Sainsbury PLC has been one of the topmost retail companies in the United Kingdom for a very long time now. According to the current trends of Sainsbury, it has been seen that there were different business strategies applied by the company in order to gain back the position in the market. After Tesco, Sainsbury is one of the most important and renowned retail companies that the customers trust blindly (Barnett et al. 2017). In this assignment, the business analysis of Sainsbury has been done. The strengths weaknesses opportunities and threats have also been seen according to the company. Not only that but also the challenges faced by the company in the market have also been analysed. Different strategies that are used by the company in order to get more revenue from the market have been seen as well. Scope of the discussion the strategies that can be further used for the company in order to develop their business has also been mentioned in this assignment.
Sainsbury PLC has been one of the topmost retail companies of the United Kingdom and has generated around 395 billion euros worth of retail in the year 2017 and has gained a significant position in the market. There are two other companies that are equally competitive in the market namely Tesco and Asda (Guo and Wang, 2019). Sainsbury comes in the second position but it did lose its position and came third full stop with the passage of time by applying proper strategies and implementing them in the business the company gain their position in the second place in the market. According to the trends in the retail business industry, it can be seen that the retail business industry has been fluctuating a lot. Sainsbury is one of the most renowned and trusted companies in the UK has always held its position in the topmost place in the market. Simsbury has been very consistent with its services and has prioritised its customers over anything else (Aluko and Knight, 2017). Talking about the swot analysis of the company, like any other company Sainsbury also has its strengths weaknesses opportunities, and threats.
Talking about the strengths of the any it can be said that since we have a highly qualified and skilled workforce which has helped the company to get its position in the market and retain it. Not only that but also the company has always prioritised customer satisfaction as one of the most important things. This has not only helped them to gain a significant position in the market but also has helped them in making a strong customer base (Adewuyi, 2016). Not only that but also the company has their own labelled products which make some unique and also supplies the best services and products to the customers.
There are several weaknesses of the company as well. The increasing price of the products of Sainsbury has been of concern as this has become their weakness in some aspects (Ali, 2020). The company has however gained a significant position in the UK retail market but it has not yet developed a proper business in the international market which acts as a weakness for the company.
There are several opportunities as well for the company to gain more revenue from the market such as they have been very significant that the services that they have provided to the customers. Sainsbury has been known for the excellent services that they have been provided to the customers as the 24 hours service has been one of the most important services that have helped them to gain the customer’s trust (Semeen and Islam, 2020). Coming up with new trends and coming up with new services and products has always attracted more customers to Sainsbury and has retained the customers due to the quality of the products that have been served by the company. These opportunities have helped the company in order to gain a position in the market with the passage of time.
Talking about threads the pandemic that is been prevailing in the world is one of the most important and biggest threats that the company has been facing lately. The pandemic that the world is going through right now has reconstructed the entire business structure of the world. Hence this is one of the biggest threats for the entire market of the retail sector. Globalization has been another threat that has been posted on this company (Adewuyi, 2016). Global markets and trends that have been coming in the UK have been strong competitors of the company whatsoever. Competition is a significant threat for any company whatsoever.
The company has retained its employees and customers very beautifully. Talking about employee retention leadership theory plays a significant role in the process. The employees working in Sainsbury are treated with the utmost respect and it helps the company to retain the employees as well. The leadership theory that is followed by Sainsbury is the democratic leadership theory. In this theory, the leaders are the hierarchy of the company gives an opportunity to the employees in order to share that perspective about the growth of the business and development process which might help the company in the long run (Richardson, 2017). Taking the perspectives and ideas of the employees helps the employees in feeling that they are important is well. This is one of the biggest strategies that is supplied by the leaders of the company in order to retain the employees for better performance. This not only helps the company in the long run to gain more revenue from the market but also helps the employees in their individual growth from a career perspective. In addition to that, the democratic leadership theory also helps the employees in brainstorming ideas about business development which helps them to gain an insight into how the international market works and what strategies need to be applied in order to mitigate the issues are challenges that are faced by the company. As the employees are the building blocks of any company it is important to take their feedback and opinions for the development of the company. However, it is also been consistently seen the CEOs of the company husband great leaders (Kim et al. 2021). Talking about leaders it is important for a leader to inspire people and not just dominate them. Influencing inspiring people around them is important so that the employees get an opportunity to understand what they are capable of doing. Hence the leadership theory has been one of the biggest support for the company so far.
