Jiffy's Global Expansion: PESTEL Analysis of India and China Markets

This report examines the global expansion opportunities for Jiffy, a UK-based online supermarket offering fast delivery services. It analyzes the potential of the Indian and Chinese markets, considering their economic, political, and competitive environments. The report utilizes PESTEL analysis to assess external factors and identifies key internationalization drivers. It evaluates various entry modes, such as franchising, licensing, and joint ventures, and recommends India as the most suitable market for Jiffy's expansion. The report suggests a joint venture strategy combined with a cost leadership approach to maintain a strong competitive position. The study also provides an overview of the global e-commerce supermarket industry, emphasizing the importance of international trade and its impact on businesses. The report offers a comprehensive framework for Jiffy's strategic decision-making in entering a new market and achieving higher profitability through global expansion.

Business and
globalisation

Executive Summary
Global expansion is beneficial for any organization because it provides opportunity to
gain higher profitability. Jiffy is online supermarket company in UK offering fast delivery
services to consumers. China and India are two possible markets for international expansion
because of economic opportunities present in these countries. In context of present company,
various strategies such as franchising and licensing can be adopted to expand into China or India.
From analysis of political, competitive environment and internationalization divers India and
China it is analysed that the most appropriate country for expansion for Jiffy is India. Joint
venture strategy can be used by the firm for entering the market and the firm can also use cost
leadership strategy to maintain strong competitive positioning in India.

