Analyzing Business Stakeholders and Marketing Theories

The assignment provided is a detailed analysis of business stakeholders and marketing theories. It covers topics such as Pestle Analysis, Porter Five Forces Model, Value Chain Analysis, and Strategic Management. The document also includes references to various books, journals, and online resources for further reading. This assignment is suitable for students studying business and management courses.

Strategy and
Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Analysing the external environment of Sainsbury.............................................................1
2. Industrial analysis...............................................................................................................3
3 Internal analysis...................................................................................................................4
4 Swot analysis.......................................................................................................................7
TASK 2..........................................................................................................................................10
1. Identifying set of strategies for company.........................................................................10
2 Business Model.................................................................................................................14
Conclusion.....................................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business are as vital Or overlooked as that of developing a strategy for success and
growth. Entrepreneurs are seemed to be overflowing and enthusiasm to launch their business
uncertain for failures because hey never stop to define a workable strategy that sets them apart
from their competitors. Strategic management refers to the continuous planning, monitoring,
analysing and assessment of all that is essential for an organisation to meet its goal and
objectives.
Strategic entrepreneurship is a unique, distinctive construction through which enterprise
are enabled to create wealth.
The Sainsbury's company is being selected for conducting this study. The Sansbury is the
second largest chain of super market In UK. This organisation is being selected in order to
explain the concept of strategy and entrepreneurship.
The aim of the study is to demonstrate the critical awareness of current issues in the field
of strategic management. The research will have focus on analysing various information in order
to evaluate relevance and synthesis in the context of new business development and stratergy. It
objectives is to develop understanding about the way of translating strategies into coherent
business model.
TASK 1
1. Analysing the external environment of Sainsbury
The PESTLE analysis can be used to analyse the effect of various external factors on
Firm. The external environment may have positive and negative effect on Enterprise. This tool
helps business unit in minimising the negative effect of these factors. This technique assists
business unit in exploring and capturing new opportunities in the environment (Hudson, 2017.)
The various external environment factors are :
Political: The main political forces are tax, government policies, Code of conduct related to
business, Political stability. These all are the factors that have effect on business activities. Due
to ongoing financial instability in country, governments motivates and provides support to
Entrepreneur to conduct their business in smooth way. The legal authorise does so by framing
linen t policies and code of conduct for business. For instance UK government has recently
adopted the VAT tax that affect the Sainsbury, Rise in the tax rate for the enterprise has negative
impact for the Organisation. Such kind of changes and modification by the government has
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direct effect on firm performance and also the profitability that is generated by the Sainsburry.
Positive impact is like update the strategies and plan of marketing depends on the updated
policies.
Economic: An economic growth has the positive impact on Sainsbury business activity as it is
dealing in supermarket that is the main industry. The economic instability in the country may
have negative effect on the financial performance of organisation. The forces have direct
consequences on the firm purchasing and selling power. The company can measures its
performance on the basis of the current economic situation. Various economic forces include
method of income distribution, Exchange rate, income level of individual etc. The income of
individual have great influence on customer behaviour. This has great effect on the company
profits. Recently the increase in exchange rate has given opportunity to Sainsburry to increase its
profit margin. On the other hand earlier the inflation in prices of products has forced
organisation to reduce their profit margin and transactional benefit for firm.
Social:The various social factors include population, market trend, fashion, culture etc.
Decrement in morality and birth rate has been analysed in last few years. Changes in taste and
preference has been identified with an account of Sainsburry. The people have adopted and
giving more preference to online shopping. This has lead to the decrease in demand for company
product.
Technological:Technology factors play significant role in supply chain and logistic management
in business unit. Technological factors have direct effect on the productivity and quality of
product. The Saisburry has adopted new and advanced technology that has assisted organisation
in increasing their production capacity and enhancing their quality of product. This has enabled
organisation to produce innovative product. This has allowed firm to differentiate their product
from that of its competitor and to gain competitive advantage. The negative effect this factors is
that increase in price of machinery can add higher cost for business unit.
