Strengths - The Company has been around for a substantial period of time, they have a string brand presence, and the word Sainsbury instantly brings a supermarket to one's mind. The branding and marketing have been key strengths of the company since they have been able to distinguish in the minds of the customers what the company stands for. They are a highly visible organisation with supermarkets across UK and in other nations as well.
The orange colour used for the Sainsbury logo is very traditional and pivotal to the campaign.Weaknesses - Although the company has a strong brand value, as a customer it is difficult to slot them in a specific category. The differentiating competitive advantages are clearly missing. The company lacks on this front since they have not been able to create a market, which helps differentiate them from other supermarkets with regards to price, quality, customer service, access to inventory or variety.Successful business strategies are those that use the capabilities of the firm to address customer needs in a way that leads to a sustainable competitive advantage; the features of competitive advantage is that it is highly desirable, hard to define or measure and may even be imaginary.
[Macmillan Hugh and Tampoe Mahen (2000), p 85 - 87] In their weak attempts to overcome the weak situation they tried bringing changes to the shelf space and inventory display, which was disastrous. It only ended up making the customers more confused while shopping.Opportunities - The organisation has the resources and capability to make improvements with the help of information technology and new applications. They also have a great opportunity to win back the trust of their target customers through better customer service. Loyalty programs are great ways of ensuring that there is repeat sales and committed customers.
The company also has stake in the financial services sector, though there might be new business opportunities to explore, one must not forget the core of the main business model.
