P/B/390. A PESTLE and Porters Five Forces analysis of the UK Grocery Retail Industry and SWOT analyses of Tesco Stores and J Sainsburys PLC.

This paper is divided into three main sections. First, a PESTLE analysis of the UK Grocery Retail Industry is conducted, which highlights the fundamental changes that the industry is undergoing, in response to the recent merger and acquisition activity, and particular social, economical and technological trends in the market. Next, a Porters Five Forces analysis of the industry is conducted, illustrating the high levels of competitive rivalry in the industry and where and how competitors compete. Finally, a SWOT analysis of Tesco Stores Ltd and J Sainsburys is performed. The SWOT analysis provides an internal examination of where the core strengths and weaknesses, possible opportunities and threats for the retailers are going forward. The conclusion then gives suggestions for the companies, for maximizing market share and revenue, managing the external environment, and strategies to make best of competences, resources and opportunities available.