A Critical Comparison of Tesco and Sainsbury

The business I have chosen for this investigation is ASDA superstore. This is a large chain of supermarkets throughout Britain which retails clothes, merchandise, food, and electronics etc. in this part of my course work I will briefly explain the aims and objectives of ASDA I will also explain the external factors which affect the aims and objectives of the business however I will first be talking about a brief history of ASDA.

First we need to explore what the two businesses actually do in terms of how they make their money. We will start with Tesco; Tesco are an enormous business with their core activity being retail. However with the popularity of the brand name and their positive image they have been able to differentiate and branch out into different markets, some of these peripheral activities include: ‘Tesco Mobile (Tesco’s mobile network) and more recently Tesco Bank

In the following report we will be going over our analysis and findings during the process of our study of Sainsbury’s internal and external environment.

Tesco's has recently had to make many changes in their staff and have had to change the management structure to be able to pay every manager fairly and pay the wages for their general employees. These effects were taken place due to a major profit change and an unstable financial system. Another effect that has been changed is the Tesco pension scheme back in 2012. The Tesco pension scheme had changed due to financial problems however this would mean employees who have a pension scheme with Tesco will have to work longer if they were in their early 60's . This became a challenge for Tesco's as they couldn't afford to pay out on pension schemes at that precise moment.

Sainsbury’s have a long term goal to deliver their products and keep their customers happy. One of their objectives is to make life easier for their customers by offering products with good quality and service with a fair price. This also makes the customers happy and makes them want to shop

To achieve this report will be looked at in four main areas. Firstly, we will use financial ratios obtained from annual reports of 2008 and 2009 to analysis and appraise Morrison’s financial performance. This would be followed by a comparative analysis with Tesco, for the same period. In addition, a trend analysis will be done to show the pattern of Morrison’s financial performance over the years 2006 to 2009. Furthermore, a comparison will be made with industry average

Product offerings by these contenders are similar as Tesco’s to a huge degree. This procedure helps Tesco to ensure its commercial center by expanding competition. A large portion of the contenders of the Tesco have an equivalent or a bigger market share in the store business. By industry investigators, Tesco PLC has a twenty nine per cent of shares the grocery store industry.

Tesco is very fortunate as there are few other large supermarket companies. This means that the food retail market is quite disciplined as the supermarkets have a set approach to price setting. Discipline stops them destroying each other in a profit war.

Tesco was feeling the pressure because they saw a fall in profit since 2008 and were worried that their customers would not return. However as time moved on the economy started to pick up again in 2009. Customers started to spend more and were more comfortable about their current financial situation. However Tesco realised that their customers were not purchasing goods of high price, meaning that customers were likely to purchase readymade meals and organic products. The demand for a product depends on the economic factors such as interest, inflation and local employment levels. Tesco doesn’t have control on the economic factors; however these do have an effect on the business.

Sainsbury’s have to ensure they make changes regarding customer needs as quickly as possible. This is important because if Sainsbury’s don’t act on customers’ needs they will possibly decline and lose their current market position because customers will go to its competitors such as Asda or Morrison’s etc. This shows that Sainsbury’s have to make decisions as soon as possible in order to maintain their position in the market and to be better than its competitors through improvement. This will also contribute to Sainsbury’s keeping a good reputation which will also help to attract new customers.

As I have mentioned before, this research paper is being taken exclusively with the aim to evaluate the Tesco’s performance in both financial and business terms over a three years period. Since the financials will be compared with its three year

In this report I will be providing the UK’s largest supermarket, Tesco with advice on their performance. I have chosen to use two types of analytical models to review the company; I will be looking at the organisational structure of Tesco, as well as analysing their business and competitive strategy.

The UK supermarket industry resembles an oligopolistic industry, with several characteristics. Oligopolistic markets tend to be characterised by high concentration ratios, barriers to entry and…Since the turn of the century, the industry has been scrutinised by both the Office of Fair Trading and has been referred to the Competition Commission on two occasions. (Seely, 2012)

Aim of this easy focus on Tesco marketing operation and how they control their domestic and international market. The information that use in this report is secondary data and also different techniques, analysis such as PESTEL analysis, SWOT analysis, Marketing mix analysis, market segmentation, targeting analysis etc are used to discover Tescos marketing position in national and international place.

This paper critically analyses the past and the current market trend, operations, and marketing strategies of Sainsbury’s Company. Different models of analysis were employed to clearly understand the current and previous state of Sainsbury’s. Some of these models include SWOT analysis, PEST analysis, CORE analysis, Porter’s Five Forces model, Key Success Factors, and Ansoff’s Matrix These models help in understanding all aspects that play a role for the success and the failures of the company that include its strengths, weakness, opportunities, threats, and several factors that bolster of hinders the success of the company. I also looked at deep analysis of the success of introducing “Dark