Sainsbury Plc enjoys loyal customer base The loyalty follows the consumer focus

Sainsbury plc enjoys loyal customer base the loyalty

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Sainsbury Plc enjoys loyal customer base. The loyalty follows the consumer focus that the company puts in its operations. Nonetheless, Sainsbury adopts appealing, exciting and excellent advertisement and branding, which all add to the advantage of the company. In line with this, the company has an image differentiation that highlights its dominant brand name. Therefore, Sainsbury has approximately 30000 lines of stock in each store, with 20% of these bearing the company’s label. The dominant brand name, coupled with the large numbers of employees and management contribute to the market position that the retailer holds in the industry.
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RISK FINANCING 11 Weaknesses Despite having a vast employee base, Sainsbury encounters difficulty in acquiring personnel with the required attitude, professionalism and skill to implement the company’s corporate strategy. The rising prices in the retail food sector have tainted a negative picture of the low pricing model that characterizes the company. As such, the company levies high prices for food products, contrary to its strategic policy. The inability of the retailer to perform well in new industries exposes the weaknesses within the company. For this reason, Sainsbury Plc has been unable to invest in other regions, focusing only on UK. Inadequate capability to invest in potential markets, therefore, limits the ability of the company to realize more revenue and widen its market share to maintain a competitive advantage not only within UK but also globally (J Sainsbury plc, 2015). Opportunities The onset of globalization and international trade presents a myriad of opportunities for Sainsbury Plc. Therefore, the rapidly expanding global markets offer an opportunity for the company to venture into emerging markets such as Brazil or Saudi Arabia through partnerships or joint ventures in order to expand its operations. The introduction of self-check machines is a technological development that can enable Sainsbury to initiate 24-hour operations its stores. This could help in increasing the sales volumes and customer retention. Besides, the low interest rates present an opportunity for Sainsbury to acquire finances that could aid in investing in the new markets.
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RISK FINANCING 12 Threats In the UK, low inflation rates affect the economy, hence influencing the company’s revenue (ONS, 2015). Inflation rates subject Sainsbury Plc to lower their prices further; thereby affecting the consumers’ buying patterns and behavior. Auxiliary threats of economic slump would present the company with decreased shareholder and consumer confidence. Moreover, the industry in which Sainsbury operates is competitive and prone to crisis. Despite having reasonable market shares, other competitors within this industry are increasing their investments in a bid to capture Sainsbury’s market share.
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  • Spring '16
  • Inflation, Sainsbury, risk financing, UK., Sainsbury PLC

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