An Analysis Of Sainsburys Supermarket

An Analysis Of Sainsburys Supermarket Founded in 1869 by John James Sainsbury along with his wife Mary Ann in London and then gradually grew to become the largest grocery retailer by 1922. Sainsbury’s is the UK’s oldest major food retailer with their first store opened in 1869. It strives to keep up with its trusted heritage of quality with best services. Past: In the early 1990’s Sainsbury’s, market leader so far, lost its position to Tesco and in 2004 it came down to no. three after Tesco and Asda. The downfall involved many reasons including changing managements, lack of innovative strategies, failing to assess the impact of loyalty cards scheme, unhealthy acquisition in Egypt and a misleading marketing strategy which failed to communicate the right message to the consumers. Present: Sainsbury’s started to fight back and be noticed after Justin King took over the management role in early 2004 and came up with a revival strategy under the name of ‘Making Sainsbury’s Grea t Again’. The process involved a no. of mergers and acquisitions of small chains in the south east England and the Midlands. The new message of ‘Try Something New Today’ went really well with the media and the consumer led by the famous celebrity chef Jamie Oliver it encouraged buyers to innovate in their kitchens and make their food interesting. Future: The supermarket industry has reached a saturation point in the UK. How long can Sainsbury’s go on opening up new stores at locations such that its stores do not start to cannibalize each other? Using the Ansoff Growth Matrix two future strategies are suggested for Sainsbury’s: Opening up of Sainsbury’s Travels and Tours – Product Development On the basis of the success potential in the travel business, Sainsbury’s might venture into the Travel and Tours business by way of Product Development as per Ansoff Growth Matrix tool for future strategy selection. Sainsbury’s has a very high probability of success as measured with the help of SWOT analysis and assessing the keys to success and the critical factors. Sainsbury’s China – Market Development Sainsbury’s might opt for the Market development strategy by offering the supermarket business to the land of opportunities China. The move will be mad after the necessary PEST analysis has been done and company’s SWT has been assessed with Chinese perspective. Sainsbury’s – Strategic Corporate Development History: 1990 to 2004 Corporations are required to add value by mans of their business. The goal is to manage and control the businesses for a long term and sustainable success. The corporate level strategy deals with the choice of the business and the growth and development related to it. Sainsbury’s enjoyed the position of the leader in the UK supermarket industry up to the early 1990’s. It had sustained its image of a name trusted with quality and se rvice. British like old names with some history behind them. The company started to lose its grip in the early nineties due to a number of reasons. There was a change in management after the longtime CEO John David Sainsbury retired. He was replaced by David Sainsbury who bought about a change in the management style. Although the times were changing and some of the people in the management thought strongly about launching loyalty card schemes and also favored introduction of non-food items in the stores, both the options were rejected by the fresh management.