Sainsbury's Retail Strategy Analysis

This assignment analyzes the retail strategy of Sainsbury's, one of the largest supermarket chains in the UK. It examines the company's effective strategies implemented over the past five years, focusing on their impact on store development and business outcomes. The analysis also identifies areas for improvement and suggests new strategies and innovations to enhance Sainsbury's competitive advantage in the dynamic retail environment.

STRATEGIC ANALYSIS
AND
IMPLEMENTATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P.1. Strategic direction Sainsbuy's Company is followed in the past 5 years by organisations
and the way of thinking for development of strategy as well.....................................................1
TASK 2............................................................................................................................................2
P.2. A detailed analysis of Sainsbuy's organisation in which the company is operating............2
TASK 3............................................................................................................................................3
P.3. Sainsbuy's vision and missions are aligned to the demands of the marketplace................3
TASK 4............................................................................................................................................5
P.4. Discuss possible strategies that the company could follow to defend its core business .....5
TASK 5............................................................................................................................................6
P.5. Analyse and evaluate the resource implication of your recommendation that the company
has to address .............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
In this documentation, this study define about to the process by Sainsbuy's business make
use of some of effective strategy at the workplace and make improvement in the services of the
business so that effective outcomes could be gained by the business owner in the industry
effectively. There are some of effective strategy is suggested in this assignment by which
Sainsbuy's corporation could make use make improvement in their productivity and profitability
within the retail industry efficiently.
TASK 1
P.1. Strategic direction Sainsbuy's Company is followed in the past 5 years by organisations and
the way of thinking for development of strategy as well
In case of Sainsbuy's operation, from the past 5 years, the company has been using the
most appropriate strategic approach in order to sustain well in the complex retail industry
effectively. They need to more focus on strategic direction in the company so that the company
would be bale to meet to their existing objectives and aims efficiently within the retail industry
properly. As strategic consultant Sainsbuy's organisation, I have analysed that, the company is
implementing effective strategy in retail sector to complete their competitors in the market
properly. From the strategic analysis of the company., I have examined that which is as
following:
Computerised retailers: In case of Sainsbuy's organisation, they have used varied of
strategic strategy and making changes in their organisation in effective manner. In case of
utilisation of strategic approach in the company, the business entity is the first food retailer in the
UK which has used computerised system at the workplace in order to supply efficient foods and
services to their consumers effectively (Ying, 2010). After that, they have also utilised purchase
card systm at their retail stores at various regions so that each of their customers used their cards
and make way easy of purchasing product and services of Sainsbuy's company effectively. With
the help of computerised system at the workplace the company has been now second largest
supermarket chain in the UK and generating effective revenue from the market as well.
Product expansion: Sainsbuy's company's is well known for furnishing food products at
their retail stores effectively. From the last 5 years, it has been seen that, the company has been
using strategic of making the latest style of communication with their existing customers by
furnishing non-food product lines to their customers in various cities in the regions efficiently.
1

The focus Sainsbuy's company is that developing fresh product lines and also add recycle
products in their new product line which assist the business entity to generate more profitability
from their retail stores. The way of thinking to new strategic dimension is that it started to serve
first bakeries, fresh fish outlets, petrol stations, coffee shops, restaurants, books shops and music
store etc. which increase sales and productivity of the company effectively.
Sainsbuy's online: The company has started to deliver their food services at the home so
this strategic dimension of the business has been increased the sales of the business products and
services effectively (Abdelhak, Grostick and Hanken, 2014). The company capacity of deliver
food products at the home which is over 100,000 order per week from their all retail stores in the
company efficiently. This is also strategic development of the company in recent era. By which
they have increased their sales in the industry and generate more profitability from UK's market
efficiently.
TASK 2
P.2. A detailed analysis of Sainsbuy's organisation in which the company is operating
In order to proper strategic analysis of competitive advantage retail company, we need to
utilisation of McKinsey's horizon framework to effectively identify the strategy of the business
which is implementing by the business from the last 5 yeas in the industry.
Horizon 1: Maintain & Defend core business
Some essential business exercises which is closed associated to your current business
effectively. In this section of strategy analysis, most of your revenue generation activities which
is associated with you efficiently (Rothaermel, 2015). In case of the retail business, your day to
day goals concerned with the selling of your product must be included, marketing efforts and
serving product to their customers also make difference in the company.
Horizon 2: Nature emerging business:
In this phase of strategy analysis, there might be initial cost involved with horizon 2
exercises in the business efficiently. In this phase of strategy analysis, you need to identify that
what you have in current time and what they the company is implementing in their business in
order to new product development and also revenue generation of the company efficiently.
Horizon 3: Create genuinely new business
2

