International Business of Lulu Group International: A Report

This report provides a comprehensive analysis of Lulu Group International's international business operations. It begins with a detailed company profile, outlining its services and market presence as a multinational conglomerate with a significant retail footprint, particularly in the Middle East and Asia. A thorough SWOT analysis evaluates the company's strengths, weaknesses, opportunities, and threats, providing a framework for strategic planning. The report then explores the international strategies employed by Lulu Group, such as franchising and strategic alliances, to facilitate expansion into various global markets. It also assesses the crucial roles of the UAE government and the World Trade Organization (WTO) in supporting Lulu Group's international ventures. Furthermore, the report suggests potential countries for future expansion, supported by PESTEL analyses, and proposes suitable market entry strategies for these regions. Overall, the report offers a detailed examination of Lulu Group's international business practices and strategic considerations for future growth.

Running head: INTERNATIONAL BUSINESS OF LULU GROUP INTERNATIONAL
International Business of Lulu Group International
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Table of Contents
Introduction................................................................................................................................2
Company Background................................................................................................................2
SWOT Analysis.........................................................................................................................3
International Strategies of Lulu Group International.................................................................4
Role of the UAE government and the WTO..............................................................................4
Expansion of Lulu Group International.....................................................................................5
Expansion strategy for Lulu Group International......................................................................6
Conclusion..................................................................................................................................6
References..................................................................................................................................8

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Introduction
International business refers to activity of the trading of the goods and the services
taking place in between the countries. It is indicative of cross border transaction in between
the individuals, business along with the government entities. It encompasses all kinds of the
commercial activities which is related to transfer of the goods, services along with the
technologies across the national boundaries. The organizations in the present age are
exploring the trade opportunities outside the framework of the domestic national borders so
that they can extend the business activities. National economies are becoming borderless in
the present age so that they can fuse within world economy. Lulu Group International refers
to the multinational conglomerate company which operates chain of the hypermarkets along
with the retail companies (Lulugroupinternational.com., 2020). It is largest retail chain within
Middle East which have 188 outlets within the framework of Gulf Cooperation Council. This
report throws light on the kind of the services that are provided by the company. This report
talks about the strength, weakness, opportunities and the threats for the company and the
international strategies which are used by the company for venturing in the various countries
across the globe. The report evaluates the contribution of UAE government along with the
WTO that have helped in offering support to Lulu Group International. This report identifies
the countries where Lulu Group International can expand the business and the entry strategies
which can be adopted by the company.
Company Background
Lulu Group International refers to the highly diversified conglomerate which have the
business entities in different strategic locations spread across the world. It was founded by the
business visionary Yusuf Ali and it has become the main contributor to the economic
standing of the Gulf region. It have the international business portfolio which ranges from the
hypermarket operations to the manufacturing and the trading of the goods. It operates within
the framework of 22 countries which are located within Middle East, Asia along with the
Europe (Hamilton & Webster, 2018). Retail division of the organization have largest
coverage pertaining to the core business and the company have the prestigious portfolio of
the shopping malls. Lulu Hypermarket is the retail chain which is growing fast within Middle
East and the Asia. It is instrumental in providing the conducive shopping experience for the
people and its competitive pricing strategy have made it popular among the people. The
production of the meat can be said to be the core business of the company and it lays

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emphasis on the aspect of the rendering of the high quality results. The company procures the
healthy animals and takes care of the fact that the meat is processed in the hygienic manner.
Lulu Group is involved in distributing the agricultural products like the nuts, pulses along
with the fruits. It also distributes the non-food items like the footwear, textiles along with the
household needs. The conglomerate have made the foray in the hospitality sector and it is the
owner of the luxury properties, convention centres along with the consulting companies.
SWOT Analysis
SWOT Analysis refers to the framework that is used for the evaluation of the competitive
position of a company. It aids a company in the development of the strategic planning that ca
assist in the growth of a company.
Strength- The strength of Lulu Group International lies in the fact that it have the presence in
various areas like retailing, importing, wholesaling and the exporting. The company with the
help of the flagship business operates the hypermarkets, department stores along with the
supermarkets that have made it popular among the people (Meyer & Peng, 2016). The retail
chains of the company serves the need for various kinds of the customers and it have the
broad assortment of the food along with the non-food products that have increased its
popularity among the people.
Weakness- The weakness of Lulu Group International resides in the fact that it lacks the
qualified along with the well trained personnel who can handle the operations of the
organization. The workers are not trained in the right manner that acts as a barrier in the path
of operations of the conglomerate. The company does not take into account the feedback of
the customer that can help the organization in bringing about the innovation of the products
and the services (Cuervo-Cazurra, 2016).
Opportunities- The opportunities lie in the path of Lulu Group International as it have
expanded the operations in the global sphere. The company have the products that have
supermarkets label that have aided the company in winning the trust of the consumers
(Cravino & Levchenko, 2017). The company have been instrumental in launching the
customer loyalty programs that have increased the credibility of the company before the
people.
Threats- The conglomerate faces the threats on account of the presence of the competitors
that can act as a barrier in the path of the survival of the company. The company have to face

