Strategic Management: Comprehensive SWOT Analysis of Sainsbury's

This report presents a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Sainsbury's supermarket. The introduction outlines the report's focus on the internal and external factors influencing Sainsbury's. The main body provides a detailed breakdown of each SWOT category. Strengths include their expansion and ability to adapt to customer needs, while weaknesses involve limited margins and customer loyalty. Opportunities encompass new area development and technology adoption, and threats arise from increasing competition and a dynamic market environment. The analysis highlights that Sainsbury's deals in a wide variety of products but faces margin pressures and competition. It emphasizes the company's innovative promotion techniques, rural market development, and adoption of new technologies. The report also considers globalization's impact and the challenges of a dynamic market. The conclusion summarizes the key findings and references relevant academic sources.

SWOT ANALYSIS OF
SAINSBURYS.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................1

INTRODUCTION
MAIN BODY
Strength Right expansion move: Move to
supermarket from the store which help
the customer to meet their day to day
need, which is now top supermarket in
UK. Dealing in all products: Sainsburry is
dealing in all type of product hence
offers to all the customer which not
only focus on basic need product but
also include high specialist product for
the higher income people.
 Promotion techniques: The promotion
strategies are highly innovative and
which attract the customer by various
offers.
Weakness
 Loyal customer: Customer are very
dynamic and can easily shift from one
brand to another which is still facing by
the sainsburry (FATRICIA, 2016).
 Limited Margins: As to attract6 the
customer and to stick with the loyal
customer sainsburry have to keep their
margin low compare to their
competitors.
 Variation in Cost: The main factor to
affect the business is the cost of the
business which increases due to
technology and by their competitor.
Opportunities New area of development: Sainsbury
have developing in the rural areas by
opening stores which help the customer
not to travel to city for the purchasing.
 Adopting new technology: Self check
out machine help the sainsburry to
open the store 24 hours which increase
the sales of the company (Pandya,
Arenyeka-Diamond, 2002). Expansion: Expanding in the
Threat
 Increasing Competition: Due to flexible
nature market anyone can start this
business which affect the sainsbury
directly due to prices and other
facilities that are offering by the
competitor.
 Globalization: Due to increasing in
globalization create a challenge and
opportunities for the sainsbury to
maintain the market customer where

developing countries like Africa and
Asia increases the brand values and
goodwill and capture major of the
market.
outside brands also involving in the
same. The main competitors are ASDA,
Morrison, Aldi etc.
 Dynamic environment: The market
changes very fast which affect the
smooth working of sainsburry due to
change in technology and change in
market etc.
Explanation:
The above table shows the SWOT analysis of sainsburry which allocate the Strength and
Weakness, opportunities and threat which are internal framework of the company. Strength and
weakness of Sainsbury shows that company is converting their market into super market store
which offer the variety of product for all income level but the customers are not loyal toward the
brand and can easily shift to another. They deal in all type of products which include food to
electronics and groceries to specialist exclusive products for all the customers but the margins
are low because of competition. Their promotions techniques are very innovating which help
them to maintain in the market but cause increase in cost which affect the profits of sainsburry.
There opportunities and threats are that sainsburry is developing the rural market which increase
the sales but also effect the competitor already in the local market. Adoption of new technology
help the company to decrease the cost of company but globalization affect the working of
company in different areas (Ormerod, 1995). Sainsbury expands their store to other countries
like Africa and Asia but due to dynamic environment cause difficulties in the market to establish.
CONCLUSION

REFERENCES
Books and journals
FATRICIA, R.S., 2016. SWOT ANALYSIS OF SAINSBURY’S SUPERMARKET. Jurnal
Manajemen Terapan dan Keuangan. 5(1).
Pandya, K.V. and Arenyeka-Diamond, A.O., 2002. Towards a model of e-tailing: a SWOT
analysis of electronic supermarkets. International Journal of Services Technology and
Management. 3(1). pp.96-110.
Ormerod, R., 1995. Putting soft OR methods to work: information systems strategy development
at Sainsbury's. Journal of the Operational Research Society. 46(3). pp.277-293.
Online
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