In this phase of the strategic analysis of the company, it introduces the entire new
elements to your business that does not feasible today. This might be significantly unproven for
the business which might conduct unprofitably for the corporation efficiently.
Company's competitive advantage among its direct competitors
Great food at fair prices: In order to becoming leading company in the industry, they
need to make implementation of the approach by which they can generate more effective
services towards their customers in efficient manner (Liu and Ko, 2011). Sainsbuy's organisation
is using some strategy by which they offer great kinds of fresh food and retail products at lower
rate so each of their customers will be able to use of their services in the market effectively.
Reaching more customer through additional channel:
Sainsbuy's brand is opening their various new convenient retail stores at various region in
the country and also implementing online approach in today's complex online platform so that it
is increasing the sales of their product and services though making channel among their new
customers so that it assists the business to meet to their desired goals and objectives efficiently.
The probable industry scenario facing the company within its existing market domain
Sainsbuy's business are operating in UK's retail market efficiently and generating more
profitability for the business in efficient manner. The business now has been reached to second
largest supermarket chain in the UK and making efforts to reach to the top position in the retail
industry in the market efficiently (McGee, Wilson and Thomas, 2010). The current scenario of
the industry is becoming more complex year by year. Retail industry now has been reached to its
extreme complex stage, so that in order to sustain the market more effectively, Sainsbuy's
organisation need to use more innovation ideas and techniques at their retail store in order to
sustain the market more efficiently.
TASK 3
P.3. Sainsbuy's vision and missions are aligned to the demands of the marketplace
The company mission statement:
Our major mission to become consumer's first preference for selection of food from our
retail stores and delivering several kinds of food product and services at our retail stores
efficiently. Our mission make us to focus on some effective working in great services in order to
make development in some working areas by which we can furnish our fast retail services
together in the industry at efficient rate.
3

Its mission is aligned to its demands of the marketplace in the industry at efficient rate,
because of several kinds of new demand are generating by their existing customers in the market
at effective manner so that each of our customers will be able to reach to our services in the
market efficienlty.
Sainsbuy's company's vision for growth:
Sainbuy's company major focus on making improvement in the core retail industry in the
UK effectively (Thompson and Martin, 2010). We want to explore frequently essential sector of
development by which company's growth opportunity could be accomplished effectively within
the business environment. With the help of implementation of values in the organisation, they
have managing for values for the firm in efficient from.
The company's vision is also aligned with the organisational growth and demand in the
market effectively. The company making modification in its strategy according to the demand of
its existing customers in the market so that they need to make development in some of the areas
by which they can generate more of its effective retail services towards its customers efficiently.
Sainsbuy's strategic capabilities:
Various kind of ways by which the company is formulating its strategic capabilities in the
industry at efficient rate so that each of our customer will be able to use of our existing services
in the industry efficiently. The company are making major focus on implementing innovation in
their retail and food services in more efficient manner. As the retail business environment in
becoming more complex in the industry as the company's research and development team is
making utilisation of their new techniques to serving out existing product and services to
customers in effective rate. The company is adopting the ways of integration in the business
which play an important role in development of strategic ca[ability of the company properly.
They sue IT integration system by which they can easily record and save the data at the retail
store more effectively (Therivel, 2013). The company also using innovative techniques at the
workplace in order improve the ways by which the enterprise could develop new techniques of
serving food and retail product and services at retail outlets. Varied of new technological
equipments are using by Sainsbuy's company at their retails stores which is, intelligent scale,
wireless devices for communication, electronic shelf labelling, self check -out machines and
radio frequent identification system by which they can generate more effective services to the
customers in efficient form. With the assistance of these new technologies within their all retail
4

store in the market, they company Discuss possible strategies that could follow to defend its core
business would be able to furnish more effective services in more existing way. The company
also used most appropriate trends which is, provide services at online booking of products and
our services provider reach you to deliver your selected order product, which assist the business
foe more improvement in their strategic capabilities of the company efficiently in the industry.
TASK 4
P.4. Discuss possible strategies that the company could follow to defend its core business
Varied of new strategy is presented here which could be adopted by the company in order
to sustain in the market more effective manner and also defeat its core business in the industry
as well.
Clear vision: In case of Sainsbuy's corporation, they must establish their core vision very
effectively in context to sustain in the market more effectively. The business entity must have
proper retail strategy in order to establish string vision which help the enterprise to establish
effective services in the business. They must have clear marketing and other promotional
strategy in terms of make the firm's product and services more popular in the retail industry of
the UK efficiently (Kochetova-Kozloski and Messier Jr, 2011). So the company need to establish
its clear vision which enforce the company's professionals to make more focus on the serving
retail products in impressive sort to their consumers.
Execute services: The falling down of most of the retail company have the major reason
is that they are not able to execute their retail strategies in the market at proper manner so that it
becomes reason to falling of the company. In case of Sainsbuy's organisation, they need to
deliver the values of portion by furnishing existing retail product and services to their customers
at efficient rate so that more profitability can be earned by the company at efficient rate. In terms
of its food production, the company need to execute services in provision of organic food at their
consumers which will satisfy with their services and increase the sales of the entity in the
industry efficiently.
New product expansion: The business entity could use this strategy to expand their
business across the country and attract their new customers to their new product development
and new product availability in their new retail store so that effective decision could be made in
the company in more efficient form (David, 2011). Sainsbuy's organisation could add some
innovative and demanded products at their retail outlets which will attract to buy them from their
5