Environment:The environmental factors include both internal and external factors. The internal
factors that have effect on business are: employees relationship, workers behaviour, organisation
culture this forces have great effect on organisational performance as well as on its reputation
and position in the market.
Legal:The legal factors include various forces such as government policies, laws, etc. this may
have effect on business operation and on its sustainability. There are many laws that have effect
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on the enterprise as it is dealing in many products and services. Complying with all laws and
rules it will help business entity in improving their performance in the market. These factors may
affect business operation in great depth.
2. Industrial analysis
Porter 5 forces model can be used in order to for analysing competition of business. It
can assist sainsburry in identifying its competitors and their strategies. It draws from industrial
organisation economic to drive five forces that can help enterprise in evaluating the intensity of
competition. Saisburry five forces model intends to examine five separate forces that judge
extend of competition in supermarket industry.
Sainsbury is a leading supermarket in UK with its competition mainly Tesco, Asda,
Morrisons PLC. These competitors are having large market share. The significant reason for rise
in their market share is continuous consolidation of supermarket segment.
The grocery market is defined by low margins, as the food section is prostrate to fierce
competition. The grocery retailers have been able to gain customer loyalty by delivering their
product at reasonable price.
The big competitors like Tesco have large scale of operations. There are barriers to entry
for new organisation are generally low, however scale of operation can play significant role in
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Illustration 1: Pestle Analysis
Source: (Marketing Theories- Pestle Analysis, 2017)

gaining competition by Sainsbury firm. The entry of big enterprise can create mobility barriers
for medium and small firms due to advantages in buying and distribution power. Generaly small
enterprises does not have ability to compete on the basis of price, products, offering and
geographical factors.
3 Internal analysis
Value chain analysis refers to the strategical tools used for examine internal
organisational activities. The aim of this technique is to identify which activities are most
valuable and that can generate more opportunities for organisation .It also includes determining
the activities that could be improved for gaining competitive advantage.
Primary activities
Inbound Logistics
The Saisburry inbound logistic activities include complex process and involve supply of
much quantity of product categories. Saisburry have its 1415 retail stores in global market.
Economies of scale due to its large scale of operational activities is the major source for value
creation. The organisation has the potential to make investment in order to increase its capacity
of logistics so that advantage of economies of scale can be gained to a greater extend. The
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Illustration 2: Porter Five Forces Model
Source:(Porter Five Forces , 2013)

organisation has the history of poor supplier treatment under the previous leadership that
includes the case of delay in making payment to suppliers that has lead to decrease in firm
profits. The unjustified fines and unnecessary obligation have to be beard by Sainsburry. This
factors also have negative implications on various aspect of supply chain practices. However the
new manager has committed to form effective strategies and strategical relationship with its
suppliers (Zostautiene, Zvireliene and Susniene 2017)
Operational activities
Sainsburry is dealing in supermarket and offering number of products to its customer. Its
has to perform number of operational activities, Its operation can be categorised into two
formats
Format Number Total space
Supermarket 598 21,190,9000(AGM 2014)
Convenience stores 714 1629000
TOTAL 1312 22819000(AGM 2014)
:
1. Convince stores :This unit indicates the main activities of Sainsburr. With more than 20
million shopping trips made a thousand of Sainsburry shops in more than 11 countries
globally. The company has extensive scope of its operation. It also operates sainsbury
Online internet shopping services and consist of portfolio of E 8.6 billion. It is the second
largest supermarket chain in UK. The organisation operates stores in following format:
Metro: The enterprise has established their food stores mainly in developed countries. The firm
metro store are offering wide range of food and smaller portion of general food items.
Express: They have established smaller size of stores that intends to deliver fresh food as close
as possible to home and work.
Extra: The organisation has established the largest stores to offer customer the greatest choice of
products. These stores sell all type of products such as electrical equipment, clothing, hardware,
heath and beauty services and goods, financial services, etc.
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Superstores: Store of this type of format offers a wide range of food and other products and
services. These stores also include bakeries and fresh food counters.
