Business Strategy for Sainsbury: PESTLE, SWOT, and Competitive Analysis

This report analyzes the business strategy of Sainsbury, an online library for study material, through PESTLE and SWOT analysis, evaluates the competitive environment using Porter’s Five Forces model, and recommends growth strategies. It also includes a strategic management plan with tactical objectives and implementation and evaluation methods.

PRINCIPLES OF
MARKETING

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
PART- A..........................................................................................................................................4
Presenting PESTLE and SWOT of the organization
and an evaluation of the organization’s resources and capabilities............................................4
Critical evaluation of the competitive environment using Porter’s Five
Forces model...............................................................................................................................6
Justification of the organization’s existing and/or potential competitive
advantage....................................................................................................................................8
PART- B..........................................................................................................................................8
Evaluating the different types of strategic directions available to the organization....................8
Recommending the most appropriate growth platform/s and strategies....................................11
Evaluating ways by which the chosen strategies can be monitored..........................................11
REFERENCES .............................................................................................................................13

INTRODUCTION
Business strategy is set of clear plans, actions and goals that helps in identifying how the
particular firm will compete in certain target market. Furthermore, the present report is based on
Sainsbury that is well-known brand that sells variety of goods and services across various
regions. Moreover, the study will analyse the internal and external environment through applying
the PESTLE and SWOT analysis in detail. Also, the study will evaluate the competitive forces
through applying the porter five forces model so that best decisions might be made in the future.
Further, report will apply range of models and theories so that best strategic plan would be
established that will ease the future working of the business across various regions. Lastly, the
study will present the strategic management plan that will allow the cited firm to devise the
effective business plans and assign the best roles and responsibilities to employees that are
working within the firm.
PART- A
Presenting PESTLE and SWOT of the organization
and an evaluation of the organization’s resources and capabilities.
For company like Sainsbury that is operating on large scale it is essential that both micro
and macro environment is analysed properly so that company resources are not wasted. Thus,
below is analysis that will help the firm to identify the factors and take corrective actions.
PESTLE Analysis
Particulars Sainsbury
Political Retail industry is highly affected by the
external environment and if due to any
political reasons there is instability in the any
country than the firm would not be able to sell
the goods in easier manner in target markets
(Sheng and et.al., 2019).
Economical Factors like inflations, import export
restrictions etc. also affects the selling
activities of the firm . Moreover, high level of
inflation would increase prices of goods that is

not good for the company in long run.
Social People nowadays are more concern in adopting
healthy food and organic products and thus
launching such products in the market by
Sainsbury in large quantities would generate
more revenues in the business
Technological New Technology up-gradation and upcoming
of the digital technologies and using the same
would help Sainsbury to attract more
customers and scale up the business in various
parts of the world through faster processing.
Furthermore, the online platforms are also
good growth option for the firm in current era
(Wahyuni, Fahada and Atmaja, 2019).
Legal Laws like health and safety, minimum wages
law, working hours etc. need to be followed
strictly so that there is no government
intervention in the future.
Environmental In current times it is very important for very
business to conduct environmental friendly
practices and therefore it helps in enhancing
the brand image and also fulfils the corporate
social responsibility of the business.
SWOT analysis
Strengths
 The company is having strong social
media presence that have allowed large
amount of sales
Weakness
 Increases in pieces would negatively
impact the sales of the business.
 Also, with continuous changing
government policy the firm might not

 Having best and unique strategies for
the promotion in against others.
(Sainsbury's SWOT Analysis,
Competitors & USP, 2022)
be able to the sell the good in various
regions (Liu and Kong, 2021).
Opportunities
 Joint venture opportunities will help
the firm to expand easily into newer
areas.
 Through market research the company
would be able to set the business in
rural areas too where the demand of the
products could be raised to large extent
Threats
 The growing technological
advancements and globalization would
create threat for the firm to increase the
sales of business.
 Existence of new competitors in the
market would create problems for
successful operations for the business
Liu, C. and Kong, D., 2021
Furthermore, the resource and capabilities of the firm could be analysed through applying VRIO
framework that is type of analysis that would help the firm to identify and mapping out the
resources that are useful for becoming successful in the future working of the business.
Resources(R) Value(V) Rare(R) Imitable(I) Organised
(O)
Competitiveness
Global
business
✓ ✓ x ✓ ✓
Leadership ✓ ✓ x ✓ ✓
Satisfied
customers
✓ ✓ x ✓ Moderate
competent
Thus, from the above chart it can be said that all the Sainsbury's resource such as the
global presence of business are valuable, rare and not imitable easily by other business that are
operating on small scale (Sheng and et.al., 2019). Furthermore, through this analysis the firm
would be able to ensure efficient utilization of all its resource in various target markets.

