Strategic Analysis

STRATEGIC ANALYSIS

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Compare theory and practice.......................................................................................................3
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Strategic analysis are tools which help businesses in the market to be able to plan and use
the right technique to be able to operate effectively in market. There are a lot of frameworks
which can be used by organizations to be able to find out right methods to function and compete
with competitors in market. Sainsbury is a public limited company which was founded in 1869
and headquarters of company is in London. The further report is going to discuss tools which can
be used by businesses to be able to operate effectively in market. There is an analysis of Porters
five forces which is going to make business have a good understanding of market so that future
decisions can be taken by business. The competition in market is high and to be able to get a
place for themselves businesses in market will have to use these tools.
MAIN BODY
Compare theory and practice
There are a lot of frameworks which are present in market so that there are going to be
higher results which are going to be present. Porter's five forces was given by Michael E. Porter
so that micro environment of the organization is going to be maintained. The competition in
market is increasing which needs to be controlled and that can be done with help of this analyses
so that results and profitability is going to be higher. The further report is going to discuss
competitive analyses with the help of porter's model of Sainsbury with Tesco.
 Competitive rivals (High)
There are already a lot of rivals which Sainsbury is having in this industry like Tesco,
Walmart, etc. therefore it is important for organization to make sure that they are taking the right
measures and right techniques are being used in organization. For a higher performance and
competitive advantage there have to be right measures which the business must take which is
good for overall development of company. There are few competitors who have large market
share and Sainsbury is one of them which need to be worked upon and focus of the company is
also going to be higher (Abdel-Basset, Mohamed and Smarandache, 2018). The exit barriers are
also high in company which will have to be maintained so that organization will be able to focus
and force workforce to make company have higher productivity and operations so that demands
and needs of the customers are being maintained. As compared to Tesco they will have to have
higher profitability when there are going to be right decisions which are being taken so that the

business will be able to have higher forces which will make the company be able to have good
lead in market.
 Potential new market entrants (Low)
The economic sale which is present in Sainsbury is high because of competitive
advantage which the company is having for themselves in market. The organization has been
able to develop a place for themselves over years and due to experience organization has
gathered a competitive advantage which is good for a long run in market. It is going to be
difficult for new entrants to come in this industry since organization has already made high
reputation and loyal base of customers which is present in organization. There are a lot of
advertisements which the company has made so that they can capture the market effectively.
Networks of Sainsbury are also very loyal and strong in market which is why the other entrants
will not be able to compete with this organization (Bush, 2019).
 Power of suppliers (Low)
Sainsbury has numerous numbers of suppliers which the company has got for themselves
in the market which is good for getting a control on this factor for the company. There are
suppliers which will charge raw material for higher value which is why having networks with
suppliers with a lot of them is important for Sainsbury so that they will be able to shift from one
to another. To have cost friendly measures in organization, Sainsbury will shift from one to
another suppliers so that organization will not be dependent and control is going to be higher of
company then of suppliers on the organization. It is because of experience and right measures
which company has taken over time, organization understood the importance so that there are
going to be higher results.
 Power of customers (Medium)
The demands of clients are growing and that needs to be fulfilled by firm from time to
time so that there is going to be superior sales. The company needs to have a good profitability
for themselves so that they will be able to invest in other factors for the further growth which is a
very important factor for company to have (Forces analyses of Sainsbury, 2020). Customers
bargain a lot but products of Sainsbury are already of high quality, and they are also selling their
products at lower price which is a great advantage which the organization is having for them.
There are a lot of sales and discounts which Sainsbury is providing for customers so that
customers will not have a controlling power over the organization which is going to make