retail outlets effectively. With the assistance of new product expansion in their retail outlets they
could defeat its core food business in eh industry effectively and increase the sales of the
company efficiently.
Innovation at outlets: Sainsbuy's company require utilising innovation technology at the
retail outlets in order to make it more attractive at major location of the cities so that customers
will get attract towards its innovative retail stores effectively and prefer to buy its new developed
and improved services from their new outlets efficiently so that, its innovative outlet assist the
business to defeat its core business in the retail industry appropriately (Clarke, A. and Fuller, M.,
2010).
New flavoured food product development: The organisation could utilise strategy to new
food products development according to demand of their loyal customer in the market and
according to their necessity, the company's chief modify their product and services at their food
sores effectively and also new flavoured and ingredients must be added in their foods products in
terms of make it more testy and preferable for our consumers within the market more effectively
so that its new strategy of new food product expansion could be established more value of brand
in the industry and defeat its core business in the industry efficiently.
TASK 5
P.5. Analyse and evaluate the resource implication of your recommendation that the company
has to address
In order to make recommendation to Sainsbuy's business we need to understand the core
business of the entity in efficient and its activity as well. In case of recommendation towards the
business entity we need to understand the innovation Sainsbuy's company which is in favour to
the customers and its other stakeholders as well (Velcu, 2010). Recently the company is making
its business at high range in the market and making more development in their some essential
areas by which the company can enhance their business in the industry more efficiently. Dell and
HP computers is leading retailers in retail laptop market and Sainsbuy's requires purchasing
quality of laptop products and services at the competitive cost and sales in their retail stores at
exiting offering rate so that its sales and productivity would be increased in efficient from.
Moreover, at the target market in the industry, Sainsbuy's major aim to increment in its retail sale
and productivity. The company can not arrange the laptop at low level prices for middle class
people in the country and only those people would buy this kind of laptop product and services,
6

the company need to arrange those products to those persons who can buy expensive product and
services effectively.
Our recommendation for Sainsbuy's business gives to exercises in a small scale is that
you could purchase all the retail products at competitive price and sales these retail goods at the
workplace at high rate which could generate profitability for the corporation efficiently.
Sainsbuy's corporation has its core business to mainly selling grocery and food products at its
retail outlets effectively, they need to make development in their business to making
diversification of their business exercises in their retail store in more efficient manner so that
each of our business activities would be generate in more effective manner so that its new
business environment could be improved efficiently (Grant, 2016). Moreover, enhancement of its
business activities in the business could generate more effectively in their business environment
so that organisational goals and objective could be gained in more efficient form so that the
business activities could be improved more efficiently. In case of Sainsbuy's business
organisation, they need to make diversification of their business activities at various level in
industry and according to them make development in those areas which is needed to me analysed
in the market in more efficient form. Sainsbuy's company need to diversify all the product and
services according to those areas by which they classify all retail product according to its suitable
segmentation in the industry effectively. So that the company will be able to effectively manager
their retail product and services at their outlets at more efficient manner and make development
in some areas which is needed to be improved in the business environment effectively.
CONCLUSION
From the above analysis, it is concluded that Sainsbuy's is one of the biggest retail
organisation and second largest retail supermarket in the UK. The company is utlising effective
strategy from the last 5 years effectively and making proper development in their retail stores
according to business needs in this sector so that effective outcomes could be gained in the
business efficiently. Moreover, the company need to utilise of new strategy and add innovation
in their new business activities so that effective outcomes could be gained in the buiness
environment efficiently.
7

REFERENCES
Books and Journals
Liu, G. and Ko, W. W., 2011. An analysis of cause-related marketing implementation strategies
through social alliance: Partnership conditions and strategic objectives. Journal of business
ethics. 100. 2. pp. 253-281.
David, F. R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Grant, R. M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Velcu, O., 2010. Strategic alignment of ERP implementation stages: An empirical investigation.
Information & Management. 47. 3. pp. 158-166.
Clarke, A. and Fuller, M., 2010. Collaborative strategic management: strategy formulation and
implementation by multi-organizational cross-sector social partnerships. Journal of
Business Ethics. 94. 1. pp. 85-101.
Kochetova-Kozloski, N. and Messier Jr, W. F., 2011. Strategic analysis and auditor risk
judgments. Auditing: A Journal of Practice & Theory. 30. 4. pp. 149-171.
Therivel, R., 2013. Strategic Environmental Assessment: An Overview. In Strategic
Environmental Assessment in Action (pp. 19-31). Routledge.
Thompson, J. L. and Martin, F., 2010. Strategic management: Awareness & change. Cengage
Learning EMEA.
McGee, J., Wilson, D. and Thomas, H., 2010. Strategy: Analysis and practice. McGraw-Hill
Higher Education.
Rothaermel, F. T., 2015. Strategic management. McGraw-Hill Education.
Abdelhak, M., Grostick, S. and Hanken, M. A., 2014. Health Information-E-Book: Management
of a Strategic Resource. Elsevier Health Sciences.
Ying, Y., 2010, May. SWOT-TOPSIS integration method for strategic decision. In E-Business
and E-Government (ICEE), 2010 International Conference on (pp. 1575-1578). IEEE.
8

9