Assessment 2: Strategic Analysis of Sainsbury's Using TOWS and CANVAS

This report presents a strategic analysis of Sainsbury's, a leading supermarket chain, utilizing the TOWS matrix and the CANVAS model. The TOWS matrix assesses Sainsbury's internal strengths and weaknesses against external opportunities and threats, formulating strategies such as maximizing strengths (SO), minimizing weaknesses and maximizing opportunities (WO), maximizing strengths to avoid threats (ST), and reducing weaknesses and threats (WT). The report then applies the CANVAS model, dissecting Sainsbury's business model across key elements like customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, and key partnerships. The analysis emphasizes the importance of adapting to intense competition, expanding into new markets, and leveraging resources effectively. The report also highlights the need for effective marketing strategies, innovative product offerings, and strategic partnerships to maintain and improve Sainsbury's market position. The report concludes by emphasizing the significance of implementing the strategies appropriately and monitoring their execution.

STRATEGY AND ENTERPRENUERSHIP

Table of Contents
ASSESSMENT 2.............................................................................................................................3
(1).................................................................................................................................................3
(2).................................................................................................................................................5
REFERENCES................................................................................................................................8

ASSESSMENT 2
This assessment lay emphasizes on TOWS matrix and will also develop the CANVAS
model of Sainsbury.
(1)
TOWS matrix is used as a business tool for formulating strategies for business in an
successful manner. It is vital that analysis of external and internal business environment should
be done for constructing and developing this matrix. It supports in understanding the strategic
choices in a better way by identifying positive strengths and reducing the negative weaknesses of
the enterprise (Kim, 2016). By designing TOWS matrix effective strategies can be formed for
making optimum utilization of firm's resources. It also helps in reducing the threats and
challenges that are occurring due to diverse external and internal factors. The TOWS matrix for
the company is as follow
THREATS – Comapny is facing intense
competituion due to various external and
internal business factors. Many new companies
are trying to establish their business in
supermarket industry which is creating big threat
for the organization.
OPPORTUNITIES – Saisbury's has opportunity
to expand its business operationsw in new
market area. Growing economies of the world
like Asian and Africal countries are
WEAKNESSES – Rising food prices has
created chalenge for the company for offering
reasonalble priced products for clients of
business. In addition to this intense competition
offered by rival comanies also cretaes challenge
for the company to maintain their market share.
STRENGTHS – Comapny is a leading
supermarket chain and offers diverse range of
products for its consumers. More than 30000
commodities are offered in the supermarket
chain of the company and own label brands are
also offered by the enterprise. More than 550
supermarket and convenience store of the
comany are working more than 150000
employees are rendering services to clients of
business.
Sainsbury's can adopt various effective marketing strategies for gaining market share and strong
market positions. It is vital that proper analysis of external and internal environment should be
done for designing effective strategies for the business. Various innovative and effective
strategies which can be made by companies are as follows-
The SO strategy :- Sainsbury's can maximize its internal strength for making improvements in
its existing performance. Internal business factors also affects the working of the enterprise and

due to it overall executions of operations can be effected. More than 150000 employees are
working with the organization and human resource are most significant assets of the business.
Company can organize training and development program for making improvements in skills
and knowledge of the enterprise (Team, 2013). Seminars and conferences can also be arranged
for imparting new knowledge and competence to the existing staff members. It will support in
enhancing productivity of the staff members and they will perform there assigned task in more
effective mode. A recruitment and selection process can be organized for employing more staff
members in the company and it will support in expanding the operations of the business.
Company can open there stores in new location for selling the products to a large consumer base
and it will also aid in increasing financial revenue of the company.
(SOURCE- Pehrsson, 2007 )
The WO strategy :- company can minimize its weakness and maximize its opportunities for
increasing profitability of the business. Company can identify new sources of suppliers that can
offer superior quality products at a lower price. It will support in reducing the overall investment
cost of the business. Company can conduct a market analysis for identifying new market areas
for selling products of the company to a larger consumer base (Posner, 2014). Use of online
platform can also be done for covering a wide geographical area for selling commodities of the
venture. Sales executives of the business can be trained in an efficient manner for providing
better and effective services to clients of business.
Illustration 1: TOWS MATRIX STRATEGIES