Critical evaluation of the competitive environment using Porter’s Five
Forces model.
Through using this model Sainsbury would be able to maintain the competitive advantage
in various markets' and maintain the brand position that is necessary for the success of the firm in
long run. Furthermore, this model consists of the following elements that are been described as
follows:
Competition in industry: Retail industry in UK is very large and thus it can be said that
there are large number of competitors that are operating and launching new products in the
market for ensuring continuous survival. Furthermore, Sainsbury though has vast number of
loyal customers that does not impact much on the sales of the business. Also, through regularly
monitoring the market and its new products the cited firm would be able to operate successfully
in long run.
Potential of new entrants: As the retail business is very large in UK there would be
constant pressure on Sainsbury to launch new products in the market that are completely
different from the competitors in the market (Rogmans and Abaza, 2019). Furthermore, these
new entrant would not be able to compete much with the existing firm but is very important to
for Sainsbury to keep close check on the entry and exit of these firm on regular basis.
Power of suppliers: This factor is currently low for Sainsbury as there are large number
of suppliers that are available in UK market that are ready to supply variety of goods for the
company in different region. Also, being associated with such brand is big thing for such
suppliers and also switching cost is also very low that provide much ease to the business.
Furthermore, if the suppliers are made available to Sainsbury ate lower cost than it means that
there would greater revenues for the firm in the future.
Power of customers: There are large number of customers that are present in UK and
outside that are connected through the online platform. Hence, it can be said that customer
choices and preferences have to be taken into the consideration at each level so that Sainsbury
could ensure continuous operations of the business in long run. Furthermore, this factor is very
high and hence the cited firm need to conduct the detail market research so that consumers
choices are known clearly.
Threat of substitute products: Retail industry is very big and therefore there is always
higher chances that new products are launched by various firms within the industry. Moreover,

the substitutes are ones that have some special attributes different from other products that are
available in the market (Habib and Hasan, 2020). Also, substitute products are presented within
the market through complete analysis however they might not much impact on Sainsbury as it is
having large product line within its business that is capable of satisfying different consumer
needs. Even through the market information need to be gathered by the firm so that later on there
are no looses incurred.
Justification of the organization’s existing and/or potential competitive
advantage.
Thus, it can be said that from the above analysis that Sainsbury need to maintain the
competitive advantage as to operate successfully in various global markets. Furthermore, it is
very much required that all the possible factors are closely analysed so later on not many
difficulties had to be faced by the business (CHA, HWANG and KIM, 2019). Moreover, those
companies that have adopted the best competitive strategies would be able to charge little higher
prices for their products, build the best brand image in various markets and would be able to
attract more customer towards the business. Furthermore, having the different products and
attributes within the workplace would help in building best strategic alliances across various
regions. Also, through using this model the company would be able to estimate the competition
within the industry and identify all the possible opportunities for the future successful working of
the firm.
Devising valid strategies and tactical objectives to achieve overall strategic objectives
Strategic management plan
Background
Sainsbury operating as the second largest supermarket by serving wide range of product
portfolio to the consumers with serving food and non-food products. The company is highly
recognized for selling dished with great quality and delicious in nature. With offering at fair
prices helps in retaining and attracting target market for purchasing the products from diverse
stores this helps in attaining growth.
Organisational structure
Sainsbury is mainly following the Mixed structure, as by operating with more than 300
employees. With combining the two or more structure helps the Sainsbury in adopting the

changes while operating in the dynamic environment for serving with restocking the products
with serving by using sustainable packaging.
Vision
Sainsbury's vision is to operate and serving the wide range of products with maintaining
the good quality and healthier products in nature. This results in ensuring with promoting the
healthier living for the employees with providing good infrastructure and working with the set
standards. Also, the company is working with providing safe surrounding to all the employees.
Mission
Sainsbury main mission is to serve the consumers for providing the best quality products
in nature. Also, maintaining the healthy environment to all the staff as for motivating to work in
more enthusiastic manner for ensuing positive working environment.
Tactical objectives
 To adapt different ways for working and producing the products in sustainability by
packaging.
 To produce uniquely featured products for attracting consumers for attaining growth.
 To ensure the adequate quality of al the products for maintaining the healthy living.
Marketing mix
Various marketing strategies adopted by the company in accordance with its product,
pricing, place and promotion of the products.
For the product strategy the company is mainly adopting the strategy to sell the diverse range of
products including dairy, beauty, electronics, household and various non and food products
to large number of consumers.
In pricing strategy the Sainsbury adopted to serve the products at the fair prices which helps in
attracting large number of consumers while operating in dynamic environment. With
adopting this strategy helps in attaining competitiveness while operating in the dynamic
market.
In the placing strategy the company is mainly adapted to serve and distribute the products with
using the online and offline distribution channel (Azhar, 2021). With adopting this strategy
it helps in providing the products by maintaining convenience.

