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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.

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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