Swot Analysis of Sainsbury’s Plc.

1151 WordsDec 22, 20125 Pages
Abstract Sainsbury’s is the third largest store chain inUKand 80th placed in FTSE 100 companies with market capitalisation of £ 5,457.35 million. The essay employs SWOT analysis to assess the strengths, opportunities, weaknesses and threats in relation to its strategy and operations in the UK and international markets with reference to its retail business. The strengths and opportunities of the company should be used to neutralise the weaknesses and to develop a competitive strategy against the threats that are identified as facing the organisation. Introduction Sainsbury’s is aUKbased company whose core operation is retail business in food and non-food products and services. The company’s portfolio of investments include property…show more content…
The company also operates store outlets inChina. Quality human resource The store chain understands the importance of human resource management and invests heavily in quality training of its staff. It has a staff training college that admits 10000 of its colleagues annually. As a result, the organisation was gold accredited by Investors in People due to its role in improving quality of human resources. Quality staff provide superior services to customers hence increasing customer satisfaction. Opportunities Wide market The company opened stores in China, which is a fast growing economy and has huge population.Beijing, where it opened its store outlets has huge working population to provide market for the company’s wide range of products. This is in addition to the store outlets it operates in the country. With increasing supermarket space, the company reaches potential customers. Performing economy in UK and China Food prices that have huge impact on inflation are fairly stable, ranging from 4 to 6%, a sign which indicates performance of the economy and affordability of the food commodities (Wood, 2012).ChinaandUKare second and sixth largest economies that translate to high purchasing power of customers in the respective countries. Threats Competition Competition from major companies in the business such as Tesco on price might compromise profitability and market share of the company.

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