Analyse and 'Evaluate' the Business Strategy that J Sainsbury Ltd. has Essay

Analyse and 'Evaluate' the Business Strategy that J Sainsbury Ltd. has Pursued - Essay Example The strategic imperatives have shifted towards a priority emphasis in order to develop a superior capacity to reinvest the business model (Cravens, 2010, p.20). Sainsbury mission and goal is to become the first choice of its customers in terms of food, deliver products which are of outstanding quality and service available at a competitive cost by means of working in a simpler, faster and together. Sainsbury have made fundamental changes which have transformed the business but in the course of action the company has stayed true to its heritage. Sainsbury passion towards food at fair prices and its ethical approach have remained central for their success (J Sainsbury Plc, 2012). Figure 1: Business Strategy and Objectives (Source: J Sainsbury Plc-a, 2012) Bowman Strategic Clock The strategy clock which was coined by Cliff Bowman encouraged the mangers to consider competitive advantage with relation to cost advantage or differentiation (see appendix 1). It focuses on the price of the cu stomers and their perceived value of the goods and services. It has been argued that Sainsbury pursue a differentiation strategy while others might argue that it has adopted the low cost strategy. It could be however said that the organisation has adopted both differentiation and low cost strategy and can be termed as â€Å"stuck in the middle† (Mantle, 2012). Theories and Analysis SWOT Analysis has been performed in order to consider the internal and external factors of Sainsbury (See Appendix 3). J Sainsbury has been able to tackle the problem as it has been able to build the trust and can have faith on its customers at the worst condition. But the competition is also intense between the top four food retailers in UK and the hard discounters. It has been noted that Tesco and Asda are the top most retailers in UK and they have expanded in almost every part of the globe and this is where Sainsbury lacks and falls behind its current competitors (Mantle, 2012, p.7). Sainsbury c an try to overcome its weakness by applying its strength and overcome its threat by applying the opportunity. As per the TOWS Matrix, (Appendix 6) Sainsbury has a huge opportunity to tap the emerging nations with its diversified portfolio and with its good corporate image. The online shopping has evolved over the years and with a change in customers mind set and lifestyle, and is mostly dominated by the major food retailers (Mintel, 2011). It is the second largest food online retailer in UK and its business grew by 20% over the years (McGrath, 2012). Sainsbury is also trying to develop a presence in the drugstore category but it would result in huge risk for the company as Boots has already acquired a majority of the market share (Data monitor, 2002). To tackle the external environment PEST analysis has been conducted. Sainsbury needs to consider the external environment in order to proceed successfully and take measures of the upcoming shortfalls with respect to the external envi