Business Report: Market Analysis of Tesco and Sainsbury's Performance

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Added on  2023/01/06

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This report provides a comparative analysis of two major UK supermarkets, Tesco and Sainsbury's. It examines their supply and demand dynamics, market share, and financial performance, including profit and financial statistics. The report highlights Tesco's strategies for online delivery capacity, market leadership, and financial results. It also explores Sainsbury's responses to market competition, its market share fluctuations, and its financial outcomes, including profit before and after tax. The analysis considers external factors like the impact of the pandemic and government regulations on their operations. The report concludes by referencing key academic sources used in the analysis, providing a comprehensive overview of the competitive landscape and business strategies of these two leading retailers.
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THE CONTEXT OF BUSINESS
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Table of Content
Tesco
Supply and demand
Market share
Profit and financial statistics
Sainsbury’s
Supply and demand
Market share
Profit and financial statistics
References
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TESCO
Supply and Demand:
The biggest Supermarket Tesco tends to increase its online Rose Day delivery capacity by more than
20% which is unable to meet the demand for nation by staying at their own place. In regard of this
what is required to visit the store weekly and prefer the home delivery slots. For this company also
announced the cost at the time of pandemic and the cost of Super Market which is up to 925 million
pound as staff fall sick and also replaced by new candidates. Along with this follow the norms and
regulations of government that comment wash hands more frequently self isolation and many more.
Lockdown has influence consumers in terms of moving away from the single-serve and focus more on
the value of bulk purchase.
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Market share:
Tesco is the largest grocery company and it's
main competitors are Morrison’s Sainsbury
Asda and weight loss. Tesco also competes with
the convenience of their customers and also
consider their taste and preferences. Tesco is the
largest cross Set market leader with
approximately 28.4 % market share. Tesco is
listed for the London Stock Exchange and also
has a secondary listing in the Irish Stock
Exchange.
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Profit and financial statistics:
The prominent statistics reflect the financial
year and performance of company in figures by
the presenting the comparatives from there
significant years of the financial statement.
besides this Tesco posted earlier profit as the
biggest retailer of UK and also consider various
approaches for the home stretch to turn around
its chief executive.
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Sainsbury’s
Supply and Demand:
It represent that the prices and output decisions of Sainsbury is impacted by the supply and demand
of product as there are various competitors who tends to offer same products to their customers and
also have the knowledge regarding the demands and preferences. Despite from this there are no
switching cost for the high substitute products. The significant reason depict the perfect competition
of market structure and identify the price and output based for the market mechanism of demand and
supply. Away with this production and supply of Sainsbury based on the market demand as the
market demand of Sainsbury's product is high and also tends to produce at the large scale to the
market.
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Market share:
The new data has been represented that Sainsbury has outperformed from its four week competitors
in terms of sales. Along with this sainsbury’s market share sit around 15.3% it is the marginal dip
compared to the last year which had 15.4 percent of the UK grocery market full stop further more the
leader of industry is Tesco who saw the marginal of 0.2 % sales decline for the largest data by
offering 27 % market share as compared to the last year which is around 27.3 % of the market. Along
with this change very had performed prominently besides the challenging market in terms of growing
its sales for the local convenience stores and online market as well.
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Profit and financial statistics:
At the end of financial year of 2019 sainsbury’s shopper profit of around 239 million British pounds
before tax and 219 million pounds after tax that was the Stark difference as comparison to the
financial year of 2014 and 2015 when the company operate at the loss. Considering the revenue and
pre-tax profit the operating profit is around 800 3.2 million which was achieved on the back of 22.9
to billion at the full here revenue. In regard of this company face challenges for the market at the time
of 2018 which they have only intensified the move towards 2019 and also remain steadfast for their
approach to win on the price and deliver the consistent customer experience that drive growth
towards the customer care for their approach to win on the price and deliver the consistent customer
experience that drive growth towards the customer care.
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References
Dörndorfer, J. and Seel, C., 2017. A meta model based extension of BPMN 2.0 for mobile
context sensitive business processes and applications.
Shi, X., Li, F. and Bigdeli, A.Z., 2016. An examination of NPD models in the context of
business models. Journal of Business Research, 69(7), pp.2541-2550.
Jurik, N.C., Křížková, A., Pospíšilová, M. and Cavender, G., 2019. Blending, credit,
context: Doing business, family and gender in Czech and US copreneurships. International
Small Business Journal, 37(4), pp.317-342.
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Thank You
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