introduce the electronic shopping lists as to make the entire shopping experience more affordable and easy for the different individuals in the entire competitive economy. I feel that Sainsbury needs to adopt the different kinds of digital or online shopping platform for the different customers in the market as this will help them in managing the experience of the customers and help the customers in gaining more competitive advantage in the entire market that is competitive in nature.

I felt that during the time of purchase, the entire retail industry was experiencing the reduced amount of profitability and sales in the market. I have analyzed that as per the CEO of Sainsbury, the entire industry of supermarket was becoming competitive and successful in the present scenario and this caused huge competitiveness for Sainsbury as they were not being able to cope up with such differences in an easy manner as well.

Furthermore, it has been noticed that the operators were different in nature and it was seen that since Sainsbury has acquired Argos in the entire competitive market, they have gained the defending position in the competitive market and this led to more stiff kind of competition in the entire economy as well in the entire retail industry as well.

It has been analyzed that in order to assess the best way and manner in which Sainsbury has been able to acquire and integrate with Argos include that the respective matrix can be used by Sainsbury in order to analyze the strategic interdependence and need for the entire organizational autonomy. Furthermore, it has been seen and noticed that there are major factors that will help in deciding the different kinds of score that is gained or lost. The different acquisition integration approaches are required to be analyzed by Sainsbury that includes preservation, absorption, holding and symbiosis.

Conclusion

Therefore, it can be concluded that the entire retail industry in the market of United Kingdom is towards the downwards trend with the other leading players in the competitive market. Furthermore, it has been seen that the companies or the retail companies in the UK market are reporting reduced kind of sales along with profits that is affecting their brand image in the entire economy.

It has been noticed that Sainsbury needs to continue focusing on the key business activities as this will help the company in gaining more competitive advantage and focus more on gaining profitability in the economy as well. Lastly, while maintaining the business activities and processes of Argos, it is essential in nature for the company to record their online sales in the market and this will help the company in managing the different sales and profitability or losses in an effectual manner. Lastly, it has been seen that the company has recorded online sales during the period of Christmas in the year 2015 and this will help in managing the different kinds of issues in an effective manner.

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