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Financial Analysis of Sainsbury

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Notably, the company has fully automated depots in its inbound logistics which further depicts the extensive use of IT in its business operations. This not only enhances the operational efficacy of the company but also results in establishing it as one of the competent business units in terms of implementing and utilizing IT (Sekhar, 2009. Clark, 2004).
The operations of the company are conducted in three store formats which include the local, regular and the central domain. The company has more than 500 local stores operating in the UK that has diverse branding approach and fascia. The central formats are used for the stores of the company which is small to medium in size and operates in the center of the city. Apart from the regular products, the company also sells some specific mainline brands through its stores in the UK market (Prezi Inc, 2014. Khosrowpour, 2004).
The outbound logistics of the company includes two picking centers and it follows a warehousing model. The aim of this model is to establish dedicated picking centers in the UK with the aim to enhance the delivery of its products and services to the urban area further expanding their services to new potential customers. Notably, the company has faced immense competition from the rival supermarket chains which has forced it to develop effective strategies which can ensure the sustainability for the business. This has influenced the company to adopt the warehousing model (Prezi Inc, 2014. Khosrowpour, 2004).
In the value chain domain of marketing and sales, the company targets both the customers including the high-income group as well as the potential buyers falling under the low-income group. However, the company mainly focuses on providing high-end products and makes a mark for itself in the global market. The company also targets for bulk selling through minimizing the price of the products for a specific period of time through various schemes and offers which again provides the business with competitive edge amid the rivals up to a considerable extent (Prezi Inc, 2014. Khosrowpour, 2004).