Sainsbury 's Potential Of Sainsbury

1112 Words5 Pages
Sainsbury’s Potential
Investors Report

Group members’ names:
Dede, Maya, Sarah, Sibylia

21/02/2015

Contents

1. Executive Summary 2
2. Introduction 3
3. SWOT Analysis 4
4. PESTLE Analysis 5
5. Strategy 6
6. Evaluation List of Reference 7

2. Introduction [99 words]

According to the recent news, the Big Four’s market share is decreasing among the other companies. The Big Four consists of Tesco, Sainsbury 's, Morrison 's and Asda. The main reasons for their market share decrease are new competitors such as Lidl. The aim of this report is to provide a suitable and achievable strategy to increase the market share and profit of Sainsbury 's by February 2020. External and internal factors will be
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Lastly, it delivers great advertisements; For example, the last christmas’ advertisement, about the first world war, has doubled its chocolate sale.
Weaknesses [72 words]
There are two weaknesses that appeared recently. The first one is a quarter of its stores have under-used space, by which means that it has reach its potential capacity and is not productive enough. The second one is that apparently Sainsburys needs to regain its reputation again because it is suspected that Sainsburys had led the Big 4 to a collusion; Consequently, lt will lose its customers’ trust and therefore, their loyality.
Opportunities [60 words]
Two opportunities that are the most realistic to pursue are to develop a new non-core sector and to do intensive market research. Non-core sectors that can be reinvested are pharmacies and clothing. Furthermore, by doing more market research, there should be less risk of product failure and also by doing so, they could understand what the customers’ need and want.
Threats [106 words]
Refering to Porter’s Five Forces, two major threats have been identified: rivalry among existing competitors (Big 4) and threats of new entrants (Aldi and Lidl). One reason why competition among Big 4 is very intense is because supermarket industry can be catagorized as Olygopoly, which means interdepence is a critical point; An action made by one supermarket will affect all competitors. As a result,
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