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Tesco vs Sainbury

Tesco vs Sainbury - Contents Abstract 1 Introduction...

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Contents Abstract 1. Introduction - Supermarket Retail Industry P3-5 2. Strategy P6-12 2.1 Tesco 2.1.1 Business-Level Strategy 2.1.2 Corporate-Level and international Strategy 2.1.3 Strategy Development 2.2 Sainsbury's 2.2.1 Business-Level Strategy 2.2.2 Corporate-Level and international Strategy 2.2.3 Strategy Development 2.3 Evaluation and Recommendations 3. Marketing P13-20 3.1 Product 3.1.1 Tesco 3.1.2 Sainsbury's 3.2 Price 3.2.1 Tesco 3.2.2 Sainsbury's 3.3 Promotion 3.3.1 Tesco 3.3.2 Sainsbury's 3.4 Evaluation and Recommendation 4. Organizational Culture P21- 27 4.1 Organizational Culture 4.2 Recruitment 4.2.1 Tesco 4.2.2 Sainsbury's 4.3 Development & learning 4.3.1 Tesco 4.3.2 Sainsbury's 4.4 Evaluation and Recommendation 5. Conclusion P28 References P29
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Bibliography Section 1 INTRODUCTION - SUPERMARKET RETAIL INDUSTRY Generally speaking, there are four environmental forces, which are the competitive environment, the general environment, stakeholders' expectations and the internal environment, affect the supermarket retail industry. Within these forces, the main factors are as follows: *Customers As for the supermarkets, meeting the customers' needs should be put into the first place, because the nature of supermarket industry is market-orientated. Furthermore, with the development of social economics, customers have more choice of shopping methods than before. They can choose the lowest price and most convenient way to purchase. Meanwhilecustomers have become less loyal to a particular brand, they prefer wider range of products in supermarket. *Substitutes The threat from the substitutes of supermarket industry can not be ignored. There are three main substitutes exist in the supermarket retail industry. First comes to be the online store. At present, online store has been developing rapidly. Many customers prefer this shopping way to be less time-consuming and more convenient. The second one is convenience store (24 hours). Customers can buy stuffs any time they want. The third one is catalogue shops such as Argos and Index. Compared with supermarket, catalogue shops don't need big front shop and sample products, based on these cost effective, they offer even lower price to the customers. *Technology New technology has been concerned as an important factor nowadays. Supermarkets display products and relative services on their own website, which highly
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based on professional technology, also it improves working efficiency and more cost effective. Furthermore, with the development of Internet, online shopping has become the part of our life. E-commerce business provides the efficient communication media between customers and suppliers. *Suppliers The UK supermarket sector has a low rivalry, market is dominated by some main supermarkets, such as Tesco, Sainsbury, ASDA and Morrison, resulting in the power of supermarkets suppliers is low in the UK. However, as the development of other store formats, such as convenience store, catalogue shop (Argos), the suppliers' loyalty is less than before, so supermarkets retailers should pay more attention to it and develop their global strategies to get more suppliers.
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