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 inmarket 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. ď‚·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. ď‚·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). ď‚·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. ď‚·Power of customers (Medium) The demands ofclientsaregrowingand that needs to be fulfilled byfirmfrom time to time so that there is going to besuperiorsales. 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
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
organization have higher sales. There is innovation and creativity which is being involved in the organization so that the business will be able to develop themselves in market and new products always attracts more customers which is good for a long run in market. ď‚·Substitute products (High) There are a lot of products which Sainsbury has expanded them in so that satisfaction of the customers is going to increase of them in organization and the company is going to have higher sales. Sainsbury is improving and making sure that the measures company is taking are according to the customers of organization. Sainsbury is serving higher quality products in market which is going to make the company have lower profitability which is not good for a long run. There is very little profitability and substitutes for the products which are present for the products of Sainsbury since businesses want higher return for products and services. Tesco wants to gain trust of customers in organization for which the company is improving products and services accordingly so that the profits are going to be higher and productivity is also going to be higher which is going to make company have better performance. Tesco is having high unique identity in the market which is a great factor forfirmto have so that performance is going to increase and the organization will be able to research higher (MUKUL, BĂśYĂśKĂ–ZKAN and GĂśLER, 2019). From the above framework it can be concluded that there has to be effective working in the organization. Business should not be dependent on any factor since the productivity can get affected and that is not a good factor for a long run. PESTLE It is important for the organization to understand external factors which can influence the working of the organization in market. The competitors in the market are high which makes Sainsbury be even more certain of measures they should be taking for having higher performance in the market. ď‚·Political factors There are a lot of changes which have come in the organization after Brexit which made the company lose a lot of their loyal employees in the organization. Though the company maintained that factor and there is a stable growth which is present in the organization. It is because of the great quality of products and services which are present in organization the
company has been able to maintain their economic factor (Murphy, 2018). In order to be able to have maximum profitability in market there are a lot of investment which the company will have to make in the organization so that there are higher results which are going to be present.Due to Brexit there are a lot of taxation and other policies which changed and Sainsbury changed their operations and strategies according to this factor. ď‚·Economic factors The rates of pounds have reduced over time which is a drawback for the company because the profitability is going to get affected in organization. The unemployment rates in the market is high which can be used for higher productivity which is going to be present so that there are going to be higher profitability. Inflation rates are also increasing which has to be addressed by organization so that there are going to be betterperformanceand operations which has to be there. There are new emerging markets which are present in the market and that can be taken advantage of by the organization so that there are going to be higher results and Sainsbury will be having a stronger brand image in market. ď‚·Social factors There are a lot of changes which are coming in the retailing industry which are present, and they have to implemented in organization so that results are going to be as expected. The trends in the market are changing because GDP of population is improving therefore it is very important for the company to be able to operate effectively. Healthy products and services are being provided to the customers from time to time so that there are going to be higher brand value in market and for that there has to be food tracking of the raw material and input and output of Sainsbury (Pedersen, 2020). Sainsbury is very active in the market so that they can provide the best of products and services to customers which are going to make them loyal in the company.GDP of the country has improved by 6% over the last one year which is a great factor for the country and the company. ď‚·Technological factors There must be good collection of data and for that there are more technological factors which have been implemented in the company so that end result is going to be higher in company. Manual working has a lot of factors which are going to affect working which has to be controlled so that company will be able to operate effectively. Informational factors are being monitored so that the company can get competitive market so that the organization will be able
to operate effectively and efficiently which is good for a long run. There are online platforms which are being used by organization so that the results are going to be higher which are good for the profitability in the market. ď‚·Legal factors There are a lot of legal actions and regulations which are present in market for the retailing industry to follow so that outcomes are going to be better. There are certain kinds of laws which have to be followed and for that slower decisions can not be taken which is going to make performance of the organization get affected. The wages which are being paid to employees is low but the organization is not at fault and focus is on making productivity more. The retention level of employees is not present which is not good for a long run because the performance is getting affected (Oladele-Emmanuel, Rejeb and Redlich, 2018). ď‚·Environmental factors Using right environmental measures and techniques the organization will be able to have higher brand value and reputation in the market which is good for the further expansion of organization in market. Carbon footprints of Sainsbury is being worked upon so that end result is going to be better and there are serious environmental friendly measures which are put by government are being followed by the firm. The plastic and other waste of organization is being disposed off well so that the environment is not being harmed in any manner and there are measures which are being followed by the employees as well. Resources which are being used in the production of products and operations are used and measured well so that they can be sustained in the company. From the above framework it can be understood that businesses in the market have to make sure that there are no external factors which are going to affect working of business in the market. There have to be right measures and techniques which have to be used in the business so that there would be smooth functioning. SWOT A business is going to have strengths and weaknesses of their own which needs to be worked upon so that the organization will be able to gain a competitive advantage. After analysis the organization is going to have a better idea and decisions can be made according to that so that
