SWOT, PEST and Boston Matrix analysis for Sainsburys.

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SWOT Analysis

In order for Sainsbury’s to be successful they need to consider certain factors. SWOT Analysis is a good method that can be used to ensure Sainsbury’s consider all factors of the business.

SWOT stands for:





As swot analysis clearly outlines Strengths, Weaknesses Opportunities and Threats it is very clear to Sainsbury’s what areas of the business they are successful in and which areas of the business need a little more work.


As with most forms of  research and evaluation we will find that some aspects are easier to find than others, with a SWOT analysis it is much easier to highlight Internal Factors (which are the Strengths and Weaknesses of the business) than it is to highlight External Factors (which are the Opportunities and Threats to the business). Therefore other methods need to be explored to identify more factors that may affect the business.

Ansoff Matrix

Another method that may be used to identify more aspects relevant to Sainsbury’s could be Ansoff Matrix. The Ansoff Growth matrix is a tool that helps a business decide their product and market growth strategy.

There are four sections in an Ansoff Matrix:

Market Penetration – This occurs when Sainsbury’s enter an existing market with an existing product(s). Sainsbury’s would seek to achieve four main objectives when using this.

  • To maintain or increase the market share of current products – Sainsbury’s can achieve this by using a combination of pricing strategies, advertising campaigns, sales promotions and more recourses dedicated to personal selling.
  • Securing dominance of growth markets
  • Restructure a mature market by driving out competitors – To do this Sainsbury’s would need to develop a much more aggressive promotional campaign supported by a pricing strategy that would be unattractive to competitors.
  • Increasing usage by existing customers – Sainsbury’s would do this by expanding the amount of loyalty schemes they have. Encouraging existing customers to visit stores more often and buy more of products more often.

Market Development – This is where Sainsbury’s would seek to sell its existing products to new markets. There are several possible ways of approaching this strategy, some of which include:

  • New distribution channels – the more stores available by Sainsbury’s in busy market areas would increase the amount of market share Sainsbury’s has.
  • New geographical markets – Sainsbury’s opening stores in other countries could expand the market quite widely.
  • Introducing different pricing strategies that may appeal more to different customers may be a good way for Sainsbury’s to attract a wider market.
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Product Development – This is the name given to s growth strategy where businesses aim to introduce new products to existing markets. This would require Sainsbury’s to develop modified products to make them appeal to existing markets as well as thinking up totally unique products.

Diversification – This is the growth strategy where a business introduces new products to a new market. This can be a more risky strategy as it means moving into an unfamiliar market with new products. For Sainsbury’s to be able to adopt this strategy it must have a clear idea of what it wishes to gain and ...

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**** This has been a good and mostly accurate introduction to some key marketing concepts. The writer has attempted to apply the subject matter as well. It lacks depth but this is compensated by the range of subjects discussed.