2. Supermarket segment:In 2010 Sainsbury has opened its one of its largest store in UK and
it is the largest store in UK. The stores in Supermarket category all have similar design
and operational activities. Recently company has opened a new departmental store
format that is established in New Nine Elms carrying store concessions like Habitat,
Aggro, Sushi Bar, and Food Hall.
Outbound logistics
Cost effectiveness delivery and flexibility are the two major factors that are assisting firm in
generating value. The Sainsbury offers several home delivery options for making online
purchase directly from the company. This process include delivery of GBP subject to availability
of stock, It also offers saver plan that include free grocery delivery for one week and next day
collect plan. The organisation also offers home delivery serve only in case purchase is being
made by customer from Sainsburry physical stores.
Marketing and sales
Little support to single customer assist firm in developing brand image in the market. Sainsbury
marketing strategy tries to associate the brand with competitive prices , wide variety and range
of goods and best quality balance. The main objective of marketing strategy of Saisbury is to
increase its market share and gain customer loyalty. The firm can achieve this objective by
adopting product developmental and market diversification strategy. Product development
strategy will help business unit in attracting more number of customers and retaining existing
customers. Product development strategy includes developing product, adding more
characteristics in existing product, and introducing innovative good. The diversification strategy
enable firm to increase their market share and explore new market opportunities. Using this
strategy The business entity can launch its existing product into new market and launch new
product in existing market.
Service
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Customer loyalty that is based on frequency OF shopping and an average weekly spend has
increased during 2016. There is no doubt that change in leadership has played significant role in
increase in demand for organisational product and services.
Sainsbury business strategy emphasizes on cost reduction, improving customer services and
quality of product. But it is very difficult for sainsburry to reduce the prices of their product and
services.
From the above analysis it has been identified that in case of convenience store format the
organisation can establish large stores that offers wide range of services and products to the
customer. This will help business entity in gaining competitive advantage.
In the formant of supermarket similar design is used by the organisation. However, the launch of
new departmental format can assist business unit in reducing competition.
Outbound logistics can be used by firm for increasing their profit and revenue as compared to its
competitors product. This method will allow organisation to develop innovative item in order to
eliminate competition. It allows firm to make effective strategy in order to gain competitive
advantage.
Effective marketing and advertising strategy can support enterprise in winning over competitors.
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Illustration 3: Value chain Analysis
Source:(Value chain Analysis,2013)

4 Swot analysis
Swot analysis can be used by business unit for analysing its internal strength and
weakness. It also assists enterprise in identifying various threats and opportunities. This
technique enables organisation to transform their weakens into their strengths. It also includes
helping firm in exploring and capturing various opportunities. The main objective of using this
method is to allow business entity to adopt various measures in order to reduce various threat
and make appropriate use of their strength for gaining competitive advantage. It aids manager in
taking accurate and effective decision. Swot analysis is the effective technique that helps firm to
identify their position in market in relation to its business environment in which the business is
operating. It allows enterprise to allocate their resources in effective and efficient manner. It
provides the way in which organisation can allocate resources in order to achieve their goals and
objectives. The swot analysis prove business entity to develove understanding about itself in
terms of strategies and resources.
Strength :
 It is positioned as the UK third largest supermarket.
 The organisation is one of the big four supermarket chains in UK.
 It has highly experienced leadership team.
 The company has formulated and implemented effective marketing and advertising
strategy.
 It has 550 supermarket stores and 350 convenience stores located at highly populated
area.
 The enterprise each store typically stock around 30,000 lines own labelled products.
Others strengths are:
Diversified Investments- The enterprise consist of diversified individual business unit that are
not correlated. This has allowed organisation to reduce risk of loss in individual business unit. It
has enabled firm to anticipate various threats that may have great impact on organisation
performance.
IT structures-The Sainsbury has knowledge about the significance of reaching a wider market
by making use of affordable and wide platform of internet. By using of technology such as
online checkout system it has increased sales by 20 percent in present financial year. It has
introduced promotional strategy which includes Click and collect in 160 outlets In case
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consumer buy company product online. The outlets store has enabled business unit to increase
profits margins and earn revenue.