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
the business will be able to grow. SWOT analysis helps the businesses to understand their internal factors which are going to be discussed in the further report as well. ď‚·Strengths Sainsbury is one of the oldest organizations in retailing industry which is a great factor since company has got experience in the market as well. The organization has expanded themselves in varieties of products and services which is a great factor for organization. There is higher investment as well which Sainsbury has put in this market so that they will be able to gain competitive advantage which is a great factor for the organization.In UK, Sainsbury has over 600 stores when there are just 800 stores in the country which is a great way of reaching out to customers and there are more than 30,000 lines of organization for customers (Coreau, Narcy and Lumbroso, 2018).There are a lot of advertisement actions which Sainsbury has taken so that they can reach out to customers as well, and they have a good measure taken for branding their products and services in market. ď‚·Weaknesses There is a visible growth which is present in the market for costing therefore the company will have to comprise their products quality or the pricing of products will have to be increased. There are a lot of risks which Sainsbury will have to face for switching the brand as well and that is going to make the promotions and loyalty of customers switch as well and that would impact sales and profitability of organization. Low margins for getting customers to purchase the products and services of Sainsbury which needs to be present so that company will be able to operate in market effectively. Technology has also made a lot of difference in working as well which is not good for a long run since the organization will not be able to operate effectively in the market.The company has not been able to gain the market because of Tesco and other companies in the market which has made the company have a lot of limitations. ď‚·Opportunities Sainsbury should take advantage of expanding themselves in villages and since they have a strong brand image then it will be easier for the company to have higher sales. Sainsbury will have to find more employees which are going to be retained in the organization so that the company can have a stable productivity and functioning which is going to be present. Emerging countries like Brazil, India, Russia, etc. are good targets for company and if the organization expands themselves in these countries so that business will be able to have a strong base for them
(Jui, Trappey and Fu, 2016). There are going to be labour as well which business can find easily to be able to expand and the profit margins are going to be higher of the organization in the market which is a great factor for organization. ď‚·Threats There is already a lot of organizations which have developed themselves in this sector of the market which is going to make the performance of the organization be affected. The companies which are present in market as competitors are ASDA, Morrison's, Aldi, etc. which are taking away customer base of Sainsbury which needs to be maintained. There has to be good control on business so that there are going to be good sales and performance of the firm in the market. Discounts as well can not be given by Sainsbury all the time since the company is not having high pricing and are not making high profits as well therefore the company will have to be certain which is going to make the competition rise. Quality of Sainsbury is high so that they can have loyal customer base which is going to make the quality of products and services of organization improve (Griewatz and Lammerding-Koeppel, 2019). All businesses have individual internal factors which can affect the working of the organization and those have to be analysed so that right decision can be taken. Businesses have to make sure that there are right measures and the organization will be able to operate effectively without having a lot of troubles in working. Recommendations Sainsbury will have to find new methods and techniques in order to be able to function effectively and efficiently in the market so that there are going to be effective growth. The company will have to invest more in research and development department as well so that the companycanhavehigheroperationsanduniqueidentityforthemselvesinthemarket (Venkatesh, Paluri and Bhattacharya, 2016). Right leadership style in the company is going to make the internal factors of the company be well maintained which is a great factor for the overall development of the company. CONCLUSION From above discussionit can be concluded thatfirmin the market will have to use right frameworks to be able to operate effectively inbazaar. It is because of competition rise and the
customer’s expectations and demands that businesses need to analyse the market effectively in order to be able to get a competitive advantage which is going to be very good for a long run of the business. The companies in the market will have a better sense of direction which would be present and organization will be able to operate and perform effectively in market.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
REFERENCES Books and Journals Abdel-Basset, M., Mohamed, M. and Smarandache, F., 2018. An extension of neutrosophic AHP–SWOT analysis for strategic planning and decision-making.Symmetry.10(4). p.116. Coreau, A., Narcy, J.B. and Lumbroso, S., 2018. Who Really Wants an Ambitious Large-Scale Restoration of the Seine Estuary? A Strategic Analysis of a Science–Policy Interface Locked in a Stalemate.Environmental management.61(5). pp.834-847. Griewatz, J. and Lammerding-Koeppel, M., 2019. Intrinsic roles in the crosshair–strategic analysis of multi-site role implementation with an adapted matrix map approach.BMC medical education.19(1). p.237. Jui, C.W., Trappey, A.J. and Fu, C.C., 2016. Strategic analysis of innovative laser interference lithography technology using claim-based patent informatics.Cogent Engineering.3(1). p.1240054. MUKUL, E., BÜYÜKÖZKAN, G. and GÜLER, M., 2019. Strategic analysis of intelligent transportation systems.Beykoz Akademi Dergisi. pp.148-158. Oladele-Emmanuel, B.D., Rejeb, H.B. and Redlich, T., 2018, June. Strategic Management: SWOTAnalysisoftheAfricanDigitalFabricationLaboratories.In2018IEEE International Conference on Engineering, Technology and Innovation (ICE/ITMC)(pp. 1-7). IEEE. Pedersen, C., 2020.The Parametric Process: A Strategic Analysis on Digital Design Technology in Landscape Architecture(Doctoral dissertation). Venkatesh,V.G.,Paluri,R.andBhattacharya,S.,2016.SustenanceofIndianapparel manufacturing industry in post MFA period-a strategic analysis.International Journal of Process Management and Benchmarking.6(3). pp.343-365. Online Bush,T.,2019.PESTLEAnalysisofSainsbury’s.[Online].Availablethrough: <https://pestleanalysis.com/pestle-analysis-of-sainsburys/>. ForcesanalysesofSainsbury,2020.[Online].Availablethrough: <https://www.ukessays.com/essays/management/forces-analyses-of-sainsbury.php>. Murphy, E., 2018.Sainsbury J PlcPorter Five Forces Analysis. [Online]. Available through: <https://www.essay48.com/term-paper/9094-Sainsbury-J-Plc-Porter-Five-Forces>. 1