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Sainsbury's Competitive Factors

2382 Words10 Pages

INTRODUCTION
J. SAINSBURY’S is a leading retail supermarket founded by John James Sainsbury in 1869 which today became largest chain of supermarkets and operates over 1200 supermarkets across united kingdom .The purpose of this report is to identify strategy of Sainsbury’s for achieving competitive advantage, its environmental factors and strategic recommendations.
TASK 1
FAR ENVIRONMENTAL FACTORS AFFECTING SAINSBURY’S FIGURE 1.1
POLITICAL - Sainsbury’s performance will be greatly affected by the political factors of United Kingdom. As the government and consumer debts being very high presently there, as a result it impacts greatly on attitudes of customers due to …show more content…

As per the last year’s annual report, Sainsbury has a national market share of 16.8% which it was able to maintain even in tough situations of retail environmental as mentioned in Pettinger (2015).Tesco and ASDA are two major competitors of Sainsbury in UK and they both have certain competitive advantage such as focus on their price, value and quality service. Sainsbury has to focus on quality for its own brand products which is dropping slowly year by year. Sainsbury focusing on its quality, provenance and sustainability differentiates it from its …show more content…

Sainsbury has already adopted products and services diversification and these diversification strategies are good for any business because if one business faces bad circumstances the other may not. So, Sainsbury should diversify into new business.

TASK 3
1. Sainsbury has the potential to expand its business in other areas of the world by entering in newly emerging markets like India, china and so on because of having both capabilities such as expertise which can be pursued by moving on to the next level and international expansion, challenging its major competitors like TESCO, ASDA have yet not reached. The best way is to enter by joint venture in new country as it is less risky where Sainsbury can share its industry expertise with any local company and that company will share its local market expertise.

2. Also, Sainsbury has to increase attention towards competitive prices as prices of its competitors are more better so can be achieved by investing more in products that matters most to their customers and participating in price

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