As in the promoting strategy the company is mainly adopting the use of social media apps, also
advertising by using the billboards, radios and TV which results in building the brand image
to retain the loyal consumer market.
Strategy formulation
By using the bowman and the porter generic models, Sainsbury is mainly adopting the
differentiation strategy for serving wide rage of products and attaining growth while operating in
dynamic market. In The differentiation strategy mainly aims in guiding to work as by
introducing the new products with unique features mainly differentiated from its competitors.
Further by using this strategy helps in attaining and growing the business by providing high level
of satisfaction to the consumers (Siegel and Leih, 2018). As by differentiating the products helps
in influencing the consumers to willingly pay high prices as with satisfying the consumers needs
and wants with serving the unique products better than the competitors with high value.
More over, with using the viro model, help in analysing the company internal
capabilities. As the human resources, leadership team and the company global recognition and its
marketing strategies. Further more, With using all its internal resources assist the business to
differentiate their products and to serve in unique features by adopting sustainable packaging.
Thus, with using the differentiated strategy helps in working effectively by producing the
uniquely featured products to the consumers for providing the best satisfaction.
Implementation
For implementing the adopted strategy, effectively communicating with all the staff
personnels helps in aligning the tactical objectives with mission and vision of the company
(Bogers and et.al., 2019). Also, organizing regular training and hiring the skilled and potential
employees for working and producing the unique featured products helps in producing with
effectively working for attaining growth in the company by improving performance. Further
more, by aligning all the marketing activities and the production with the finances helps in
successfully producing and manufacturing the good quality unique products which results in
attaining growth by serving products o wide range of costumers.
Evaluation
For evaluating the adopted differentiated strategy, the company is mainly using the KPI
tool which helps in analysing its performance of the company after working with the strategy for

Selling the product at low prices with good quality (Gatutha and Namusonge, 2020). more over,
As It helps in determining whether the company is attaining growth in the business or not.
Thus, for attaining growth while working as with serving the dynamic consumers in the
market. The company is mainly using porter generic strategies and bowman model, differentiated
strategy which assist to attain growth as for serving wide range of products to the consumers.
PART- B
Evaluating the different types of strategic directions available to the organization.
Sainsbury need to move in the right direction so that overall organizational objectives
could be achieved in timely manner. Furthermore, this could be done through applying the
Bowman clock strategy through any firm would be able to position itself in various markets it
operates. It consists of the nine positions in clock that are been explained as follows:
Low Price & Low Value Added: It is position where the firm is providing low value
added products in lower prices and here the focus is on manufacturing bulk quantities of certain
goods to achieve higher sales.
Low Price: Here the company is majorly focused on keeping the lowest prices of
products as possible and also the profit margin is kept very (minimum) than compared to others.
Hybrid: It is the mixture of low price and differentiation strategy in which the prices are
kept competitive and value added products are been promoted

Differentiation: it is one where high perceived value products are been added within the
business that are capable to stand out from the rest products in the market through having unique
features
Focused Differentiation: It is where high value added products are provided at higher prices and
when this strategy is successfully (implemented) than it results in higher profits but it is also
most the riskiest one.
Risky High Margins: As the name suggest it is one of the strategy where organization
go to the high price point without adding any perceived value in it (Fraser, 2019). Therefore, this
strategy might not wok for longer time-frame as consumers are well aware of changing market
and the products that are made available.
Monopoly Pricing: It is type of strategy in the clock where there are few firms that
controls the market through price factor. However, this strategy might not work for longer as all
the monopolies come to end at some point of time
Loss of Market Share: It is generally the worst position in the clock where the existing
market of the company might declines either due to the loss in market share or movement of the
company in other markets.
Another one that would help the company in having the right direction is through
applying the porter generic model that consist of the following elements that are briefly
explained as follows:
Cost leadership: it is one of the strategy that could be adopted by the firm through
focusing on reducing the prices of various goods and services so that more people are attracted
for the business (Wahyuni, Fahada and Atmaja, 2019). Also, here the company achieve by
increasing the profits through reducing the costs of various products and also this strategy would
help the firm to increase the market share in most systematic manner. However, keeping such
strategy constant over the long period would mean that company efficiency is reduced and also
there is negative impact on the overall productivity of the employees that are working within the
firm. Apart from this cost leadership strategy would be success when the firm is having access to
the capital that is needed for technology and also has the efficient logistics.
Differentiation strategy: This is strategy that involves developing of those products that
are different and unique form others in any form so that more customer get influenced to buy
such products on large scale. Moreover, through using this strategy the firm would be able to

