Competitors
Sainsbury’s is an oligopoly shop and the main competitors for Sainsbury’s are ASDA, TESCO and Morrison. In the supermarket shares Sainsbury’s have 16.5% stock share and ASDA having 16.4% and Morrison with 10.9% and Tesco with 28.5% stock share .
The direct competitors for Sainsbury’s are Asda, Tesco and Morrison. There is lots of indirect competitor such as corner shops as well as emerging shop like Iceland, Aldi. This is because of UK coming out of recession which meant that people don’t have money for fancy food and because of this exploit Aldi and Iceland are able to sell their food for less and by doing this they are able to attract more customers for their shop.
Sainsbury’s is a homogenous supermarket and therefor they have
Sainsbury’s goal is to reflect they commitment to meeting customers’ needs; however, they want to shop food, clothing, general merchandise and services also they vision is to be trusted retailer where people love to work and shop. They strategy plan is to know they consumers better than anyone else, be there for them whenever they need them also offering great products and services at fair prices. They colleagues make the difference; they value makes them different.
Trading fairly- these are the rules the businesses need to follow which include; the business needs to run in an open manner, competition can only happen in between companies that belong to equal parties and making sure their customers are satisfied and are feeling secured with the business’s products and the quality of the products. All businesses need to make sure that they are honest to their customers and are describing their products as it is to their customers so that they do not get angry by getting the wrong information. Sainsbury’s use many products that are organic and make many fair-trade products such as; fresh fruits. They need to make sure all their products are traded fairly and are paying their suppliers and employees fairly and make sure they are now paying them below the national minimum wage. They cannot cheat on their employee by providing them with the wrong information about the product or charge their customers extra for the product. All businesses need to follow all the rules and regulations in order to run ethically.
Strength-The main strength of Sainsbury is that they are the oldest existing supermarket chain in the UK. Hence, the brand name of Sainsbury is widely recognized and building a loyal customer base in their region. Outstanding quality and competitive price for products are unique resources that other competitors could not imitate.
To make further comment we need to investigate further by looking at industry, competitors and economy. There may be other factors causing this ratio to decrease such as a general decline gross margin profit in retail sector affecting all companies, high inflation causing less demand, increasing competition etc. We should do further investigation to make further comment.
In times of recession people tend to be very conservative when spending and the people see that ALDI offers value add to their spending by saving them money in their groceries.
Therefore it may give a more accurate picture in saying that the market structure in Tesco 's case
The UK supermarket industry is a very competitive and profitable industry. It is made up of four main players with significant share of the market, and then various smaller companies who focus on smaller niches in the market such as the bottom of the market discounters and the top of the line speciality stores. It is an interesting market and this report evaluates the attractiveness of the industry using Porter’s five forces model with an insight into how market nicher Waitrose sustains a competitive advantage. Next this report looks at how major player Sainsbury’s successfully competes against its rivals using differentiation strategies, and analyses current consumer trends and problems can effect this industry.
J Sainsbury plc (Sainsbury) is a retail chain based in the UK. Sainsbury is engaged in grocery retailing through its supermarkets and convenience stores principally in the UK. The company operates its business through three divisions, namely, Retailing, Financial Services and Property Investment. Sainsbury serves its customers through a chain of 537 supermarkets and 335 convenience stores under the brand Sainsburys, and financial services via Sainsburys Bank. Sainsbury offers around 30,000 food and non-food products and services. The company is headquartered in London, the UK J Sainsbury plc Key Recent Developments Mar 11, 2010: Sainsbury launches first bakery college in the UK Mar 08, 2010: Sainsbury to add
ASOS’s main competitors are Next, Topshop.com and River Island. As seen from the chart below these have the most percentage of market share in 2009:
The purpose of Sainsbury’s is that they are trying to make as much profit as possible, as they are competing with other supermarkets and be the number one UK’s supermarket, and this will allow them to expand on their business.
Sainsburys is currently the second largest chain of supermarkets within the UK, with a current supermarket sector share of 16.9%. Sainsbury’s was founded in 1869 and today operates in over 1,200 supermarket and convenience stores, and has over 161,000 employees. We will be looking at a number of areas internally and externally and see how they are effectively or not effectively performing.
section). This shows an increase in product purchases and an increase in market share (an increase
Owners- Sainsbury’s have shareholders in the form of stakeholders. Owners are one of the most important stakeholders. They want their business to expand and earn as much profit as they can. Owners aim to make money and raise the business they have shares in. They buy and sell their shares in order to see their share of profit increasing.
Tesco is the largest supermarket retail chain in the United Kingdom with Sainsbury being their closest rival. It is also the third largest retail chain in the world. In the beginning Tesco started off by selling basic groceries before diversifying into many different markets. In 2007 Tesco was operating in the following fields:
Tesco's has a very high competitive rivalry in many aspects of the market from some major competitors in the food retail Industry like Asda, Sainsbury, Morrison and Waitrose. They compete with one another through price, product and promotions periodically. Tesco's express' main rivals are the Sainsbury local and the Co-op one way in which they compete with Tesco's is through distribution. These businesses have stores where Tesco's has making it competitive to sustain its customers.