The ST strategy :- Sainsbury's can maximize its strengths for avoiding the threats that are
occurring in external and internal business environment. It is a leading retail chain store which
offers more than 30000 products through its supermarket chain. There are more than 550 stores
of the enterprise and company can add more number of stores for expanding its operations in
new market areas (Pawliczek and Rössler, 2016). New innovations and modifications can be
done in the existing product ranges for offering better services and products to the consumers.
Investments can be done in the research and development department of the organization so that
they can design the goods in more innovative way.
The WT strategy :- company can reduce the weaknesses and threats by making effective
strategies for performing their business operations in an effective manner. In this enterprise can
adopt retrenchment strategy for saving its market share and holding market positions of the
venture. Merger and acquisition technique can be adopted for expanding the business operations
by merging with any other established firm or by doing acquisition of smaller firm (Parnell,
2010). It will support in making use of existing distributional channel of the enterprise in an
effective manner. Partnerships can also be done with other companies for selling the
commodities of the enterprise to a larger consumer base. All the methods will support in
rendering innovative and quality services for clients of business.
(2)
CANVAS is a innovative technique for developing a business model which will support
in achieving the desired objectives of the enterprise in a successful mode. It supports in
developing value propositions for the company and also aids in taking decisions related to
infrastructure, finance and customers (Ghezzi, 2013). It is vital that proper data and information
should be collected for developing this model in an effective manner. There are 9 significant
elements in CANVAS model which are needed to be considered while making business model
for the enterprise. Various opportunities are avail;able for Sainsbury's firm for expanding its
business operations. New supermarket stores can be opened in new market areas of African and
Asian countries. It is vital that proper market research should be conducted for executing the
operations of business in new market areas (Pehrsson, 2007). The major elements for CANVAS
model are as follows-
Customer segments Sainsbury's Company offers more than 30000 products through its
supermarket chain. Company can target specific group of consumers for

selling there products in better way. It will support in designing
advertisements for the company in more innovative and attractive
manner. Brand awareness about the attributes and features of products
offered by the enterprise can be created by targeting a particular market
segment area.
Value propositions Enterprise can design its advertisements in more cost effective manner.
Use of social networking platform can also be taken for reaching to a
larger consumer base via online platform. Younger consumers can be
informed about diverse range of products offered by the company and it
will also support in doing cost effective advertising of products offered
by the enterprise.
Channels New supermarket stores of Sainsbury's can be opened for selling the
products of the enterprise. Sales executives need to be hired for running
the operations of business in an successful manner. Distributional
channel needs to be more effective and it is required that easy
availability of products should be ensured to consumers.
Customer relationships News letters and emails can be sent to customers for maintaining
positive relationship with the business clients. It will also assist in
informing the buyers about attributes and features of products offered
by the enterprise. Mobile phone calls and messages can also be sent to
clients for informing them about the commodities which are offered
through retail stores of Sainsbury's.
Revenue streams Revenues are earned majorly by selling products of the enterprise
through Supermarket chain of Sainsbury's. More number of products
can be added in the product range for gaining more financial revenues.
Key resources Company is operating its business functions through 550 supermarket
stores. More than 150000 employees are working with the organization
that is biggest asset for the company (Sainsbury plc, 2016). In addition
to this company can focus on enhancing its financial revenues for
increasing its financial funds.
Key activities Supply chain and logistics is biggest operations that are performed in
the enterprise. It is vital that employees should be trained in an efficient
manner for performing their assigned task in a successful manner.
Company should also focuses on making innovations in existing
product designs so that superior quality products can be offered to
clients at a lower price.
Key partnership Sainsbury's is planning to expand business operations in new market
areas that include Asian and African countries. Company can do
partnership with existing established firm for making use of their
distributional, channel and other resources. Merger and acquisition
techniques can also be adopted for reducing the risks that are associated
with the strategies that are formed to take advantage of opportunities
that are available for the company.

Sainsbury's can gain success in new market area and gain stronger market positions by
making use of techniques that are suggested under the CANVAS business model. It is vital that
strategies formulated should be implemented in an appropriate manner (Allio, 2006). It is also
assertive that proper monitoring should be done for ensuring that all the formulated strategies are
getting implemented as per the desired manner.

REFERENCES
Books and Journals
Allio M., 2006. Practical strategy development: a wise investment for middle market businesses.
Journal of Business Strategy. 27(2) . pp.31 – 42.
Ghezzi, A., 2013. Revisiting business strategy under discontinuity. Management Decision. 51(7).
pp.1326 – 1358.
Kim, S., 2016. Strategic predisposition in communication management: Understanding
organizational propensity towards bridging strategy. Journal of Communication
Management. 20 (3). pp.232 – 254.
Parnell, A.J., 2010. Strategic clarity, business strategy and performance. Journal of Strategy and
Management. 3(4) .pp.304 – 324.
Pawliczek, A. and Rössler, M., 2016. Knowledge of Management Tools and Systems in SMEs:
Knowledge Transfer in Management. Knowledge Management Initiatives and Strategies in
Small and Medium Enterprises. 15(3). pp.180-196.
Pehrsson A., 2007. The Strategic States Model: strategies for business growth. Business Strategy
Series. 8(1). pp.58 – 63.
Posner, K., 2014. Project management pocketbook. Management Pocketbooks.
Team, F. M. E., 2013. PESTLE Analysis. Strategy Skills. Free Management E-books.
Online
Sainsbury plc. 2016.[online]. Available
through:<http://www.j-sainsbury.co.uk/about-us/business-strategy-and-objectives/great-
products/>. [Accessed on 1st November, 2016].