Challenges Faced by Sainsbury: A Business Research Project

This business research project investigates the challenges faced by Sainsbury's, a major player in the UK retail sector. The study begins with an introduction outlining the research aims, objectives, rationale, and key research questions. A literature review provides context on current trends in the retail industry, including the competitive landscape and market dynamics. The research methodology section details the research investigation approach, design, and data collection methods, including the use of qualitative investigation methods and primary data collection through questionnaires. The report then discusses the challenges Sainsbury's faces, such as economic uncertainty, digital transformation, and food price declines, as well as the measures the company has adopted to create a competitive edge, including brand loyalty, product patents, and innovation. It also examines various strategies Sainsbury's can adopt to mitigate these challenges, focusing on sustainability initiatives and competitive tactics. The project concludes with recommendations for Sainsbury's to overcome these challenges and maintain its position in the competitive UK retail market.

BUSINESS RESEARCH
PROJECT

TABLE OF CONTENTS
SECTION 1: INTRODUCTION.....................................................................................................1
Aim of the study:....................................................................................................................1
Research objectives:...............................................................................................................1
Rationale of study...................................................................................................................1
Research questions.................................................................................................................2
SECTION 2: LITERATURE REVIEW..........................................................................................2
SECTION 3: RESEARCH PROCESS............................................................................................5
Research Investigation............................................................................................................5
Research Design.....................................................................................................................5
Research Philosophy..............................................................................................................6
Research Approach.................................................................................................................6
Data Collection.......................................................................................................................6
Sampling Method...................................................................................................................7
Data Analysis..........................................................................................................................7
SECTION 4: DISCUSSION AND EVALUATION.......................................................................7
SECTION 5: CONCLUSION AND RECOMMENDATIONS....................................................19
SECTION 6: REFERENCES........................................................................................................20

SECTION 1: INTRODUCTION
Research is the key part of each and every business entity which supports to management
in order to analyse current market trend and on the basis of strategies are to be framed. If there
are any kind of big problem comes under consideration at the working environment then with the
help of research accountable factors are to be analysed and then appropriate solutions are made.
The retail industry in the UK is one of the largest as well as fastest growing sector and if there
any new company comes and enter then level of competition arises. At the current research
project there are problem is related to the Sainsbury company is identified related to the
challenges which are comes from the competitors in the retail sector. At this study there are
different kinds of research methods are to be used which are like as descriptive design, inductive
approach, qualitative investigation method etc. Apart from this, on the basis of primary data
collection such as questionnaire the data are derived as well as research problem is to be
conducted by the scholar.
Aim of the study:
To analyse the challenges faced by the major supermarkets from new entrants- A case
study of Sainsbury.
Research objectives:
 To assess the current scenario of retail sector.
 To analyse the challenges which are being faced by Sainsbury.
 To evaluate measures used for creating competitive edge of firm in retail sector. To recommend different strategies to overcome potential challenges faced by Sainsbury.
Rationale of study
The current research is to be conducted for determine that which kind of problems,
challenges as well as constraints are to be faced by the Sainsbury company which is one of the
large firm within the retail sector (Kim and e Mauborgne, 2014). Further, the key reason for
conduct the study is that what kind of challenges are faced from the rivalry firms and in which
methods it will be reduced and overcome from the workplace.
Research questions
 What is the current scenario of retail sector?
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 What are the challenges which are being faced by Sainsbury?
 What are different measures used for creating competitive edge of firm in retail sector?
 What are appropriate different strategies which can be used by Sainsbury to overcome
potential challenges?
SECTION 2: LITERATURE REVIEW
Current trend of retail industry
As per the view of Fernie and Sparks (2014) in the market there are several numbers of
the industries are available under which huge number of business entities operate. In all
industries there one of the fastest growing industry is retail under which goods and services are
to be provided up to the consumers using small outlets and in the small quantity rather than in
bulk. In the UK there are various number of large and small companies operate and some of
them are having global presence. The retail sector business entities which have high brand image
are such as Tesco, Sainsbury, Morrisons, Asda, Iceland etc. In the market there are total value of
sales and revenue of the UK's retail sector is worth of 358 billion GBP at the end of an
accounting year 2016 (Yeung and Coe, 2015). Apart from this more than one third people of the
overall population of UK purchase as well as consume the products and services from the retail
business organisations which is the most fruitful for it. In addition to this, the retail sector
contribute in the growth rate of UK economy is worth of 5%. Further, due to having huge
number of retail outlets there are competition level in the chosen sector is very high ans stiff and
for that the companies have to make changes in their existing strategies.