There are several challenges that are faced by Sainsbury in the market such as competition threats of substitutes and barriers of entry in the international market. Considering the competition to be very high in the international market and the national market Sainsbury has been consistently analysing the market in coming up with strategies that would have helped them in order to retain their position in the market. Not only that but also the threats of substitute has been a consistent challenge for the company as well. Different retail companies are popping up nowadays and coming up with different services that are provided to the customers (al Habibi, 2019). Attracting the customer is not a big deal for other companies nowadays. This challenge becomes very difficult for the company to face. Another challenge that is faced by the company is the barrier to entry into the international market. Sainsbury might have gained a significant position in the UK market but it has not been able to step forward into the international market and spread its roots in the other parts of the world (Toms, 2018). Hence analysing the international market in coming up with strategies that might help them in order to set up the business in other parts of the world is equally important for the company.
Sainsbury has different angles of improvement as well. It can be recommended Sainsbury needs to be formed when it comes to the development of a new product line. Not only that but also coming up with better services would help them to retain their strong customer base. Attracting more and more customers would be e easier through advertising on social media. In today’s world, social media is one of the strongest platforms through which companies can do their advertisements hence using it would be helpful. In addition to that Sainsbury should also facilitate different discounts and services for their customers.
Conclusion
In conclusion of the discussion, it can be said that Sainsbury however has been significantly dominant in the UK market of the retail sector nevertheless it has not yet stepped foot in the international market. However, the company has significantly analysed the business over time and came up with strategies accordingly in order to mitigate the issues and challenges faced. Employee retention strategies have helped them in order to deliver skilful services to the customers. Customer retention has also been done by the company in an efficient way to provide services that might help the customers to rest their trust in the company. Therefore even after the challenges the company has striped well in the market and might as well analyse the international market now in order to step forth into the international market and spread their wishes in the other parts of the world.
References:
Adewuyi, A.W.A.W., 2016. Ratio Analysis of Tesco Plc Financial Performance between 2010 and 2014 in Comparison to Both Sainsbury and Morrisons. Open Journal of Accounting, 5(03), p.45.
al Habibi, B., 2019. HR practices of Marks & Spencer, Selfridges, Primark, and Sainsbury’s (Doctoral dissertation, University of Science & Technology).
Ali, H., 2020 What Factors Contribute to Efficient Management of The Supply Chain of Supermarket Within UK Retailers? Case Study?Sainsbury Supermarket PLC Supply Chain.
Aluko, O. and Knight, H., 2017. From corner store to superstore: a historical analysis of Sainsbury’s co-evolution. Journal of Management History.
Barnett, J.B., Cuthill, I.C. and Scott-Samuel, N.E., 2017. Distance-dependent pattern blending can camouflage salient aposematic signals. Proceedings of the Royal Society B: Biological Sciences, 284(1858), p.20170128.
Guo, L. and Wang, Z., 2019. Ratio analysis of J Sainsbury plc financial performance between 2015 and 2018 in comparison with Tesco and Morrisons. American Journal of Industrial and Business Management, 9(2), pp.325-341.
Kim, S.H., Lan, H. and Dobson, P.W., 2021. Identifying price-leadership structures in oligopoly. Oxford Economic Papers, 73(1), pp.350-370.
Richardson, S., 2017. Embodied carbon assessment and decision making under uncertainty: case studies of UK supermarket construction (Doctoral dissertation, University of Reading).
Semeen, H. and Islam, M.A., 2020. Social impact disclosure and symbolic power: evidence from UK fair trade organizations. Critical Perspectives on Accounting, p.102182.
Toms, W.M., 2018. Expressive-Level Comments and Social Media: Challenging a Model of Ethical Reflection. International Leadership Journal, 10(3).
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