Global Strategic Management of Sainsbury: SWOT, PESTLE, Ansoff Matrix Analysis and Recommendations

This article discusses the global strategic management of Sainsbury, a UK-based supermarket chain. It includes an analysis of the company's existing strategies, SWOT and PESTLE analysis, and the Ansoff Matrix. The article also provides recommendations for the company to overcome losses due to pandemic, Brexit, and war with Ukraine.

Global Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Existing strategies of Sainsbury...................................................................................................3
Swot analysis...............................................................................................................................5
Pestle analysis .............................................................................................................................7
Ansoff Matrix...............................................................................................................................8
Recommendations......................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Global strategy refers to strategies used by organization for growth and expansion of
business in global market. The focus of developing global strategy is to increase the sales in
international market and to capture higher market share. The concept of global strategic
management deals with effective management of global strategies that are being developed by
organization for gaining competitive advantage in industry and to lead the market. The global
strategic management has developed by combining globalization and its implications on
corporate world. This strategic management involves various aspects which are set of economies,
diverse talent pool, competitors, technology, management styles, process effectiveness and cost-
effectiveness. It is very essential for organizations which are dealing in global market to develop
global strategies. The importance of the same are generating new sales, accessing new resources,
fostering global awareness regarding company and products, lowering of labour cost and many
more.
The company which is being selected for current project is Sainsbury which is
supermarket chain headquartered in London, UK. It is the second largest supermarket chain in
UK and is operating worldwide with variety of products. The company has three divisions:
Sainsbury supermarket, Sainsbury Bank and Argos. The products that are company dealing with
are home care appliances, beauty and health products, food and beverages, clothing, etc. The
project is going to provide an outline regarding the global strategies that are being implemented
or adapted by company. The existing strategies that are adapted and the strategies that company
must implement to overcome the losses due to pandemic, Brexit and war with Ukraine. There
will be detailed discussion regarding internal and external environment of company and its
impact on business and its operations using SWOT and PESTLE analysis tools respectively. The
project will also highlight some changes in strategies that have been implemented by company
post pandemic, Brexit and war using Ansoff matrix. It will also include justifications regarding
changes and recommendations for overcoming any pitfalls in new strategies adapted by
company.
MAIN BODY
Existing strategies of Sainsbury
The strategies that are being developed and created by company are based on five pillars
which are: knowing customers in better manners, offering products and services with great

quality and at fair price, providing customers with effective services and clarifying their
problems when and where ever possible, providing employee satisfaction and complying with
core values. Company had developed effective strategies for attracting customers and to ensure
customer satisfaction and retention. According to Porter's generic strategy, Sainsbury had
implemented differentiation strategy and offers different variety of products to its customers
which had provided opportunity to customers for selecting products according to their taste and
preferences (Ze and et.al., 2018). Company has been taking care of taste and preferences of its
customers and are offering products and services accordingly which has enabled them in
achieving higher customer satisfaction and second leading supermarket chain in UK. The
differentiation strategy has helped company in gaining competitive advantage and attract more
customers. Company has been offering variety of products at competitive price which has helped
in capturing higher market share.
Company has also adapted marketing strategy for attracting customers and for developing
a strong loyal customer base. Marketing strategy implemented by company is omni channel
marketing across its different marketing channels. Along with this company had also used
effective delivery channel which includes in store shopping and online shopping. This has
enables company in increasing its revenue and connect with customers where it was not able to
reach. The effective customer service and developing and maintaining a strong relationship with
customers has helped company in higher customer satisfaction and to understand their needs.
The intensive growth strategy adapted by company has helped in growth and expansion of
company in global market. The primary strategy followed by company is market penetration
where company had adapted various marketing and promotional strategies for increasing its sales
volume in existing market with existing products and services. As a secondary strategy
Sainsbury had also adapted market development and product development strategy for expansion
in new market and for increasing its product line.
The primary focus of adapting all these business strategies was to develop a strong
relationship with customers by providing effective and efficient products and services at fair
price. The company had targeted all range of customer with diverse preferences. Generic strategy
and intensive growth strategy has enabled company to provide wide variety of products to
customers and capture higher market share and develop a good brand image. Company has been

focusing on changing trends and adapted those trends to gain competitive advantage and be the
first supermarket company to offer the same to customers.
Swot analysis
As by using the swot framework it mainly helps in analysing the internal factors of the
company which impacts the business and its operations.
Strengths
 Sainsbury being recognized as one of
the largest retaining stores in the UK
mainly diversified its operations in
more than 1000 supermarkets.
 Being listed in the London stock
exchange mainly helps in diversifying
its business and grabbing strong market
share (Nandonde, 2019).
 Adapting right expansion moves with
adapting the trends and rapid changing
environment.
 Using excellent branding and
promotional strategies mainly helps in
retaining the loyal consumers market.
 Adapting more simplifies operations
and accelerating the cost saving
programs due to the covid impacts.
 With catering all types of consumers
with adapting the dynamic market and
serving with the latest trends with
constantly changing preferences in the
market (SWOT analysis of Sainsbury,
2022).
 With complying all the legal rules helps
Weakness
 With rising the prices of the products
being sold by the company aid in
impacting the consumer purchasing
power which reduces the consumers
market, this influence the consumers to
shift on the other brand for purchasing
products.
 Highly competitive and changing
market mainly impacted the company
and suffer loss due to the restriction of
pandemic and Brexit impact in the
economy.
 By trying to cut the cost and attaining
low margins impacts the company
profits and revenues to sustain in the
highly dynamic environment.
 With highly changing environment
mainly arises the demand and adapting
the latest trends for serving the products
to the consumers, as this mainly
impacts in serving the quality of food at
fewer margins and low prices.
 The company impacts its brand image
by avoiding the tax regulations and

