Published by MBA Skool Team, Last Updated: September 25, 2021
SWOT analysis of Sainsbury's analyses the brand by its strengths, weaknesses, opportunities & threats. In Sainsbury's SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Sainsbury's to benchmark its business & performance as compared to the competitors. Sainsbury's is one of the leading brands in the lifestyle and retail sector.
The article below lists the Sainsbury's SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Sainsbury's SWOT Analysis:
For Sainsbury's, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
The strengths of Sainsbury's looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Sainsbury's :
1. Sainsbury's is one of the largest supermarket chains in UK
2. Sainsbury's has an employee strength of over 100,000 people
3. It has an extremely experienced leadership team
4. The company has an excellent branding and advertising across the UK through TVCs, print ads, online campaigns etc
5. Sainsbury's has over 1000 supermarkets and convenience stores across UK
6. Each store typically stocks around 30,000 lines of which around 20% are "own-label" goods
7. The company is listed on the London Stock Exchange & FTSE Index
8. Sainsbury's has also sponsored several events like Paralympics
9. The brand has a strong legacy in the UK since it started in 1869
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Sainsbury's SWOT Analysis:
1. Rising food prices over the world have impacted on Sainsbury's selling at higher prices.
2. Stiff competition within every segment of the retail sector affects its business
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Sainsbury's SWOT Analysis:
1. Sainsbury's can enter the markets of emerging companies through joint ventures or partnerships to explore these new markets
2. Self checkout machines could help in Sainsbury's opening stores for 24 hours which might help boost sales
3. Expanding into growing economies like Africa, Asia etc.
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Sainsbury's are as mentioned:
1. Increasing globalization, presents a challenge as well as an opportunity to Sainsbury's
2. The company has to always source the best quality & financially viable products from world over vis a vis its competitors
3. Growing penetration of ecommerce companies can affect its business
There are several brands in the market which are competing for the same set of customers. Below are the top 9 competitors of Sainsbury's:
Sainsburys is known for selling at low prices with a varieties to offer
People who shop online and offline for groceries & daily need goods
Households & individuals
Sainsburys is a provider of varied products at affordable prices
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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