Strategic Analysis Report: Sainsbury's Objectives and Strategies

This report provides a comprehensive strategic analysis of Sainsbury's, a major UK supermarket chain. It begins with an introduction to strategic management and outlines Sainsbury's objectives, which include reclaiming the top spot in the retail market by focusing on customer needs and health-conscious choices. A detailed SWOT analysis identifies the company's strengths (brand portfolio, skilled workforce), weaknesses (R&D, demand forecasting), opportunities (taxation policies, online platform), and threats (competitors). The report then applies Bowman's Strategy Clock to evaluate Sainsbury's strategic positioning, highlighting the hybrid strategy. It assesses the strategic direction, vision, and marketing strategies, including innovation and customer relationship management. A strategic analysis is conducted to evaluate the suitability, accessibility, and feasibility of the chosen hybrid model. The report concludes with recommendations to improve performance and market share, emphasizing the importance of strategic choices in the competitive retail environment.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
2. Organisation Objectives..........................................................................................................1
3. SWOT analysis........................................................................................................................1
4. Bowman's Strategy Clock.......................................................................................................3
5. Evaluation...............................................................................................................................5
6. Strategic Analysis....................................................................................................................6
7. Recommendation.....................................................................................................................7
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODUCTION
Strategic management process aid organisations in planning, monitoring and analysing all
the activities which are performed to meet the specific goals and objectives (Doz, 2017). In this
report organisation chosen is Sainsbury's, is a largest chain of supermarket in United Kingdom.
It is one of the successful corporation in retail market that offers a range of branded products, on
competitive price rates. This report is going to analyse the objectives of a particular organisation
and identify the major capabilities and weaknesses of respective company by using SWOT
technique. Moreover, analysing Porter's five force model in order to know is industry analysis in
same industry line. Eventually, evaluating its strategic direction, vision and mission strategy
along with suitability, accessibility and feasibility within a competitive environment. Further,
providing recommendation and conclusion in order to grow and develop as well as attain high
market share in competitive market place.
2. Organisation Objectives
Sainsbury's is one of the leading retailer store in United Kingdom it main aim and
objective is to survive and reclaim number one spot from their competitors by fulfilling all needs
of customer's. Their value is to help customer in making healthier choice for such purpose the
are working with their suppliers in order to grow with source of integrity by reducing water and
emission pollution(Hit and Duane Ireland, 2017) Working with local community and involving
employee's. For such instance they are aiming to exceed customer's expectation for fresh,
healthy, tasty foods as well as safe in their lives every day. For this assistance they are focusing
in delivering improve quality shopping experience for customer's with premium quality product
at affordable price.
3. SWOT analysis
Strength: Sainsbury's is one of the leading retailer in market of United Kingdom as they
are bring automation of activities through consistency quality of their products base on demand
of customer's. Moreover, with the high skilled workforce through successful training and
development session as they are investing in them so that their aims and objectives can be
attained (HittIreland and Hoskisson, 2012). Apart from this, they are using their outbound
logistic such as wide super market coverage so that they can take opportunity and enhance their
competitive position as their brand portfolio is extremely strong by expanding their business.
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Weaknesses: In context to Sainsbury's they are lacking behind in research and
development for such purpose they are not able to compete with the leading players in same
industry in terms of innovation. Additionally, they are not in good at demand forecasting at
higher rate which lead to miss out opportunities as compare to its competitors. Though it one of
the leading retailer store still they are facing problem in moving other products segment with
present culture where they are operating their business function. For such instance they need to
improve and invest more in technologies so that they cam focus on their aim that is enchanting
their market at current position.
Opportunities: Sainsbury's can have various opportunities with the emergence of
taxation policy that significantly impact in operating business with new opportunities for existing
players in o0rder to increase its profitability. Additionally, with the new trends into consumption
of customer's behaviours can open up new market for a respective organisation that would create
opportunities to build up revenue as well as diversity developing new product categories.
Moreover, by investing in online platform that can leverage with opportunity in knowing their
potential customer's in better way by serving their needs in an effective manner by using big
data analytics.
Threats: A respective organisation may faces problem due to existence of new rules and
regulation. Additionally, demand for seasonal is natural and unlikely this impact the profitability
of a company for longer duration of time. In retail market, the biggest threat for all retailers
including Sainsbury is the increasing rate of competitors. In this regard, TESCO, ALDI,
Morrison's and more, are considered as biggest competitor for Sainsbury that impact directly on
its sales performance and profitability.
From the above mentioned analysis, it has been evaluated that Sainsbury is one of the
biggest retailer in UK which earns over 15.8% market share (Nixon and Burns, 2012). The main
strength point of this retail is presence of more than 150,000 employees who give their support in
achievement of its major objectives i.e. to become the most trustable retailer in UK marketplace.
