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Why Is It Important To Sainsbury's Competitors?

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J Sainsbury is the partner company of Sainsbury’s, a chain of supermarkets in the United Kingdom. John James Sainsbury and his wife Many Ann Sainsbury founded it in Holborn Circus, London in 1869 during the Victoria Era (j-sainsbury.co.uk, n.d). Under the kingdom of Queen Victoria, the UK went through a period of peace and prosperity (bbc.co.uk, n.d), Therefore, with the advantage brought upon by prosperity in the country, Sainsbury grew rapidly in the market. From 1922 until 1995 Sainsbury was the largest grocery retailer in the UK until Tesco took its place and Sainsbury got brought back to the third place, right after Asda (theguardian.com, 2013). Tesco, Asda, Morrisons and Waitrose are Sainsbury’s top competitors in the market. Nowadays, …show more content…

As previously mentioned, when Sainsbury’s was first established it managed to grew rapidly and take a good position in the market. On the other hand, when one examines the past 25 years of the company’s profit it can be easily seen how profits have not always been constant and positive (appendix 1). When looking at the graph showing Sainsbury’s profit from 1988 until 2013 a general pattern appears: profits have increased. Back n 1988 the annual profit was of £ 199.700.000 and has now reached £ 756,000,000 for the past year, profits have then almost quadrupled. There are however years in which profits have decreased, such as the year of 1994 and the year of 2004. Sells have increased as well from £4,791.5 million in 1988, until it reached £25,632 million in 2013 (appendix 3). Hence it can be said that J Sainsbury has been developing progressively over the years. The progress made by J Sainsbury is fundamental for the SWOT analysis about to …show more content…

Firstly, the company is known for selling good quality products for an affordable price, but since the general food prices in the world have raised had to adapt as well; this may cause a loss in customers. Secondly, Sainsbury’s services are limited to the United Kingdom only, unlike one of its main competitors: Tesco. If in the future problems within food retailing arise or if the company may ever need greater growth sources having such a limited market can result in a weakness. Thirdly, in February of 2010 Qatar Holding LCC bought 25.9% of the company(j-sainsbury, n.d). Sainsbury is usually seen by the public as British, the fact that now a foreign company has invested in Sainsbury might cause the customers to move their loyalty towards different supermarkets. Finally, Sainsbury’s being one of the oldest supermarkets in the country it has not been keeping up to date with its management strategies in order to better adapt with the current market. It particularly had problems in inventory and supply management, these problems were the reason what the company experienced losses in 2004, as it is shown in the graph (appendix

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