in attaining the competitiveness while
serving the large global consumers
market.
 Selling products for providing value to
the consumers of the products mainly
helps in retaining large market share.
price fixing for selling their products in
the market.
opportunities
 Sainsbury must implement serving 24/7
by using the automated self checkout
options in the stores which mainly
helps in progressing and attaining
growth in the company.
 The company must enter into the
emerging market which mainly with
making alliance, partnering and joint
venturing this helps in exploring the
new market and adding new
opportunities by serving new
consumers.
 Expanding the business into the rowing
economies mainly help the company to
gain growth while serving new
consumers and adapting large market
share.
 Starting the online groceries and
convenience stores also adapting the
new channels for serving the consumers
results in attaining growth in future by
earning high profit.
 The company must adapt the
technology analytics which results in
Threats
 Due to the changing market and high
level of competition mainly impact the
company for serving the consumers in
the dynamic market. The main
competitors of the company are Asda,
Morrisons, Tesco etc.
 covid pandemic restricted the company
to serve by the physical stores, with the
lock downs in the country mainly
impacts on sales of the products which
limits the buying power of the
consumers.
 Changing laws and regulations in the
economy due to the globalisation
mainly impact the business operations
in the expansions and attaining legal
issues.
 Brexit impacted the prices of the
products being produced by the
company in the dynamic market, this
mainly rise the prices and resulted in
supply chain issues for the company.

fining out the consumers insights for
serving wide range of consumers in the
dynamic market.
Pestle analysis
By using this framework it mainly helps in analysing the external factors impacting the
company and its internal operations.
Political factors
Due to changing policies and regulations by the government mainly impacts the company
and its operations to serve the consumers in highly dynamic market. The major impact on the
company is due to the Brexit impositions and limiting the imports of the products being served
by the company in the highly dynamic market (Ortega-Altamirano and et.al., 2018). The changes
In the economy mainly influenced the company to rise n the price of the products being produced
and rates of imports become more due to the Brexit impositions. Also, the political relations with
Qatar impacted the company which leads in dropping the share of the market in the future and
hinders in attaining growth in the firm.
Economic factors
Due to the dynamic changing market the rise in the cost of the fuel mainly impact the
company and its profits, this resulted in increasing the transportations costings. Also, the
expectations of the salary is arisen in the market (PESTLE Analysis of Sainsbury’s, 2022). These
crazinesses the expenses and reduces the revenues. Further more, uncertain economic conditions
mainly impacts the company to earn set targets and attain profits due to covid pandemic.
Social factors
Various societal concept and their preferences impacts the company to serve the products
in the target market. Due to constantly changing the taste and preferences of the consumers
hinders and impacts the profits by adapting constantly changing trends. Also, the fair trade
movement impacted the chocolate and coffee as to meet the demand of the consumers.
Technical factors
With the high technical advancement mainly impacts and induce the company to adapt
new technological ways. As by using AI and big data, with adapting this technology mainly
helps in improving profitability in Sainsbury (Fengyi, 2021). Also, with serving by adapting

online shopping ways for the consumers it mainly helps in serving and providing more
convenience to the consumers in dynamic market.
Environmental factors
Various environmental factors impacts the company to serve in the competitive market,
with this the Sainsbury must comply with limiting the impact on the environment by reducing
the carbon footprints. Also, by adopting the sustainable ways helps in limiting the use of plastic.
Legal factors
Different legal laws and regulations impacts the market share of the company in. for this
the company must comply with all the act as the wages act, safety and security of the consumer
and employees . Further, changing in many policies post covid impacted the Sainsbury to operate
in the dynamic market.
Ansoff Matrix
The Ansoff growth matrix are is a strategic tool which provides four strategies that can be
adapted by company in order for expansion and growth. Sainsbury had already adapted this
matrix for growth and development of business and to operate in global market. The board aim
of company while adapting this strategy is to maximize profitability and ensure long term
business growth.
Market penetration
Market penetration refers to encouraging sales growth with existing market and products.
This includes the activities that are involved in increasing sales volume and attracting more
customers. This is a primary growth matrix which had been adapted by company and it had
given a positive outcome to company in context of sales and profitability (Zakiyyah and Fadah,
2020). This growth strategy had been adapted by company before pandemic also but post
pandemic it had made some changes for ensuring growth and development of company and to
mitigate losses through enhancing growth. The company had linked this strategy with Porter's
cost leadership strategy and lowered the prices of products and services offered by company for
attracting price sensitive customers. The reduction of product price had not negatively impacted
profit margin as company had tried to reduce production cost by hiring low cost labours. It is one
of the advantage of operating in global market that company can hire labour at low cost as in
some countries labours are available at low cost. Company had also used the latest technology