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the competition from the Al- Othaim malls along with the Hyper Panda which threatens
presence of company (Jin, Almousa & Kim, 2018) Al-Othaim markets deals with various
kinds of activities related to the food wholesaling, malls along with the grocery stores. Panda
Retail company refers to the grocery retailing company of Saudi Arabia which have the
hypermarkets that can pose the competition for Lulu Group International.
International Strategies of Lulu Group International
There are various kinds of international expansion strategies which have been adopted
by Lulu Group International that have aided the company in setting up the operations in
various countries within the world. The conglomerate company takes recourse to franchising
that have worked well for the firm. The company have the franchise to various kinds of the
global brands in the food, beverages along with the toys sector that have helped the company
in getting the profitable returns from the market (Picciotto, 2017). The company have signed
the master franchise agreements with various kinds of brands like the Springfield along with
the Women’s secret that have helped the company in marketing the products in different
countries. The company have signed the strategic co-operation agreement with that of the
Chinese lifestyle brand that have enabled the process of expansion of the company. The
company have taken recourse to the strategic alliances that have helped the conglomerate
company in reaching large number of the local population within the framework of the
foreign market. The conglomerate have established the whole sale distributors that have aided
in removing the middlemen that have helped in providing benefits for Lulu Group
International (Strange & Zucchella, 2017). The firms can enter the new business territories
with the help of the strategic alliances that can help it in targeting a broad section of the
population. It have acted as a suitable form of the marketing for the company that have
increased the chances of success of the company.
Role of the UAE government and the WTO
The government of UAE along with the WTO have played a crucial role that have
aided Lulu Group International in expanding the operations in the countries. The government
of UAE supports the expansion of the companies into the new markets that helps the
companies in earning the profits. The foreign investment of UAE have played an important
role in the consolidation of the global economy (Kolk, 2016). There exists the Mohammed
Bin Rashid Innovation Fund that have helped in providing the support to the company in the
offering of the innovative ideas. The fund have helped in supporting the knowledge-based

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economy of the country and it have aided the various companies in achieving the
sustainability. The Ministry of Finance of UAE have signed the agreements with the banks
that have aided in providing necessary guarantees to that of the innovative business of Lulu
Group International within the framework of the country. It have helped Lulu Group
International in getting hold of the business loans that have greatly helped in the expansion of
the company (Masiero, Ogasavara & Risso, 2017). The World Trade Organization have
helped in cutting the cost for Lulu Group International in carrying out the business within the
framework of the international arena. It have taken care of the efficient utilisation of the
resources of the company that have helped in increasing the productivity of the employees of
the conglomerate company. It have helped in bringing down the aspects of the red tape that
have greatly helped the company in carrying on the international operations. It have played
an important role in the removal of the obstacles pertaining to the trade that have helped in
expansion of Lulu Group International.
Expansion of Lulu Group International
Lulu group International can expand the business in the countries of Australia along with the
US that can improve the prestige along with the reputation of the conglomerate company.
PESTEL Analysis is indicative of the tool that aids in the monitoring of the macro-
environmental factors which have a great effect on the performance of a company.
PESTEL Analysis of Australia
Political- Australia have the independent Western democracy that upholds the various kinds
of rights of the people. The political structure of the country are on the basis of the American
model that have provided the stability to the country.
Economic- Economy of Australia can be said to be highly developed that can work to the
benefit of Lulu Group International. The GDP of the country is around A$ 1.89 trillion that
facilitates growth of the business in the country (Oecdbetterlifeindex.org., 2020).
Social- The disposable income for the average household within Australia ( per capita) have
been found to be USD 32, 759 in a year that have provided a good standard of living for the
Australians. Lulu Group International would be able to earn the profits in the event of
entering into Australia.
Technological- Australia have adopted the new technologies at faster pace when compared to
the other countries. The scientists present in Australia have made the major breakthrough in

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the area of technology that can act as a positive force for the growth of Lulu Group
International.
Environmental- Australian government along with the territory governments administer the
cause of the environmental protection. The environmental protection legislation can be said
to be applicable for the business activities that can prove to be crucial for the expansion of
Lulu Group International (Austrade.gov.au., 2020).
Legal- Australia possess national statutory framework that helps in regulating the aspect of
the product safety so that it can cater to the needs of the consumers.
PESTEL Analysis of US
Political- The trade war taking place in between the US and the China have affected
adversely the investors living within the boundaries of the country that can bear a negative
effect for Lulu Group International (Picciotto, 2017).
Economic- United States can be said to be the largest economy in the world and the economy
of the country is growing at a phenomenal rate that can work to the benefit of Lulu Group
International (Sciencedaily.com., 2020).
Social- United States have to face the prospect of the increasing inequities along with the
outdated infrastructures that has an effect on the living standards of the people in the country.
Technological- United States can be said to be the global leader in the arena of the science
and the technology that can bring the positive results for Lulu Group International.
Environmental- The Environmental policy within United States have been derived from the
traditional laws of the trespass along with the nuisance that can prove to be relevant for Lulu
Group International.
Legal- US have the common legal system and the courts present in the country declare the
statutes along with the regulations.
Expansion strategy for Lulu Group International
Lulu Group International can expand the operations in Australia that can increase the
annual revenue which is earned by the company. Lulu Group International can enter the
country by taking recourse to the entry strategy of the franchising that can help the business
in getting access to the sufficient amount of the capital (Adeola, Boso & Adeniji, 2018). Risk

7INTERNATIONAL BUSINESS OF LULU GROUP INTERNATIONAL
of the business failure have been found to be minimized in the case of franchising as the
business is on the basis of the proven idea that helps in providing a solid foundation to a
company (Hofer & Baba, 2018). The products along with the services can be established on
the basis of the market share that can prove to be advantageous for the conglomerate
company.
Conclusion
Strength of the Lulu Group International resides in the fact that it operates in various
kinds of segments like the retailing along with the wholesaling that can aid in the expansion
of the company. Mohammed Bin Rashid Innovation Fund provides necessary support to
company that have aided it in the area of bringing about the innovations. Lulu Group
International can make the expansion in Australia which can augment annual revenue that is
earned by organization. It can make use of entry strategy of franchising which can enable the
company in the proper utilisation of the capital.

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