... firms which trade nationally. There are few firms which trade nationally the ones that do trade nationally are Tesco, Sainsbury, Asda and Safeway. These companies have tremondus purchase power and due to this they reign sumpreme on the market. The UK grocery market was valued at an estimated £103.4bn in 2001. The core business of supermarkets is food sales and expenditure on food in the UK has been growing every year for over a decade. In order to analyse the competitive environment of Sainsbury's I will use Porter five force theory model, as it is the most significant model to analyse a businesses environment. Figure 1: Source: Competitive Strategy: Techniques for Analysing Industries and Competitors. (M.E Porter) From the above diagram we can clearly see that Porter identifies five major forces that drive competition. * Competition from existing rivals * Threat of new entrants * Threat of substitutes * Bargaining power ...

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