But due to offering the products on high price it has faced a decline of near about 8.4% in 2017
(SWOT analysis of Sainsbury. 2017). Therefore, it needs to make improvement in pricing
strategies to increase sales price.
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4. Bowman's Strategy Clock
Low price and low added value: This factor is not such effective for a business as
product is differentiated and customer's achieve very little value due to low price. Many
company adopt this strategy because price low is the only competitive method for an
organisation to compete with other suppliers.
Price: In order to become success a cost estimation is required to become successful as it
is often associated with sales. As with low price an organisation can have high volume of output
that can generate high profits. Hence, position of this strategy indicates cheaper market leaders
who have main focus on cost minimization with the motive of cheap and quick production by
using factor of economic of sale.
Hybrid: In this context, it has suggested that hybrid position involves some element of
low price with some product differentiation. As this strategy aims to persuade consumers in
adding value good they are consuming with the combination of reasonable price and acceptable
production differentiation among the existing product. Moreover, it is effective positioning
strategy as it help in adding value involved in product that are offered consistently.
Differentiation: The aim of this strategy is to offer customer's the highest level of
perceived by adding value to their product. Basically, it indicates that a high quality product
with strong brand image help an organisation to place to achieve relative price with the adopting
of different differentiation strategy. Thus, this strategy can be effective as customer's are more
sensitive towards high quality product of well known brand as well as ready to pay more
product.
Focused differentiation: Focused differentiation aims at position a product at highest
price level where customer's can buy product because high price indicates high perceived value.
It is adopted mist by luxury brands who are offering premium quality of goods and services to its
potential customer's. If an organisation adopt this strategy that a business can lead to have very
high profit margin but it be done only if a organisation are offering premium quality of goods in
order to sustain with this strategy in long term value.
Risky high margins: This strategy is mainly adopted by companies to set high price
without offerings any thing extra in their product. In this regard, offering existing products
without adding more values may increase company's value only when there is no competitor
present at marketplace in which it deals. With reference to Sainsbury's, as there is an intense
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competition present in retail market therefore, offering products on high price may impact
negatively on its sales performance.
Monopoly pricing: Monopoly is a marketplace where there is only one buyer offering it
product as per its price. If an organisation adopt this strategy in the market place than they are
free to offer their product at whatever price they want to. Moreover, this strategy is adopted my
many countries to prevent other companies in increasing prices as well as reducing the offering
of faulty product and services. In context of Sainsbury's, it can be said that monopoly strategy is
feasible for it. In order to support this statement, it can be said that if Sainbury's adopt this
strategy then it is required by them to offer some specific products which are not available for
other competitors. Thus, it will ultimately develop monopoly pricing strategy for Sainsbury's as
it offers completely different product to its customers.
Loss of market share: This strategy indicates that for selling products or services having
low value, a company needs to offer them on low price. It would help in getting some amount as
return on investment. In context with Sainsbury, as it has evaluated that due to offering products
on high price it has faced a loss of over 8.3% in 2017. Therefore, offering the old stock on low
price may help in recovering the potential debts in desired.
5. Evaluation
Strategic direction: Sainsbury's is adopting hybrid strategy as this strategy helps a
company to compete in competitive marketplace with both quality of their product as well as
price. This strategy will help a respective company to manage and build strong reputation for
selling quality of goods with best price will enable an organisation to enhance their market
coverage area as well as attain customer loyalty and gain market share. Eventually, this model
attract customer's by offering their product and services at reasonable price with high quality
with some product differentiation that are not bing able to offered by other brands. Thus, this
strategy utilizes the strength of both strategies that is product differentiation with hybrid factor in
order to add value to customer's product which they are offering (Greco and et. al., 2013).
Vision: Vision is referred as an aspirational description of an organisation gaols and
objectives that are to be achieved or accomplished in mid term or long term future. With respect
to vision of Sainsbury's, to use strength of its outbound of logistic of their business that is wider
supermarket coverage in AGRO distribution in order to take opportunity in expanding their
business in its current position (Grunig, 2013). The respective company want to become biggest
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leading retailer sore among all its competitors so by offering high quality of product at affordable
price to its customer's. Moreover, its motive is to add value to customer's product which they are
consuming in order to attain high customer's base as well loyalty of customer in competitive
market place. Thus, they want to acquire high market share by enhancing its current position
among its competitors with strategic group of action.
Market Strategy: In context to Sainsbury's its marketing strategy is to attain high market
share as well as enhance their organisation capabilities from its current position. For such
purpose they can attain acquire certain strategies which are effective in nature.
