This report provides a comprehensive analysis of Sainsbury's business strategy. It begins with an overview of the company's mission, vision, and objectives. The study then delves into the external macro-environment using a PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors influencing the company. An internal analysis follows, employing SWOT and VRIO frameworks to assess Sainsbury's strengths, weaknesses, opportunities, threats, and competitive advantages. Porter's Five Forces model is applied to evaluate the competitive landscape within the retail sector. Finally, the report explores theories and models relevant to strategic direction, culminating in a conclusion that synthesizes the key findings and implications for Sainsbury's future strategic decisions. The analysis highlights the interplay between internal capabilities and external forces, offering insights into Sainsbury's strategic positioning and its ability to adapt to market dynamics.