Supermarket retailing---- Tesco Vs Sainsbury's

Essay by nickqian933University, Master'sB-, August 2006

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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


Section 1


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:


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.


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...