Sainsburys Porters Five Forces Analysis 2017-2018
Jonathan. K. Kush is the lead business writer at 123 Writing. He holds a BA (Hons) degree in Business Administration from the University of Brighton, UK. As a Market Research Analyst by profession, Jonathan has nearly a decades experience in market research and business analysis. His passion includes studying markets and industry trends to understand their impact on company strategy, performance and ways firms can mitigate their environment to outcompete rivals.
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In 2018, Sainsburys announced a possible merger with third placed rival Asda in a move designed to increase its buying power and market share to make 'Sainsdas' the biggest supermarket chain in the UK. Using Porters Five Forces, this report examines the some of the most critical factors Sainsbury faces and how the industry structure is being changed by the emergence of the power of the buyers,suppliers,competitors and threats before an analysis of current strategies.
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Sainsburys Strategy Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Use Porters five forces model to analyse an industry on the basis of the five competitive forces.
- Analyse the UK food retailing industry and how the five forces have affected Sainsburys and rival supermarkets and the impact on industry structure, attractiveness, and profitability.
- Understand how Sainsburys has managed to defend against intense competition from Aldi, Lidl and Tesco and the strategies it uses to create 'blue oceans' that are defensible, helping it capture market share and maintain competitive advantage.
Analyse Sainsbury through the lens of Porters five forces to assess how the five forces affect Sainsbury industry and the food retailing industry in Uk.
- See also, Sainsbury Pestle & Swot Analysis 2017
1.0 INTRODUCTION
In 2018, Sainsburys announced a possible merger with third placed rival Asda in a move designed to increase its buying power and market share to make 'Sainsdas' the biggest supermarket chain in the UK. Using Porters Five Forces, this strategic management case study looks at the UK food retailing industry and how the five forces have affected Sainsburys and rival supermarkets and the impact on industry structure, attractiveness, and profitability.
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