Large capital investment and wide stores network:Large capital investment has allowed firm to
increase its supermarket space. It has provided benefit to reach its customers as soon as possible
and increase its market share as well as enhance market growth.
Quality human resource:The supermarket understand the importance of human resource
management and invest lot of money in providing training to its employees. The organisation
has own employees training college. The qualified and skilled employees provide services to
their client in professional manner which helped firm in attracting new customers and reating
existing clients (Pitelis. and Runde. 2017)
Weakness:
 The organisation is charging high prices for food. The inflation in the country has
forced Sainsburry to increase the price of their food items.
 Lack on competitive strength
 The company being the oldest supermarket has started operations ahead of
competitors like AsDA and TESCO and it has not exploited the opportunities to
grow and maintain their market share.
 The organisations has taken a long time to make changes and modifications in
strategies. Due to this the firm has to face many issues related to inventory and
supply chain management that has negative effect on its quality of products and
on customers services.
 It has changed its leader and management style after suffering loss.
 The organisation has not made sufficient investment in international markets
Specifically in China. The company do not have understanding about the trends
and business environment as compared to its competitors.
Opportunities:
 The business entity has the opportunity and potential to enter into new market.
 Sainsbury can develop self checkout machines in order to continue its operation for 24
hours.
 As the business unit is offering online shopping option to its customer it can increase its
market share and number of customer by just adding new effective services.
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 It has opportunity to expand their business in growing economic countries like Africa,
Asia etc.
Other opportunities are:
Wide market- The organisation is operating in many fast growing countries that have huge
population. They are offering variety of product and services in wide market. It has opportunity
to increase its supermarket space and reach customer.
Performing economy In UK and China- In these countries' food prices that have great impact on
Inflation are stable. This indicate performance Of the economy and affordably of food
commodities. The organisation has opportunity to increase its profit margins. UK and China are
having the sixth largest economy that indicates the high purchasing power of the consumer in
particular country.
It has opportunity to increase its sale by providing healthy and quality food.
Organisation is in very god position to benefit from wide demand of healthy food.
Company has opportunity to provide online facility to its customer.
It has opportunity to expands its core business activities.
Threats:
 Various economic factors such as rise in prices of product, increased tax rate, economic
recession in the country have direct impact on financial performances and profitability of
firm.
 Increasing globalisation can be a major challenge and can also create opportunity for
enterprise.
 Bargaining power of buyers and suppliers.
Other threats are:
Increase in Globalisation,
Great influence of social factors.
High competitive industry.
Hard yo achieve high profitability.
Rising cost of organisation.
Legal and environmental laws.
`
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Competition -The major competitors OF Sainsburry are TESCo and Asda. Tesco may
implement its low price strategy that may have effect on Sainsburry profitability and market
share. Other competitors to have similar operation that may lead to increase in competition.
Prone Online Platform-the threat of cyber attacks can lead to important losses in Saisbury
online strategy. The cyber crime has the ability to create threat organisation that has invested a
huge amount of money and resources in the infrastructure development in order to reach quickly
to consumers. Computer malfunctioning is another threat for enterprise that may have great
effect on the operational efficiency in its stores.
It has been concluded from above analysis that Sainsbury has faced loss in previous years
besides this it is able to earn profit due to change in management and by modifying its
investment strategies. The enterprise has faced financial crisis in subsequent years. The reason
behind this situation was its ineffective diversification strategy and ability to reach wide
consumer base. However, enterprise has to face competition in both domestic and global market.
The competition based prices may have great impact on firm revenue and profitability(Galati.
and Moessner. 2017)
TASK 2
1. Identifying set of strategies for company
TOWS MATRIX
It involves the same process of listing strength, weaknesses, opportunities and threats as
in Swot analysis, but in case of Tows matrix threats and opportunities are examined fist then
strength and weaknesses are examined last. Tows matrix refers to the classic business tool.It
allows enterprise to match its internal strength with external opportunities' and to develop those
strategies that have potential to help firm in achieving success.
