Comprehensive SWOT Analysis of Sainsbury's (Business Report)

This report provides a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Sainsbury's, a major UK supermarket chain. It begins with a brief overview of Sainsbury's history, including its expansion and market positioning. The report then delves into the SWOT analysis, examining the company's strengths, such as its expansion into various store formats and innovative promotional strategies. The weaknesses include the challenges of price competition and customer loyalty in the retail sector. Opportunities are identified, like leveraging online platforms and government free trade agreements, and the threats include intense competition from rivals like Tesco and Asda, and the need for skilled workforce. Finally, the report provides recommendations for Sainsbury's, suggesting the use of digital platforms and attractive promotional offers to maintain its market share and attract new customers. The report utilizes academic references to support its analysis.

SWOT ANALYSIS
Sainsbury’s

Outline
The report will put light on the supermarket chain Sainsbury's, its history,
products, market segment and outlets. Systematic SWOT analysis which includes
strength, weakness, opportunities and threats of the supermarket chain will also be
determined and recommendations to the chain will also be highlighted.

INTRODUCTION
• Sainsbury's is the second largest
supermarket chain in UK. James with his
wife started it in 1869 as a fresh food
retailer and in 1922 they incorporated into
a private company. Introduced self-service
shop in 1956.
• After their decline between 1992 and 1998
they again relaunched and also took over
many retailers. It has processed food,
groceries items, bakery items, clothing
range, kitchenware etc.
• It has segmented its market according to
psycho graphic variables.

SWOT analysis of Sainsbury's
SWOT analysis is a technique to analyze and
identify the internal and external factors that
impacts the functioning of the organization.
Following is the SWOT analysis of
Sainsbury's:
Strengths
• Sainsbury's took right expansion moves as it
expanded from small grocery stores to convenience store to
supermarkets that cater customer's day to day needs.
• Adopts innovative promotional strategies like
ones that pitch the brand directly against the competitors.

CONT..
Opportunities
• Opening new ventures because of
government free trade agreement.
• By adopting online technology and platforms
it has able to capture new customers over the years.
Investment in these channels has add on to their sales
by knowing customer better and serving their needs
using big data analytics.
Weakness
• With advancement of online retailers the
competition has grown in this industry and in order to
attract customers Sainsbury's has to keep prices low and
cut down costs which leads to low margins.
• As there are other players in the market so
Sainsbury's has a risk as customers can switch even after
loyalty programs and heavy promotions.

CONT..
Threats
• One of the greatest threat Sainsbury's has is
intense competition in grocery and retail segment. The
main competitors are Asda, Tesco, Morrisons etc.
• Availability of skilled workforce is also a threat
to Sainsbury's
RECOMMENDATIONS
• Sainsbury's can go digital and place its products
at other platforms too and also introduce attractive offers
like buy 2 get 2 free to clear their stocks.

REFERENCES
Books and journals
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Sarsby, A., 2016. SWOT analysis. Lulu. Com.
Online
Bhasin, H., 2019. SWOT analysis of Sainsbury. [Online]. Accessed
through<https://www.marketing91.com/swot-analysis-of-sainsbury/>