The report focuses on the Strategic analysis of a very well known super market “Sainsbury”. The strategic analysis of the company is carried by using the SWOT analysis and the competitor analysis of the company. Based on the strategic analysis of the company suitable recommendations and conclusion has been drawn for the company. There are lots of competitors of the company that include TESCO and Safeway Plc who have been giving tough competition to the company from time to time.
Sainsbury is a leading organization that was established in the year 1869. The company was founded by John James Sainsbury and his wife Mary Ann in London. The company has 502 chains of supermarkets and around 290 convenient stores. Sainsbury is one of the leading food chain in the UK. The main objective of the company is to provide good returns to its shareholders along with serving their customers so that they feel satisfied. There are about 148,000 employees working in the organization. There are many small scale suppliers who are working directly with the company. The company has been quite successful despite facing many issues like the recession. The main purpose of the company is to provide tasty, fresh and healthy food. It is UK’s oldest store though gradually and slowly many other new stores joined the market to give it a competition. The company tries to provide best services to its customers so that it can keep up with its trusted heritage.
The SWOT analysis includes the Strengths, Weaknesses, opportunities and Strengths of the company. The SWOT analysis of Sainsbury is as follows:
The company reaches its customers with a wide and affordable platform of internet. The companies run a promotional strategy click and collect in about 160 stores where the customers buy online. (J Sainsbury's plc corporate website, 2009)
The leadership team of the company is very experienced. They are provided various training from time to time so that they can lead their subordinates in a proper way.
The company brands are excellent and the advertisement campaigns used by the company for promoting its products are also latest and very attractive that lures the customers and they are induced to buy the products of the company. (Sandler, 2009)
The company keeps on making investment from time to time in the infrastructure and increasing its space so that it can reach its customers easily through various areas.
The company has a loyal customer base who no matter what buy the products of the Sainsbury only.
Established network of outlets (turnaround, 2009)
There are various outlets of the company that are very well established in the point of infrastructure and various facilities.
The company has been facing stiff competition from various competitors due to which the company is negatively affected at times. (M.A, 2007)
The company finds it very difficult to find the suitable employees that are skilled and have positive attitude.
The company relies mostly on the UK market which is considered to be its biggest weaknes.
The communication skills of the employees of the company are limited. The employees communicate very less.
The customer base of the company is quite large. There are lots of customers of the company during festivals and Christmas. (Lynch, 2003)
There are various opportunities available at the disposal of Sainsbury in terms of online marketing as customers these days find it comfortable to shop online. (Ghoshal, 2000)
There are stores opened by the company in China which is the widely growing market. The company is able to reach potential customers with its increasing supermarket space.
The company has a rapidly growing market all over the world. It is focusing on increasing its stores and ,market in various other countries to grab the market. (Miscellaneous, 2014)
There are various major companies that are giving tough competition to the company like TESCO, Wal-mart and Carrefour.
There were many cyber attacks in the past that have led to the loss in the online strategy and it considered to be the biggest threats.
The major competitors of the Sainsbury are TESCO, ASDA group limited and WM Morrison Supermarket PLC. All these companies are providing similar products as that of the Sainsbury and trying to led back it. There are various new strategies that are being followed by the various companies so that they can increase the market share and grab the entire market. (Artichun., 2000)But, Sainsbury is not lacking behind it is giving ng good answer to these competitors by providing quality products to its customers so that it can satisfy its customers. It is seen that the Sainsbury is always a good performer as compared to its competitors. It has always focused on providing different products to its customers. Under the competitor analysis an event analysis was conducted of the company where an event took place on 19th march where the company beat the sales forecast. There was an increase in the total sales of the company by 7.1%.
After carrying on the various analysis of the company it can at last be concluded that the Sainsbury is the best outlet in UK and the customers love the products of the company. As highlighted by the various opportunities available at the disposal of the Sainsbury it can be found that the outside risks like the increasing costs of the material and recession hardly affects the company. There are various new expansion strategies that have been implemented by the company over time to beat its competitors. The company shall make efforts to overcome its weaknesses and work towards the various opportunities that are available in the market. It shall not get its focus affected from its customers. It shall keep on working hard towards the satisfaction of the customers as the customers are the king of the organization and if they feel satisfied then only the company can progress.
Artichun., 2000. Course Hero. [Online] Available at: https://www.coursehero.com/file/10459088/Comparative-Analysis-Research-Paper-of-Wal-Mart-Sainsbury/ [Accessed 17 August 2016].
Ghoshal, S.M.H.Q.J., 2000. The Strategy process, Revised European edition. London: Prentice hall.
J Sainsbury's plc corporate website, 2009. Sainsbury's About us. [Online] Available at: https://www.j-sainsbury.co.uk/index.asp?pageid=12 [Accessed 17 August 2016].
Lynch, R., 2003. Corporate Strategy,. 3rd ed. London: Prentice Hall.
M.A, D.J.a.S., 2007. Fundamentals of marketing. New York: Routledge.
Miscellaneous, 2014. Essay DB.net. [Online] Available at: https://essaydb.net/miscellaneous/234421-business-environment [Accessed 17 August 2016].
Sandler, K., 2009. Sainsbury's to push into non food products.. The wall street journal.
turnaround, T.s., 2009. TNS Global Market Research. [Online] Available at: https://www.tnsglobal.com/_assets/files/worldpanel_marketshare_oct2009.pdf [Accessed 17 August 2016].
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