for increasing sales through online mode which has made it convenient for customers during pre
and post pandemic.
Market development
The market development strategy is secondary strategy which had been adapted by
company with a motive of expansion and enhancing reach in global market (Clarissia, 2019).
The strategy involves offering existing products in new market and to new customers to increase
customer base. This strategy was implemented with market penetration and this included
research of new market and customers with whom company is planning to deal with. This has
help company to reach wider market and to create and develop higher customer base. The stores
and supermarket6 of company are available in various countries and offering products and
services according to customer preference. For market development company had not only
opened new stores and supermarkets in various countries but are also operating online which
involves low cost for establishment. This change has helped company in overcoming with the
problems that were faced after pandemic.
Product development
Product development strategy deals with development of new products or services into
existing market to provide customers with variety of product lines. This will reduce the threat of
substitute and increase customer retention. Company was already dealing with variety of product
range and was continuously engaged in innovation so that it can ensure competitive advantage.
The company had used the latest technology for production and market promotion so that it can
reduce production cost and earn higher profit (Yaqoob and Omer, 2021). This strategy has
opened wide growth opportunities for company in existing market and helped in capturing
higher customer base. After pandemic for reducing cost of production, company had
implemented advanced technology which has reduced human involvement and helped in
effective research and adaption of changing trends.
Diversification
The cost minimization ability, existing infrastructure and brand image has enabled
Sainsbury to adapt this strategy where it is engaged in offering new product line within new
market (Zanjani and et.al., 2020). Diversification strategy has not been implemented by company
before pandemic and after pandemic it had to make changes in strategies and implement this

strategy along with other strategies. This strategy involves high level of risk therefore, company
had focused on related diversification strategy.
Recommendations
The changes that can be made by company for overcoming losses due to pandemic and
Brexit slight changes in marketing and promotion, adaption of the latest technology and to offer
customers with products according to their preference. The company is required to change its
promotional strategy and develop a plan which can enable it in attracting customers with diverse
preferences. Company is required to segregate its customers into various segments according to
their preferences and develop promotional strategies for each segment which will help it in
increasing sales volume in existing and new market. Sainsbury is required to focus on online
platform for business which can give opportunity for wider reach and expansion of business. The
digital technology has made it effective for organization to operate in global market and to deal
with various problems that are existing in international market (Omosa and et.al., 2022).
Adaption of digital technology will enable company to effectively communicate with its
employees in various countries and develop efficient global team who can work in coordinated
manner.
Company can also implement artificial intelligence in its stores which can be convenient
for customers in billing and will also reduce customer waiting time for billing. Company is
required to invest in technology which can help in gathering information regarding current trends
and customer preferences which will make it easier for company to offer customers with
products and services of their choice. The diversification strategy that has been recommended to
company for expansion and mitigating losses due to pandemic has many disadvantages (Syuzeva
and Zheltenkov, 2021). Company is required to consider all the cons of diversification strategy
and then implement the same within business. This strategy involves huge amount of risk as
company will be dealing in area which is new to it. It is required to invest in research and
development so that it can effectively implement this strategy and take advantage.
CONCLUSION
The development of global strategy is very essential for organization operating in global
market as this can enable effective functioning of business and to earn higher revenue and profit
margin. The strategies adapted by company will help it in providing direction to its employees

and outlines process which is to be used for attracting customers and in gaining competitive
advantage. The management of strategies developed and adapted by company is also essential
and it management of company must ensure the same. The strategies that are made by company
is according to its objective and after evaluation of internal and external environment. The
strategies can be long -term as well as short term according to future aspects of company.
Strategies must be flexible and company should be able to change strategies accordingly so that
it can be able to cop with changing trends and environmental changes. Sainsbury had to make
some changes in its strategy because of pandemic, Brexit and war with Ukraine. The timely
changes had enabled company to mitigate its losses on timely basis and to retain its position in
market.
The project had outlined different business strategies adapted by company before
pandemic and which helped company in maintaining leafing position in market. Company had
implemented its strategies after analysing its strengths and weaknesses and opportunities and
threats in market. The differentiation strategy has helped company to provide variety of products
and selection opportunity to its customers. The project had also highlighted internal and external
environment of company and its impact on profitability and productivity using SWOT and
PESTLE analysis tools respectively. Along with this it had also discussed changes in strategies
made by company to overcome the losses due to pandemic using Ansoff growth matrix. The
project had included recommendations regarding any pitfalls in new strategies that must be
adapted by company for overcoming the gap and for increasing profitability.

REFERENCES
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selected tea factories in Kenya. International Academic Journal of Innovation,
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Online
PESTLE Analysis of Sainsbury’s. 2022.[Online]. Available
through:<https://www.marketingtutor.net/pestle-analysis-of-sainsburys/>
SWOT analysis of Sainsbury. 2022.[Online]. Available
through:<https://www.marketing91.com/swot-analysis-of-sainsbury/>