The Tows analysis of Sainsbury:
Internal Strength and opportunities
 It is the second largest chain of supermarkets in UK. With 16.9 percent share of super
market sector. It has the opportunity to increase its sales and profit market. It can also
enter new market for exploring more opportunities. Sainsburry can use this opportunity
for enhancing their brand image and can expands its core business activities.
 The company has wide outlet network. Established supply chain and god supplier
relation could allow better price negotiation for Sainsbury, which can be paired with
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lower tax. This could help Sainsbury in gaining price advantage in competitive
environment.
 Highly skilled and trained employees. The organization has the potential to improve their
quality of services and to provides services in professional manner. This can provide
opportunity to firm to attract more numbers of customers and make healthy relationship
with them. This will assist business unit in increasing their profitability and revenue.
 Diversified investment.-This provides business unit an advantage to reduce risk and
minimise threats.
 Large capital investments-This investment will provide an opportunity to business unit to
increase its space of its supermarket and enable enterprise to reach wide client base.
 Quality human resource -The effective human resource management will support
organisation in making such strategy that has potential to drive firm towards success.
 Effective use of technology-The adoption of advanced technology allow business unit to
produce innovative product in order to attract costumers.
Weaknesses and opportunities
Ineffective pricing strategy.
The organisation does not posses competitive strength.
It does not have ability to explore and use opportunities in effective way.
The company has to suffer financial crisis- Focussing on the emerging cloth and fod market can
assist Sainsburry in enhancing their profitability and overcoming financial cricis.
Decrease in sale of food items- Declining Sales can be encountered by emphasizing on latest
trends related to food items, by delivering more fresh food to increase sales.
Lack of innovative skills.-This would allow firm to have emphasized on need and significance of
innovation will encourage business unit to learn methods that can be used for developing new
product. This will also allow them to use advance technology for producing good which will
further lead to increase in operational efficiency.
Ineffective product development strategy.-This will enable organisation to haver their focus on
development of such products which are demanded by their clients in the
market(Economica.Deresky. 2017)
Strength and threats:
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The Sainsbury it the largest supermarket in UK It can gain competitive advantage by
introducing high discounts offers and It can use its scale of operation to reduce competition.
Effect of various economic factors on purchasing and distribution power can be eliminated by
mass buying.
The Sainsabury can maintain its brand image in market by developing such quality of
product that provides satisfaction to their clients. This will assist in gaining customer loyalty and
trust.
Weaknesses and threats:
The main reason for financial cricis in the company is the growth in discount factors and
launching of new stores. The areas on which thee Sainsbury require to have emphasized on to
close sum of its supermarket and add open more number of convenience stores (Vedung. 2017)
The new set of strategies that has been adopted By sainsabury to strengthened their
leadership team to drive business success and growth are:
1. Differentiating Further through food Quality:According to this strategy of Sainsbury,
the enterprise expect to invest further on improving the quality of food product and
making it different from its competitors food item. It has formulated three year
programmes in order to enhance the Quality of 3000 products, Sainsburry is now had
focus on 125 significant range of reviews that will help them to increase their sales in
2017.Sainsbury justification regarding developing more distinctive brand offering that
will motivate customers to buy companies product.
2. Engaging more buyers and shoppers mission:The Sainsbury organisation is taking
initiative to increase its relevancy to smaller basket customers. The enterprise aims at
targeting non-metropolitan, middle class family as their customer base. It has focuses on
developing energetic working environment in order to attract more number of clients and
provide the ease in shopping. The objective of enterprise is to provide Fresh and quality
food in appropriate way. This strategy can assist firm in increasing demand for their
products .
3. Delivering on value- sainsburry is taking action to reduce cost pressure. The business
unit is following Sterling's Devaluation method in order to gain and maintain customer
loyalty. The organisation has minimised its promotional activities last year , daily base
prices is now providing value credential benefit to enterprise. Sainsbury with the support
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of LFL transaction and customer satisfaction has enabled firm to maintain their position
in the market and make successful improvement in value perception. This strategy has
allowed business unit to target price investment in goods that will help business entity in
delivering huge quality of goods to wide customer base.