discover new areas and also sell creative goods in the market. Furthermore, using this strategy
requires that complete market research is done before only so that later there is no wastage of the
efforts by the firm (Lim, Chalmers and Hanlon, 2018). Moreover, those firms that are using this
strategy would have the ability to deliver the high quality products and conduct effective
marketing and sales for the business in vast areas. Also, risk factor in such strategy is high as lot
of funds and resources are required to adopt such strategy in the future in the most effective
manner.
Focus strategy: It is one of the strategy that would help the firm to concentrate on the
niche markets and understand dynamics of the market through help of the research team.
Furthermore, through adopting this strategy the firm would be able to the build the brand loyalty
on vast level as groups of the individuals needs and choices would be taken into consideration.
Moreover, with brand market strategies the firm would be able to carter in the best manner to the
particular market segment. Also, the focus strategy could be adopted either through using the
cost strategy or through being differentiation focus depending upon the firm overall objectives it
wishes to achieve during the certain point of time.
Recommending the most appropriate growth platform/s and strategies.
From the above two strategic analysis it can be said that one that would be adopted by
Sainsbury would be differentiation strategy that would help the firm to identify new markets
that would further help in increasing the current profit margins. Also, through sue of this strategy
the firm would be able to create more loyal customers and gain competitive advantage in new
areas (Kong, Jiang and Zhu, 2022). Moreover, the company would also be able to add something
extra in this through closely analysing the needs of the large number of customers that are
located in different regions and also purchasing the goods through online platforms. Also, if any
innovative products or service is been provided than it tends to attract customers and influence
them to even pay little higher prices for the quality goods that are distinct form those that are
available in the market.
Evaluating ways by which the chosen strategies can be monitored
From the above all the strategies that are been suggested to the Sainsbury, it can be said
that all these could be closely monitored through developing certain key performance
indicators that will helps in comparing the current performance with certain set standards. Also,
through these standards set by the business the firm would be the able to easily identify the

deviations and would focus on the developing the best solution to rectify them (Liu and Kong,
2021). Moreover, controlling of the activities would also be done through setting the
benchmarks such as specified price and sales levels so based on that past performance of
employees could be compared with the present performances and corrective actions might be
taken on time
Thus, through such monitoring measures Sainsbury would ensure that all the work is
carried out in the proper manner and also there is optimum utilization of resources. Moreover,
the monitoring of work would help employees ensure that all the task are completed on the given
deadlines and are submitted in the most productive manner.
CONCLUSION
From the above report it can be concluded that, forming and using various strategies in te
business helps in attaining growth. Sainsbury is mainly operating and serving wide range of food
and non-food products to wide range of consumers in the global market. For analysing the
internal and external environment of the business, with using the PESTLE and SWOT
framework helps in defining all the forces and factors impacting the internal business operations.
Further more, by using the porter five forces helps in analysing the competitive position with
forming the strategies for attaining competitiveness while serving the large consumers with
diverse products ranges. Further more, With forming the strategic management plan helps in
adopting suitable growth strategy from the bowman and porter generic strategy for the company
to achieve the set target gaol and objectives. As by Using the differentiation strategy for the
company by adding new feature and providing unique products helps in attaining growth while
serving dynamic consumers market.

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Online
Introduction to Bowman’s Strategy Clock. 2022. [Online]. Available
through:<https://getlucidity.com/strategy-resources/introduction-to-bowmans-strategy-
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Sainsbury's SWOT Analysis, Competitors & USP . 2022. [Online]. Available through:
<https://www.mbaskool.com/brandguide/lifestyle-and-retail/2042-sainsburys.html>