Internal and External Factors of Sainsbury

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Business environment is the sum of all internal and external factors
that can influence a business and can affect its performance (Jansen,
2017). It consists of all those factors that have a significant influence
on the working of an organisation. Internal factors are the features
which are within the organisation and can be controlled of the
business whereas the external factors are the influences or situations
which are not in the control of businesses but have a great impact on
business decisions and its stakeholders. This report covers PESTLE
Analysis and SWOT Analysis of Sainsbury. It examines the external
and internal factors respectively affecting its business..
Political Factors- Due to increased increased import rates in European
Union the product pricing has increased resulting in loosing a large
customer base to its competitors because of availability of cheap
alternatives. Also there are conditions which affects the market share due
to change in ruling political party within a country.
Economical Factors- With the hike in inflation rate and income of the
customers remaining constant or changes, the buying behaviour of the
customer changes. They demand less products and vice versa in case of
increased income of customers (Shattock, 2017). Also there is a threat of
new entrants that may impact the market share of Sainsbury and increases
competition for sustainability.
Social Factors- Sainsbury provides its customers with some customised
and personalised discounts and benefits which results in increasing the
customer's satisfaction level and saves them from switching their brand.
Its customers tends to buy more then they actually required. It is due to
availability of surprised and unexpected products that a consumer wishes
to buy.
Sainsbury is one of the leading supermarket chain in UK. It was
founded in 1869 in Landon and is the 2nd largest supermarket in UK.
Following are the few internal factors of Sainsbury listed as:
Financial Performance- It has announced the there has been a higher
sales then that was expected irrespective of the disruption caused due
to Covid-19. It has reported a 10.5% hike in its grocery sales and
doubling of the online revenues (Manskikh, 2017). The financial
service business has improved its capital position in comparison to that
of last year. They have increased their market share to a great extent, it
serves about 17.7% of the retail grocery market.
Business Characteristics- It deals in moderate to high product quality
at a reasonable price, but some of the products are charged premium
because of its excellent quality. It has partnered with Nectar Loyalty
Program, which provided it the access the database of 13.5 million
customers, which provides it an opportunity to target its non customers
for improving its customer acquisitions rate. It was a distinctive
business characteristic used by Sainsbury.
Customer Satisfaction- Sainsbury mission and policy is to provide its
customers healthy, safe, tasty food. Quality and fair prices are their
main responsibilities. They emphasises on providing fresh foods and
devote for it by continuous innovation in their supply chain
management (Öhman, 2017). They are much concerned about the
needs and wants of their customers and try to improve the product
quality on regular basis to meet the customer's expectations. This helps
them in maximising the customer's satisfaction and to gain a
competitive advantage over others.
Internal and external environment
INTRODUCTION Internal Factors of Sainsbury External Factors of Sainsbury