The organisation focus on delivery of heath and beauty products has supported Sainsbury in
comparing their price with ALDI. Most of the retailers and supermarket sector has analysed that
rise in food prices in the future will have great impact on financial stability of the industry.
Retailer have planned for clear incentive to incline up communication on the basis of
affordability. On the other hand suppliers are required to work with organisation in order to
examine ways to conduct processes in efficient manner and to reduce the cost of supply chain
management.
4. Integrating Argos and Habitat:The Saisbutrry has opportunity to embed Argos fully into
business operation. This strategy has enabled business unit to opens its Aggro stores and
create one more source for generating revenue and increasing profitability. This aggro s
outlet has created further opportunities for firm , for instance it has provided various
sales channel for different products such as clothes, sainsbury bank. This has been
possible through Fast track Hour delivery of service and by identifying opportunities for
making delivery of bulk item.
5. Building Online: This strategy has supported investment and helped firm to make
experiment with ethos in order to unlock emerging opportunities. The progress has
demonstrated improvement to underlying grocery online Proposition with focus on the
quality of good and door step services in order to gain customer loyalty. The schemes
that was Developed By Sainsburry “Click and Collect” now available at over 200
supermarkets. More than 30 outlets now offer same delivery ensuring that Sainsburry can
has the potential to compete with the rapid delivery option of competitors. The
organisation new app is gaining traction with its clients , providing important platform to
supplies to engage with company client (Kew. and Stredwick 2017)
2 Business Model
Business canvas model refers to the strategic management and lean start up template that can be
used for creating new or documenting excising business models. The Canvas approach includes
visual charts with elements that describes the products and services that are being offered by
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company. It helps business unit in aligning their activities by presenting illustration potential
trade off's. This approach is based on concept of similarities of wide range of business model
conceptualisations. The firm with thee support of this template can easily define their business
model.(Moghaddam, Tabesh Weber and Azarpanah, 2017.)
Infrastructure
Key activities: The most important activity of Sainsbury include outbound logistic services that
is creating value proposition for enterprises. The sainsbury can adopt strategy In order to create
an efficient supply chain to minimise cost.
Key resources:The important resources are those which is required by organisation to
create or add value to its clients. The business unit considered resources as an asset which is
required by business entity in order to increase sustainability and provide assistance to business
unit. These resources include human resources, Physical and financial resources. In saisbury
Quality human resource has assisted the organisation in order to provide services to their
customers by providing training to its employees. It is recommended to human resource manger
In Sainsburry that it should frame various beneficial policies for workers in order to motivate
them to work for benefit of firm. The personnel manager is required to adopt various
performance management techniques and should ensure that various resources in organisation
are being used in effective and efficient way.
It is suggested to company that it should formulate effective and appropriate investment
strategy in order to reduce the threat of losses.
Partner network:Sainsburry has wide supply chain and logistics network.It also has wide
network of outlets. Wide supply and logistic network has provided the opportunity to firm to
deliver quick services to their client. It has enabled organisation to reach wide customer base.On
the other hand wide outlet network has allowed business unit to increase their profitability and
revenue .It is recommended top the company that it should focus on opening more number of
convenience stores and should close some of supermarket outlets.
Offering
Value proposition: Value proportion refers to the collection of various good and services in
order to cater the needs and demands of customer. The company is providing wide range of
unique quality of products to its clients that has helped organisation to gain competitive
advantage. Sainsburry already offering click and collect schemes for customer that has enabled
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firm to add value for customers. It is suggested to company that it should have focus on
developing innovative product in order to differentiate their products from that of its
competitors. The organisation can adopt effective pricing strategy to attract more number of
customers.
Customer:
Customer segment:It is essential for the business entity to identify base customer in order to
create effective business model.The customer can be categorised on various basis such as
according to their needs ,wants and attributes in order to ensure systematic and proper
implementation of corporate strategy fulfilling the needs of clients. The different form of
customer segment include :
Mass market- There is no segmentation done by the organisation. The firm serve their product to
huge population.