According to Salamon (2015) competition comes into consideration in the workplace of
retail sectors is in form of prices and quality of the products. Along with this, on the basis of
several kinds of allowances also competition taken into account and to reduce it variety of
competitive strategies and techniques are adopted by seek firms. Apart from this in terms of way
of service deliver also lead to arise competition which is such as physical stores as well as online.
When one business provide its products and services through the online then working women
and customers attract at the higher number. In opposite to this, the physical stores attract lower
number of consumers of the retail products which is one of the significant part of the UK's retail
sector.
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Challenges being faced by Sainsbury
Dave (2016) states that Sainsbury faced in third year that has fall there profits down 10%
to 277 million euro. Economic Uncertainty- Sainsbury also face economic uncertainty, in past
eight months there are many problems rises, Today's president Donald Trump are now fuelling
more uncertainty in the market. There were another problems is that how to communicate with
there customers. Sainsbury also face in remove price as a competitive advantage. Sainsbury faces
some pressure to keep pricing in line with the competition. Sainsbury should have to bold about
promotions and their use. Sainsbury needs to received as equitable on price and also could claim
which is effected in consumer sentiment. Digital Transformation- Marketing is greater focus on
digital channels. Company also faced such digital problem that new digital media channel; will
become important, but Sainsbury has faced to such kind of problems. So that company should
focus to social sites to increases there profits. Food Price decline is Sainsbury face uncertainty in
trading environment so that there will be deflation in prices of food items (Teng, Wang and
Zhiqiang, 2014). In this way, 1.9% in same stores sales is now expected in the second half, so
there were no signs of return to growth yet. There were another challenges is to face by
Sainsbury that Tesco will launch aggressive war by introducing rival group on track again.
Sainsbury also declared the price cut of 450 million euro, which refers unclear profit margins in
the sectors. Shareholder's less focus in grocery- Sainsbury also faces shareholders problems that
Stakeholders does not focus on better values in grocery, there will not launch any standards so
that Sainsbury does not face there market shares gains.
Several measures adopted to create competitive edge of firm in retail sector
Pantano and Viassone, (2015) ascertained that creating a competitive advantage is not
easy but Sainsbury has to adopt several methods to create competitive edges, they are: Establish
Brand Loyalty- Every customer have complete faith about the brand they have purchased. So
that company should established a brand and try to make complete loyalty of brand by the
customers. So that, company can make a effective relationship with there customers. Patent
there Products- Company can make there products patented so that no one can use there products
without taking there permission, so that Sainsbury can make there products to make there
competitive advantages. Continually Innovate- Sainsbury should continually adopt innovation
techniques so that they can compete there competitors by launching existing products in a new
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pattern, this is done so because by using innovative techniques such as changing new styles or
pattern of the products, they can highlight there products among there competitors products
(Varley, 2014). Hire connected team members- Sainsbury also hire such employees which are
having the nature of connectivity with there team members, in this way company should hire
such a person who have good communication skills, so that they can connect with there team
members. Using long term contracts and incentives- Sainsbury also use long term contracts so
that it will help to make a contract with there team members in long time. To make there
members connected with long years, it will need to use high range of incentives. To provide
better incentives will automatically create an encouragement to there employees to work hard, in
this way company can achieve there growth. Incentives may be provided in term of bonus, extra
benefits, hospitality and education facility and perks to there employee to develop and encourage
towards the work.
