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Competitive and Strategic Challenges 1
Instructions: What are the competitive challenges facing Sainsbury? The strategic challenges?
Pages: 1 page.
Subject: Business studies.
Topic: Strategic challenges of Sainsbury.
Format: Harvard References.
Sources: 4 pages.
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Competitive and Strategic Challenges 2
Competitive and Strategic Challenges
Student Name:
Instructor Name:
Institution Name:
Date:
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Competitive and Strategic Challenges 3
Competitive and Strategic Challenges
Sainsbury is one of the many supermarkets that operate in the UK. It faces several competitive
and strategic challenges in its environment. This paper looks at these challenges in detail.
Competitive Challenges
Competitive rivalry. There are other dominant players in the same environment as Sainsbury,
such as Tesco and ASDA. Tesco has a market share of 28.4%, while Sainsbury has only 16%.
Sainsbury cannot keep up with the strategies adopted by its rivals to gain market share (Wood
and MacCarthy, 2014, pg. 129). ASDA and Tesco focus on quality service delivery and desirable
pricing value and pricing. Sainsbury competitors have also increased their range of operations by
opening new stores.
The global challenge. Sainsbury has been reluctant in expanding its operations globally. This is
despite its competitors having hundreds of stores in other markets around the globe (Wrigley,
2014, pg. 101). This has made investors reluctant to invest in Sainsbury due to its failure to
expand its scope of operations.
Strategic Challenges.
Lack of brand improvement and continued innovativeness. Sainsbury has not developed
strategies and new ideas that would boost its position in the market. This has undermined its
expansion. This is despite the company being among the first entrants in the market. Due to this,
it is no longer holding the first position after being overtaken by Tesco (Sajid et al., 2015, pg.
670). In 2003, it was in third place after ASDA became the second player in the market.
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Competitive and Strategic Challenges 4
Brand switching makes it hard for Sainsbury to retain customers (Barrat, 2015, pg. 18). This is
despite the many promotions and loyalty programs.
Conclusion
To overcome these challenges, Sainsbury needs to implement strategies to make it stand out in
the market. It can expand its operations invest in brand innovation and customer satisfaction.
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Competitive and Strategic Challenges 5
References
Barratt, M 2015, Exploring supply chain relationships and information exchange in the UK
grocery supply chains: preliminary findings, Palgrave Macmillan, London.
Sajid, M, Rehman, J, Hanif, A, Sajid, F & Sajid, 2015, ‘A Successful Family Business in UK:
Case Study of Seven Days Store’, International Journal of Innovation and Applied
Studies, vol.12, no.3, pp.685-89.
Wood, S & McCarthy, D 2014, ‘The UK food retail ‘race for space’ and market saturation: A
contemporary review’, The International Review of Retail, Distribution and Consumer
Research, vol.24, no.2, pp.121-144.
Wrigley, N 2014, Store Choice, Store Location and Market Analysis, Routledge, Oxford

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Competitive and Strategic Challenges 1 Instructions: What are the competitive challenges facing Sainsbury? The strategic challenges? Pages: 1 page. Subject: Business studies. Topic: Strategic challenges of Sainsbury. Format: Harvard References. Sources: 4 pages. Competitive and Strategic Challenges 2 Competitive and Strategic Challenges Student Name: Instructor Name: Institution Name: Date: Competitive and Strategic Challenges 3 Competitive and Strategic Challenges Sainsbury is one of the many supermarkets that operate in the UK. It faces several competitive and strategic challenges in its environment. This paper looks at these challenges in detail. Competitive Challenges Competitive rivalry. There are other dominant players in the same environment as Sainsbury, such as Tesco and ASDA. Tesco has a market share of 28.4%, while Sainsbury has only 16%. Sainsbury cannot keep up with the strategies adopted by its rivals to gain market share (Wood and MacCarthy, 2014, pg. 129). ASDA and Tesco focus on quality service delivery and desirable pricing value and pricing. Sainsbury competitors have also increased their range of operations by opening new stores. The global challenge. Sainsbury has been reluctant in expanding its operations globally. This is despite its competitors having hundreds of stores in other markets around the globe (Wrigley, 2014, pg. 101). This has made investors reluctant to invest in Sainsbury due to its failure to expand its scope of operations. Strategic Challenges. Lack of brand improvement and continued innovativeness. Sainsbury has not developed strategies and new ideas that would boost its position in the market. This has undermined its expansion. This is despite the company being among the first entrants in the market. Due to this, it is no longer holding the first position after being overtaken by Tesco (Sajid et al., 2015, pg. 670). In 2003, it was in third place after ASDA became the second player in the market. Competitive and Strategic Challenges 4 Brand switching makes it hard for Sainsbury to retain customers (Barrat, 2015, pg. 18). This is despite the many promotions and loyalty programs. Conclusion To overcome these challenges, Sainsbury needs to implement strategies to make it stand out in the market. It can expand its operations invest in brand innovation and customer satisfaction. Competitive and Strategic Challenges 5 References Barratt, M 2015, Exploring supply chain relationships and information exchange in the UK grocery supply chains: preliminary findings, Palgrave Macmillan, London. Sajid, M, Rehman, J, Hanif, A, Sajid, F & Sajid, 2015, ‘A Successful Family Business in UK: Case Study of Seven Days Store’, International Journal of Innovation and Applied Studies, vol.12, no.3, pp.685-89. Wood, S & McCarthy, D 2014, ‘The UK food retail ‘race for space’ and market saturation: A contemporary review’, The International Review of Retail, Distribution and Consumer Research, vol.24, no.2, pp.121-144. Wrigley, N 2014, Store Choice, Store Location and Market Analysis, Routledge, Oxford Name: Description: ...
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