Niche market: The customer segmentation is done by enterprise on the basis of needs and
demands of their clients.
Segmented:The organisation segments market on the basis of customers characteristics such as
gender, age group, income etc.
Diversify :A business unit offer their product and services to multiple consumers segment on the
basis of different needs and demand by their variety of customers.
Sainsbury is Focussing on middle income group people. It has been recommended to
firm that it should serve their product in diversified market and it can also offer their niche
market. Diversified market segment will assist business entity in increasing their revenue and
profitability by enabling them to offer their product to multiple customer segment. On the hand
Nice market will help business entity in producing and focussing on Quality of their product.
This market will allow firm to reduce competition .
Channels:Channel is the way through with company delivers its value proposition to its clients.
The sainsbury has adopted communication as a channel to offer various gods and services. It is
recommended to organisation to adopt effective channel in order to deliver fast cost effective
services to its clients. The enterprise can create its own channel for delivering value proportion.
Customer Relationship: It is very essential for the company to identify form relationship in order
to survive and to achieve success. Saisburry is using Personal assistance method to provide
support to employees and helping them to maintain healthy relationship with customers. It
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suggested to the organisation to adopt method of Dedicated personal assistance .As this method
will assist firm in retaining long term relationship with customer and gaining their loyalty
(Bauer. Eckhard, Edge and Knill 2017)
Customer relationship- There are various method through which Saisburry can develop healthy
relationship with its clients. These methods are Personal assistance, Dedicated personal
assistance, Self-service, Automated services, communities and co- creation. The dedicated
personal assistance and personal assistance both method can be used by company. Personal
assistance will provide an organisation an opportunity to interact directly with consumer and
encourage them to buy enterprise product. On the other hand communities is the other effective
method that can be used by firm for maintaining relationship and gaining customer loyalty. As
building community allows business unit to communicate information about their products and
services directly to their clients.
Channels-It refers to the medium through which Sainsburry provides value proposition to its
customers. There are various types of channels that can be used by sainsburry and it can select
channel on the basis of easiness, effectiveness, efficiency and on the basis of cost of investment.
There are basically two kinds of channel. The channels that are owned by organisations include
partner channel that include distributors. The business unit can select either one or combinations
of both channels.
It is required by business entity to analyse customer channel. Selections of this channel is
totally dependent on customer. Whether they want to measure the strength of the chosen channel
by conducting Swot analysis. The company has the potential to create new customer channel.
Revenue streams- Revenue stream refers to the method that is being followed by enterprise in
order to motivate its target customer to purchase firm product and services. There are various
ways that can be adopted by Saisburry for generating revenue. These are selling assets,
generating revenue in form of usage and subscription fees., Leasing/renting and lending. It is
very essential for business entity to identify an effectiveness of price for goods and services that
can arrived through the procedure of elimination.
Key partnership- partnership strategy can be adopted by Sainsbury in order to minimise various
risk associated with business. This strategy will help firm in expanding its core business
activities and increasing its market share.It is very significant for firm to identifying partners and
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It should create partnership plan for future. Analysis of partner can be done by examining
organisational relationship with its partners. The company is required to determine the need and
ways improvement in relationship. Joint venture and organisation healthy relationship with its
supplier will assist business unit in increasing market share and expanding business.
Conclusion
The report has provided various suggestion that can be used by organisation in order to
gain profitability and long term sustainability. It has been concluded by the study that Saisburry
has to make many changes and modification in their existing strategy in order to gain
competitive advantage. Internal and External analysis has been conducted and from that it has
been identified that Saisbury has potential and opportunities to transform its weakness into
opportunity and to minimise its threats. Through business model study has explained the various
activities that are performed by organisation. It has highlighted the core activities that has
supported Sainsbury in achieving success and fostering growth.
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REFERENCES
Books And Journals
Hudson. M. 2017. MANAGING WITHOUT PROFIT. DIRECTORY OF SOCIAL CHANG.
Zostautiene.D. Zvireliene. R. and Susniene D. 2017. Changes of marketing culture expression:
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