Various strategies which can be adopted by Sainsbury to reduce such challenges
According to Phuangpornpitak and Tia (2013) Sainsbury can create a well defined
sources such as all type of raw materials and commodities in substantial to create the standard
independently. Company also decides that there brand name will not make any contribution to
global deforestation. In this way, company also decide to sell all the fish which are
independently certified so that it will create a substantial and strength in there position as a
leading retailer in the seafood. They also try to hit there sales in 1 million euro by trading fairly
products. Company also make an activity to double the amount of British food as well. They
also established all the food items such as meat, poultry, eggs, game and dairy products will be
sourced from suppliers who adhere to independent higher welfare standards. The company also
try to make there suppliers will also be leaders in meeting or exceeding there social and
environment standards in 2020.
As per the opinion of Garg and Garg, (2013) Between now 2020, they will continue to
reduce salt, saturated fat, fat and sugar in their own brand products and they will lead on
providing clear nutritional information, enabling there customers to take informed choice. By
2020, they also double the sales of lighter alcohol wine and reduce the average alcohol content of
there brand wine and beer. By 2020, they will put all waste to positive use. They will make sure
that there packaging has been reduced by a half as compared to 2005. Company will have
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reduced there operational carbon emission by 30 % absolute and 65% relative, compared with
2005. Through robust water stewardship they will ensure that there supply chain approach is
sustainable in areas of water vulnerability (Hristov and Reynolds, 2015). They will have worked
with their own brand supplies to reduce carbon emission across all of their own brand products
by 50% relative. By 2020, they will have encouraged over 20 million children to enjoy physical
activity in the decade. Company will have donated over 400 million euro to charitable causes in
the decades. By 2020, they will have to create 50000 new job opportunities in the UK and at
least half of there colleagues will have received externally accredited training.
SECTION 3: RESEARCH PROCESS
In the every research project for the specific case study there are research process and
methodology takes highly effective place which helps to conduct the research in appropriate
manner. It includes various kinds of methods, designs, approaches etc. which used for the current
case study (Yang, 2014). Furthermore, all the aspects which are associated with the research
process are given and explained below:
Research Investigation
In order to investigate and analyse about the competitors and determine solution there are
mainly two types of investigation methods are available which are such as qualitative and
quantitative. In the first kind of method there are overall data are to be selected and in the depth
and deeply study is to be done. Apart from this, in the quantitative techniques on the collected
data set there are statistical as well as different mathematical tools are to be implemented and
applied (Chen, Wang and Jiang, 2016). At the current scenario and case study the qualitative
kind of investigation design is to be used and applied where primary data are to be gathered.
Research Design
Apart from the research investigation there are research designs also take the important
place under which different elements are available. There are basically different kinds of
research designs which are such as descriptive, exploratory, experimental as well as explanatory
designs. In experimental research design there are new research is to be done along with the
experiments (Basic Research Designs, 2014). In exploratory there are some kinds of topics are
already analysed and discovered and some will be research. Moreover, in the explanatory kind of
research design there are any kinds of problems are not identified. Apart from the in the
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descriptive design there are study is to be done after consider the local community as well as
reliable data are to be identified and gathered.
Research Philosophy
The technique under which data are collected as well as surveyed that up to which extent
they are reliable and helps to analyse the research problem in better way. In this basically two
kinds of research philosophy are available which are positivism and interpretivism. In the first
type of the research philosophy there are facts and figures are to be analysed by considering
quantitative approaches (Jones, Hillier and Comfort, 2013). Moreover, in the interpretivism there
are research is based on the assumptions as well as values and beliefs of the local community on
which the survey is to be carried out. At he current study interpretivism kind of research
philosophy is to be used because of determining perception of the people and respondents which
are selected for survey.
Research Approach
While talking about the research approach then there are mainly two types of methods are
available which are like as inductive and deductive. In the previous kind of research approach i.e.
inductive the research starts from the general and then go in the specific and depth. Apart from
this, on the basis of deductive kind of research approach analysis goes from specific to the
general which is less used and suitable (He and et.al., 2015). For analyse about the challenges
and constraints faced by the Sainsbury from rivalry there are inductive research approach is to be
applied.
