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Identify how one business organization achieves it's competitive advantage - Sainburys.

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Introduction

Identify how one business organization achieves it's competitive advantage To examine how companys use competitive advantage, an individual company must first be analysed to see how they use competitive advantage (A1). I will look at the aspects of competitive advantage that relate to this single business organisation. These aspects will then be put in the order of what most relates to this business. I have decided to use "Sainsburys" as my primary case study as it is a large company that must keep the interest of customers and has to keep an advantage over companies it is in competition with. I will also be able to obtain resources and evidence from this company. Sainsburys is a popular chain of supermarkets. It is involved in both the secondary and tertiary sector (A2). It is within both sectors as it has involvement in the manufacturing of goods but also provides and service. Sainsburys achieves competitive advantage from using marketing strategies. ...read more.

Middle

Sainsburys also has an "Economy" brand. This includes most products such as frozen food, fresh food, toiletries ect. This enables people on lower incomes or wish to spend less on products to do so. The Economy range is a lower quality so allows the products to have a low cost of selling. The company weekly issues deals on products such as "Buy one get one free" as a way of enticing purchasers into the store. Even though this deal will make a loss in price, overall the company might gain as this customer may spend more in the shop at that point in time then return in the future. As Sainsburys expands, it provides more for its customers. Even down to trolleys that provide for 2 babies where as compared to five years ago this was not a common sight in supermarkets and trolleys only catered for one baby. They are trying to become more environmentally aware and so is now using biodegradable packaging on it's vegetables and fruit, the first UK retailer to do so. ...read more.

Conclusion

The price must be low enough so customers will buy it but the price must also make the company profit. Market research plays a role in this as prices need to be analysed for each product and if another company is selling at a much lower price Sainsburys can lower it's price for this particular product. Every company has to deal with employees to get maximum output from them. Sainsburys does this by an increase in pay on employees that have either been working for a long time or have been working hard, bonuses and staff discounts. This will then maintain the running in each store as more people will get through the tills quicker, shelves re-stocked and generally there would be more help. Market research is the most significant form of competitive advantage, as after all if they do not sell what is wanted by the customers, the business would not make any money. They then need to advertise the products that they sell and making the public aware of the shop and how it provides for their needs. Recognizing the public's needs give a company the most competitive advantage. ...read more.

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