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Supermarket and Analysis

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Supermarket and Analysis
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UK Retail Food Sector
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A Competitive and Strategic Analysis with Core Focus on Tesco and Sainsbury

2011-2012

Dissertation by:
JIGAR .C.DHABALIA
1006497
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Contents

| Preface ……………………………………………………......……. | 4 | | Acknowledgement ……………………………………..………... | 5 | | | | 1. | Research Methodology | | | | | | 1.1 Research Objectives …….………………..………………….… | 6 | | 1.2 Research Design ………...…………………………………….… | 6 | | 1.3 Research Methodology ………..…………………………….... | 7 | | | | 2. | Literature Review……………………………………………………. | 8 | | | | 3. | Introduction to Retail Food Industry | | | | | | 3.1Introduction to Retail Food Industry in UK………….………… | 10 | | 3.2Size of UK grocery market ………………………………….…… | 11 | | 3.3 Number and Sectors of grocery stores in UK ………………. | 12 | | | | 4. | Competitive Analysis of Retail Food Industry | | | | | | 4.1Competitive Analysis of Retail Food Sector in UK ………….. | 14 | | 4.2Analytical tools for competitive analysis ………………….. | 23 | | | | 4.2.1. PESTEL Analysis …………………………….…….. | 24 | | | | 4.2.2. Porters five Force Analysis …..……………..….. | 26 | | | | 4.2.3. SWOT Analysis ………………........………….….. | 28 | | | | | 4.3Assessment of top two players on the basis of no of stores | 30 | | | | 4.3.1. Tesco ……….....………………………….………. | 31 | | | | | 4.3.1.1. PESTEL Analysis ………………………… | 32 | | | | | 4.3.1.2. Porters five Force Analysis …………… | 39 | | | | | 4.3.1.3. SWOT Analysis …………….……………. | 41 | | | | 4.3.2. Sainsbury ….…….....………...…………….…….. | 46 | | | | | 4.3.2.1. PESTEL Analysis ……….………………… | 47 | | | | | 4.3.2.2. Porters five Force Analysis …………… | 51 | | | | | 4.3.2.3. SWOT Analysis ………………….………. | 54 | | | | 5. | Strategic Analysis of Retail Food Industry |



References: * Arnold, M., and Politi, J. (2007). 'Rockier route to buy-out success ', Financial Times, London, 7 November. * BBC Panorama (2010) Supermarkets: What Price Cheap Food?, 22nd Dec 2010. Available at : http://www.bbc.co.uk/blogs/panorama/2010/12/supermarkets_what_price_cheap.html [Accessed 22/8/2011] * Bream, R * Daily Mail (2010), “Tesco starts Pounds 1bn price war”, Daily Mail, Jan 18, 2010. p.7 * Datamonitor (2010), ‘Company Profile – Tesco’, Datamonitor Europe, 2010, Ref Code: 1674 * Dickinson, H. (2008). http:// www. kpmg.co.uk/industries/cm/r/ht.cfm#ii [Online]. [Accessed 20/8/2011] * Doyle, P * DunnHumby (1996), “Databases in direct marketing”, IDM lecture presented at Bristol Business School, Bristol, November 21, 1996. Available at paste link [accessed 20/08/2011] * Economist (2008) * Economist (2008). http:// www. economist.com/specialreports/displaystory.cfm?story_id=10491144 [Online]. [Accessed 12/8/2011]. * Euromonitor (2010), ‘Industry Profile – Food retailing’, Euromonitor International, 2010 * Herald Scotland (2005), ‘Baby boom gone bust, Policies needed to tackle worryingly low birthrate’, Herald Scotland, November 11, 2005 * HM Treasury, (2008) ), “Evidence on the UK Economic Cycle”, November 2008. Available at http://news.bbc.co.uk/1/shared/bsp/hi/pdfs/24_11_08_pbr_economiccycle.pdf [accessed 18/08/2011] * HM Treasury (2008) * Jim Downey and Technical Information Service (Oct 2007). Strategic Analysis tools. * Keynote (2010), Keynote Report on Food Industry Market Review, March 2010. Available at http://www.keynote.co.uk/market-intelligence/view/product/2360/food-industry [accessed 23/08/2011] * Killgren, L * King, I. (2009), ‘Tesco shows its claws’, Sun, Jan 18, 2009. p.42 * Mintel (2009), Food Retail Industry – Including Online, Mintel Research * National Minimum Wage (2009), ‘Low Pay Commission Report 2009’, National Minimum Wage. Available at http://www.lowpay.gov.uk/lowpay/report/pdf/7997-BERR-Low%20Pay%20Commission-WEB.pdf [accessed 22/08/2011] * O 'Doherty, J * Office for National Statistics (2009), ‘Internet Access Households and Individuals’, Office for National Statistics, August 29, 2009. Available at http://www.statistics.gov.uk/pdfdir/iahi0809.pdf [accessed 23/08/2011] * Porter, M * Poulter, S. (2009), ‘Debt problems piling up for younger generation’, Daily Mail, Nov 14, 2009 * Rigby, E * Rigby, E, and Killgren, L. (2008). 'Sainsbury buys back sites to fuel non-food growth ', Financial Times, London, 27 March. * Rigby, E., and Braithwaite, T. (2008). 'Sainsbury offers relief for retailers ', Financial Times, London, 10 January. * Tesco (2009), ‘Corporate Responsibility Report’, Tesco. Available at http://www.investis.com/plc/cr09/crr09.pdf [accessed 24/08/2011] * Tesco (2010), ‘Annual Report and Review 2010’, Tesco * Wiggins, J., and Urry, M. (2007). 'Cadbury benefits from gorilla tactics ', Financial Times, London, 11 December. * Wood, D. (2009) ‘Are We Cooked Yet?’, Treasury & Risk Management, 15(6), June 2009, p.1424 * Yuthas, K Books Referred * Robert A & Vijay G (2008) 12th Edition * Phillip K & Kevin K (2007) 12th Edition.Marketing Management.Pearson Prentice hall. * Ireland, Hoskisson& Hitt. (2008). Strategic Management.Cengage Learning. * Ramaswamy V & Namakumari S, (2009) 4th Edition , Marketing Management, Macmillan Publishers India * Pride W, 1st edition, Marketing :Planning, Implementation and control, Cengage Learning. * Sullivan M and Adcock D,(2002) 1st Edition, Retail Marketing, Cengage Learning. * UK Grocery Retailing (2010, August), The food and Grocery Experts retrieved from : http://www.igd.com/index.asp?id=1&fid=1&sid=7&tid=26&cid=94 * Food Retail in UK (2010, June) retrieved from www.datamonitor.com * Competitive analysis of the Retail sector in UK (2003), prepared by Professors Steve Burt and Leigh Spark and submitted to Department of trade and Industry retrieved from : [ 3 ]. Competitive analysis of the Retail sector in UK (2003), prepared by Professors Steve Burt and Leigh Spark and submitted to Department of trade and Industry retrieved from :http://www.bis.gov.uk/files/file11029.pdf [ 4 ] [ 5 ]. [Porter’s Five Forces Model, Available at: www.businessballs.com/portersfiveforcesofcompetition.htm (Accessed 12/8/2011)]

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