Data Collection
Apart from the above mentioned all the research techniques and methods there are data as
well as information is also one of the most important for conducting the research. There are
different kinds of ways and methods which are used in order to collect and gather data for
analyse accountable and responsible factors which are basically primary and secondary. The
informations which are determined at the first time and then used are known as primary and its
variety of sources are like as questionnaire, interview, survey, group discussion etc. On the other
side, data which are already gathered and adopted for analyse business problem by other scholar
are called secondary informations (Amorim and et.al., 2013). At the current study there primary
data are collected using the source like as questionnaire which are framed and distributed in
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managers of the chosen entity. Further, to collect secondary kind of data books as well as other
articles are to be used.
Sampling Method
Art the current case the study is carried out on the overall firm and it is not possible to
distribute questionnaire to whole managers. For this there are sample data are necessary to
collect and then appropriate reviews are to be taken to do effective analysis. There are different
probabilistic and non-probabilistic methods are available under which stratified, convenience,
simple random and cluster techniques are considered (Nepal and Jamasb, 2015). At the present
research project there are simple random sampling technique is adopted by the investigator and
sample of 10 managers of the Sainsbury company is taken.
Data Analysis
The data which are collected and then derived from the respondents in the above section
are to be analysed using different methods are techniques. There are generally two ways for
analyse the gathered data which are like as thematic as well as statistical. To analyse the data in
current research project thematic analysis is adopted where on the basis of questionnaire themes
are to be prepared (Prajogo and Sohal, 2013).
SECTION 4: DISCUSSION AND EVALUATION
At the section fourth there are data are to be collected using primary source which is like
as questionnaire. It is a part of the qualitative research investigation and taken into account by
the scholar where questionnaire prepared and hen distribute among the 10 managers of the
selected business entity of retail sector (What is Qualitative Research?, 2017). Apart from this,
by considering the thematic analysis method the data are to be evaluated. Furthermore,
questionnaire and data evaluation both are stated as below:
Research Questionnaire
Name _________________
Gender ________________
Age group under which you belong ?
 25 to 35 Years
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 35 to 45 Years
 45 to 55 Years
 Above 55 Years
Que. 1: Do you know about the concept of competition in the retail industry ?
 Yes
 No
Que. 2: Do you agree that, new retail firms giving tough and stiff competition to the Sainsbury ?
 Highly agree
 Agree
 Neutral
 Disagree
 Highly disagree
Que. 3: Do you agree that, Sainsbury performing well in the retail industry of UK as compare to
those firms which newly enter in retail sector ?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
Que. 4: Do you think that, there are any challenges faced by Sainsbury in the retail sector after
entering new retailers ?
 Yes
 No
Que. 5: In which context Sainsbury facing various problems and challenges from the existing
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and new entrants of retail industry ?
 Price
 Quality of products and services
 Schemes and discount offers
 Way to deliver goods and services
Que. 6: Do you agree that, loyalty schemes framed and adopted by the Sainsbury are highly
effective as compare to rival retail firms ?
 Highly agree
 Agree
 Neutral
 Disagree
 Highly disagree
Que. 7: Do you think entry barriers of the retail industry will surpass by new entrants ?
 Yes
 No
Que. 8: Which are the factors you consider while providing your products for your customers ?
 Current level of competition
 Quality of service and product
 Pricing aspect
Que. 9: Which strategy you would like to suggest to the Sainsbury to face the challenges ?
 Advertising through social media
 Promotional strategies in public events
 Sponsorship method
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Theme 1: Managers know about the concept of competition in the retail industry.
Que. 1: Do you know about the concept of competition in the retail industry ? Respondents
Yes 7
No 3
10
Yes No
0
1
2
3
4
5
6
7
8
7
3
Findings and Analysis
The above stated analysis clear;y states that most of the respondents such as managers
who are working in the Salisbury are highly aware about the current concept like as competition
which comes under the retail sector. Among the total 10 managers of the firm there are 7 aware
and know that competition is the concept under which more number of entities provide similar
products and services. On the other side, when talking about the negative aspect then 3 managers
of the company not know that what is the competition and how it affects to the smooth process of
business.
Theme 2: Most of the managers highly agree that new retail firms giving tough and stiff
competition to the Sainsbury.
Que. 2: Do you agree that, new retail firms giving tough and stiff competition to Respondents
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