Strategic Management: Analysis of Sainsbury's and its Competitors

Strategic Management

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Task 1...............................................................................................................................................3
PESTLE analysis.........................................................................................................................3
Major issues of Sainsbury in the retails industry.........................................................................5
Move on sustainability.................................................................................................................6
TASK 2............................................................................................................................................6
Mission and vision statement of the company.............................................................................6
Strategic competencies and capabilities......................................................................................7
Ways that how the company creates, delivers and captures value within industry.....................9
Task 3.............................................................................................................................................10
Porters’ Five Forces...................................................................................................................10
Competitive positioning.............................................................................................................11
Porter Generics Strategy............................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic management is considered to be the ongoing process which have the proper planning,
monitoring and analysis of the all the important assessment of the company’s in order to meet up
the certain goals and objectives. Business environment have continuous changes which need the
dynamic strategy of success as it helps in tackling present situations, chalk out different
strategies along with deploying them for the effective implementations of management
strategies. Sainsbury is an incorporated firm which is one of UK largest retailers (Patel and
Harnett, 2018). At the present company have more than 800 stores which have inclusion of the
supermarkets and convenience store. In this report, there will be clear discussion with strategic
analysis which is supported by identifying strength, weakness, opportunities & threats of the
organisation by SWOT analysis. In addition to that’s there, the report will have environmental
analysis which effects the business strategy of company. This report will provide a clear idea
about the applicability of business model which is being face competition in external
environment. In addition to that’s there will be proper level of recommendations which supports
the firm in order to improve strategically and rise the indifferent business standard.
MAIN BODY
Task 1
Sainsbury is the UK largest supermarket chains which have gone through a level of tough
competition with other respective brands such as Tesco. In the such a tough competition it is
important for Sainsbury to pay close attention on the immediate level of business environment
along with its effect on the internal business operations (Harper, 2016). In effect to that there is a
potential way to have identification external marketing environments by using more level of
effective pestle analysis which have the clear reviewing of PESTLE analysis
Political factors
The firm have faced there more level of serious consequences among the UK supermarket chains
as the leaving the European union which is more been identified as Brexit uncertainties. In
addition to that’s it turned to be difficulty for supermarkets to have affordable importation of
products from abroad.
The next impacts of Brexit uncertainties is increase in cost of production of foreign product
would likely to have t passed to the more end customers which have resulted Sainsbury to have
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hard push over the consumers in order to continue spreading as much as possible in order to have
maximization of profit.
Economic factors
The economic factor significantly played an important character in the retail industry as this have
effect demand, cost, prices and profitability. As per the current situation, UK government have
the high debts along with consumers which have impact attitude of customers. This created more
level of business pressure for Sainsbury to operates in such a business condition (Harper, 2016).
In addition, that’s as the political factor were not in favour, the company is able to have steady
growth because of its long heritages of the offering better quality products at more competitive
prices. in addition, that due to backwards of economic factor company have resulted in rampant
rate of unemployment along with high prices of food products. The company have involvements
of various strategy to reduce the cost of products in more way to offered better quality products
at more competitive prices.
Socio-cultural factors
In the todays market, the trend of customer has the major level of preference over the one stop
shopping which is about preferring of all products available under roof. The company have
introduced their non- food products have largely which is benefited from the specific strategy.
On the other hand, the social factors which have increasing female workforce along with
longevity in the level of population (Ntsiful, 2016). This have resulted in the level of declination
of domestic meal making as growing demand for certain patterns over certain types of product.
Technological factors
The technological advancement has positive impact over the business operations which have
significant growth potentiality in the online or the web-based operations. The firm have the
online business operations in moreover to increase the business market areas. This Sainsbury
online delivery services have continuous improvement with expansion in increasing the sales by
25%. This online service have viability to 88% of the United Kingdom households.
Legal factors
The government have the effective rate of the legislation and differentiated policies which have
direct impact on performance of the organization. As the legislation have introduced the new
level of tax which is advertising to have their highly processed for and along with fatty food in
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