J Sainsbury Ltd is primarily a grocery retailer in the United Kingdom. It is the third largest retailer in the United Kingdom , sharing its market with Tesco, Asda and Morrison. The grocery retail industry has developed into a mature industry through its development since its inception. Through this growth, Tesco, Asda ,Morrison and Sainsbury have emerged as the market leaders. By virtue of the limited leaders in the industry, there has been a great amount on emphasis on the strategy each of these firms choose to adopt, as this could subsequently determine the amount of market share each of them could get and ultimately impact on who remains in the industry in the long term. This report will analyse and evaluate the business strategy being adopted by Sainsbury “ while identifying the unique resources and capabilities that underpin the value chain and support the strategy. It will also identify and justify the critical challenges that Sainsbury might experience in an international expansion plan”.
Porter’s generic strategy will be used to analyse and evaluate Sainsbury’s business strategy by considering(to look at) the competitive advantage Sainsbury can harness from the range of products and services it offers, and also if its operations are on a broad or narrow market. Cost leadership involves a firm being able to gain higher profit levels over its competitor by the provision of similar products to its competitor at lower costs. (Grant, 2005)While differentiation is the distinguishing of a firms products from its competitors.With regards to their strategy, Sainsbury employs both cost leadership and differentiation by maximising appeal of their customers through the reconciliation of effective differentiation with low costs.(J Sainsbury Ltd, 2012) According to Mintel(2012), there has been an increase in the use of online retailing and convenience stores by customers. Sainsbury has therefore responded to this change in consumer...
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