Innovation: Innovation is one of the method from which a company can increase market
share by adopting new technologies as well as providing high quality of goods and services at
affordable price by adding value to customer's (Godoy and Naidich, 2012). In order to build up
sustainability of this Sainsbury's at market place, it is required by its top management to bring
continuous based innovations in their working criteria and their existing processes for
influencing interest of customers. For instance: Sainsbury's can introduce new features in its
mobile application which will make it easier for customers to shop their products. This will
provide them better experience and enhance sale performance of Sainsbury's. Along with this, it
also improves its sustainability at market place.
Strengthening customer's relationship: For strengthening the relationship with
customers, Sainsbury provides timely information to its loyal consumers about its latest offers by
email technique. It also use social media platform to develop interaction with customers and
bring awareness among them about new products and services.
6. Strategic Analysis
Strategic analysis is a process that involves researching an organisation's business
environment in which an organisation wants to operate (Meye and et. al., 2017). Sainsbury's
have chosen hybrid strategy in achieve their aim that is attaining high market share by enhancing
its current position. With reference to Sainsbury's, suitability, accessibility and feasibility of this
strategy is determined below:
Suitability of hybrid model strategy: This strategy is help an organisation to maintain
high quality with reasonable price along with product differentiation. Which such use an
organisation will able to grow and develop in an accurate manner (Elliott and et. al., 2015).
Additionally, the word hybrid indicates combination of two basis element which are beneficial
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for an organisation to attain high market share along with sustainability for longer duration of
time.
Positive and negative impact: It is essential for an organisation to have suitability in their
business process so that they can perform their business activity for longer duration of time. It
they are able to maintain their quality of product and services they they will have positive impact
within competitive market place. Furthermore if they will not able to maintain hybrid model in
an effective manner then they will loss market place as well as it will create negative brand
image in competitive marketplace.
Accessibility of hybrid model strategy: Accessibility is defined as ability to use product
or service to such extent so that an organisation can attain its goals and objectives in an effective
manner. With this assistance, an organisation is adopting hybrid model of strategy (Keupp and
et. al., 2012). This strategy will help Sainsbury's to achieve their gaols by using this model at its
fullest level. Moreover, this model is very effective in nature it will help an organisation to to
maintaining their quality of products with affordable along with product differentiation.
Positive and negative impact: It is essential for an organisation to maintain their quality of
product and services so that they acquire accessibility for longer duration of time. If they to fail
to meet up the needs and requirement then it will have negative impact on brand image as well as
in mind set of customer's.
Feasibility of hybrid model strategy: In this regard, it is necessary for a particular
company to test the feasibility study of hybrid model in order to test weather the model is
appropriate in order to attain its gaols and objectives in an effective manner. Weather this model
will be profitable in estimating cost as well as effective in maintaining quality of their product
and services. More or less it will be effective for an organisation as this strategy is combination
of high quality with effective price along with variety of product.
Positive and negative impact: It is necessary of an organisation to maintain feasibility study so
that they can maintain their product by testing their product in an appropriate manner. If their
product care tested an approved than customer's will be attracted more towards it. It their
products of low margin they it have negative impact in competitive market place.
7. Recommendation
From the above discussion it has been observed that Sainsbury's is one of the largest
retailer store in United Kingdom. Therefore, they are panning to enhance their market share from
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its current competitive position. Apart from this some of the recommendation to a particular
organisation are determined below:
 In order to attain high market share a company need to analysis the market keenly by
observing the need and preferences of customer's as per their cultural trend.
 Moreover, the need to develop effective strategies in competing their competitors such as
creating innovation in their product and services as well as by offering premium quality
of goods and services.
 Additionally, they need to adopt proper strategy in bring competitiveness of their
company in competitive marketplace from its competitors
Thus,, the above mention are some of the recommendation that an organisation can attain
in order to grown and develop in competitive market place. From such recommendation
Sainsbury can become able to attain market-share with its current position as well as maintain
stability for longer duration of time.
CONCLUSION
From the above discussion it has been concluded that strategy management play's an
effective role It help am organisation in setting objectives analysing competitive position,
evaluating strategies in order roll out strategies across organisation. Herein, an organisation is
adopting SWOT analysis as it is an effective tool that help an organisation understand the
strength, weaknesses, opportunities and threats that an organisation is facing in operating their
business in competitive environment. Apart from this an organisation is adopting s bowman's
strategy is a model that in adopting a perfect strategy which basically represents relationship
between customer's value and price they are paying for product and services (Fisher III and
Oberholzer-Gee, 2013). Furthermore an organisation are using strategic direction that indicates
a course of action that lead to achieve gaols and objectives of an organisation in know the exact
mission and marketing strategy of their adopted their gaol and objective. Thus, in this manner on
organisation will able to attain sustainability as well as achieve their gaols and objectives in an
attractive manner.
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Online
SWOT analysis of Sainsbury. 2017. [Online] Available
Through:<https://www.howandwhat.net/swot-analysis-sainsburys/>.
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