Contents
Executive Summary.........................................................................................................................1
Contents...........................................................................................................................................2
1 INTRODUCTION........................................................................................................................4
2 Jiffy Overview..............................................................................................................................4
3 The Global E-commerce Supermarket Industry...........................................................................5
4 The Importance of Global Trading...............................................................................................6
4.1 International Drivers..............................................................................................................8
5 Expansion Opportunities in India and China................................................................................9
5.1 India Overview......................................................................................................................9
5.2 China Overview...................................................................................................................10
6 External Environment PESTEL..................................................................................................10
6.1 PESTEL Analysis of India and China.................................................................................10
6.2 Entry into India or China.....................................................................................................13
7 Competitive Forces.....................................................................................................................13
8 Porter’s Generic Strategies and Ansoff Matrix..........................................................................14
9 Entry Mode and Market Selection..............................................................................................16
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19
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1 INTRODUCTION
Globalisation is process of growing independence among the world's economies and
culture due to cross border trade of goods and services. Globalization enables the local
organisation to buy and sell and their products and services apart from their national borders. It is
the most important and valuable methods which helps to start international trade. There are large
number of benefits are present for international trade which not only enjoyed by businesses but
also enjoyed by nation and their economy. It helps to improve cross border relationship with the
help of common benefits of international business.
Jiffy is an online E-commerce organisation which is taken here for global expansion and the
countries which are selected are India and China. The report helps to understand the impact and
importance of global trade. In addition to this overview of the selected company in context of
globalization is provided in this report. After this, report includes application of different
strategies which can be used to enter the specified market. The last section of report includes
findings and suggestion to selected organisation in regards to entering a new market. The market
which is selected for global expansion of Jiffy is India.
2 Jiffy Overview
Figure 1: Jiffy Logo from Website
(Source: Jiffy Grocery, 2022)
The organisation which is taken here conduct this report is Jiffy which is a London based
organisation and conduct their business locally. It is an Online supermarket which provides
facility of providing fast delivery of their products to the customers. The customers of the
company can order the present essentials and grocery from the application of organisation and
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get the ultra-fast delivery of their products. The company was founded in the year 2020 by
Vladimir Kholiaznikov and Artus Shamalov with an aim to provide quality services to the
customers. The management of company raises £23.2m since their establishment which is one of
their achievement. The concept of business is very unique and effective which becomes the
reason for attraction of investors towards the organisation (Trindade d’Ávila Magalhães, 2018).
3 The Global E-commerce Supermarket Industry
Figure 2: Global Online Grocery market
(Source: Online Grocery Market Size, Share & Trends Analysis Report By Product Type (Fresh
Produce, Breakfast & Dairy, Snacks & Beverages, Staples & Cooking Essentials), By Region,
And Segment Forecasts, 2022 - 2030)
From the above graph it is determined that the global Online grocery market is highly
valued and divided into different segments such as fresh produce, breakfast and dairy. Jiffy
offers consumers faster method of purchasing different grocery products without compromising
on quality of the products. This means that the respective company can earn high profits by
expanding to international market as it has extensive collection of grocery products deliver right
to he doorstep of the consumer.
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Figure 3: Global Online Grocery Market Size
(Source: Online Grocery Market Share, Size, Trends, Industry Analysis Report, By Product Type
(Fresh Produce, Breakfast & Dairy, Snacks & Beverages, Meat & Seafood, Staples & Cooking
Essentials, Others); By Region; Segment Forecast, 2022 - 2030)
From the above graph it is interpreted that consumers across America, Asia and even in
the middle east are growing to accept online grocery purchase. In addition to this, Online grocery
purchase is also rising across different continents. This is the right time for Jiffy to expand to
international markets and gain the benefit of rise in online grocery purchase.
4 The Importance of Global Trading
The concept of globalisation and international trade is one of most important and
revolutionary concept of the market which helps to maintain peace and effective relations
between different types of countries. There are many businesses are present in market which
reflects great heights and growth in market due to their international expansion in market. The
concept of international trade enables organisation to analyse different types of market of world
so that it becomes easy for them to provide effective returns in the market. It is required for an
organisation to have knowledge of benefits so that concept can be used in organisation in
effective manner. It is also for organisation to analyse the impacts of globalisation on business so
that selection of effective strategies can be made (Ryazanova-Clarke, 2022).
Impacts of global trade to business
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Global trade is a valuable concept for the business under which all goods and services of
organisation are sell in international market which provides them different types of opportunities.
There are large number of factors are present which is required to be analyse so that it becomes
possible to analyse all the impacts. The brief discussion related to these impacts are given below;
 The impact of international trade is positive on management of business as it helps
business to achieve different types of opportunities in market.
 International trade opens opportunities for cost reduction and organizational development
as businesses gain accesses to cheaper labour and resources for reducing cost of the
company (Sutcliffe and Glyn, 2019).
Benefits and challenges
There are number of benefits and challenges are present which is provided by concept of
international trade which enables the organisation to operate their business internationally. These
benefits motivate different types of organisation to set up their business in international markets.
The brief discussion related to the benefits of international trade on business are given below:
 There are large number of customers are present in international market due to
involvement of multiple nations. It provides huge base of customers to company which
helps to improve their revenues (Tolkach and Pratt, 2019).
 It is very helpful for the organisation to achieve their goals of growth and expansion if
their business is established in international markets because of larger number of
opportunities in comparison to local markets.
 The business relations of the organisation become improve due to international trade
because many companies are present in market.
 The financial position of the organisation is positively impacted due to international
trade. The number of investors are very high in international market in comparison to
local market which increases the investment in company (Thorpe and Figge, 2018).
There are also number of challenges are present in market which the organisation has to
face while operating their business in international market and the brief discussion related to the
same are given below:
 One of the biggest challenge which the organisation faced while conducting their
business in international market is level of competition. There are large number of
business giants are present in market which provide stiff competition. It is important for
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company to have strong financial position and effective strategic management to deal
with the competition (Tridico and Paternesi Meloni, 2018).
 The another challenge which can be faced by organisation is excess rules and regulations
in market. There are large number of rules and regulations need to satisfy by organisation
at time of conducting their business in market and becomes negative for organisation.
4.1 International Drivers
Internationalisation drivers are those factors that expresses a need for expanding firm's
market globally or internationally (Milner, 2019). These drivers cut down the cost of several
operations in business such as manufacturing or selling its products or services. Several
internationalisation drivers are given below:
 Cost drivers: Cost drivers includes the need for reducing or cutting cost of an
organisation such as Jiffy to reduce their expenses and increase their profitability. The
economic growth in China and India is internationalization driver for Jiffy. Market drivers: This includes changes in market which leads to creation of growth
opportunities at the company. China and India have prospering and growing digital
infrastructure as well as huge population ready to use better digital solutions making it
market with many opportunities for the respective firm
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 Competitive Drivers: This refers to the changes in competition resulting in upcoming
growth opportunity in the specific market. Both India and China are growing
economically and there is also presence of e-commerce retailers in the country offering
similar quality products and services. This respective company can gain strong loyal
consumer base in any of these markets by offering better products and services than
competitors. Government Drivers: Indian Government has initiated make in India campaign
supporting arrival of international firms in the country. This makes the e-commerce and
quick delivery services offered by Jiffy compatible with the Indian market.
5 Expansion Opportunities in India and China
5.1 India Overview
India is the second highest populated country in the world with growing economy and
developing infrastructure. It is important for an organisation to consider the language which is
being spoken in country where firm is planning to expand (Cohen, 2018). The solve this issue
managers of Jiffy can recruit local people in their stores at China and India to avoid language
differences as well as smooth flow of work. Each nation has its own legal laws and rules which
can restrict any organisation to expand itself in other countries (Gravina and Lanzafame, 2021).
The laws and regulations in India are different from UK. The managers of Jiffy need permissions
from government and follow legal laws to operate in these countries. To solve the issues of legal
laws managers of Jiffy can get a better understanding of laws that are prevailing in India.
Figure 4: Index of Economic Freedom: India
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(Source: India, 2022)
5.2 China Overview
China’s growth rate is reduced significantly in recent years because of COVID-19. In
addition to this, the country is also facing downturn in terms of economic stability because of
trade war between China and USA. Since China is ruled by a communist dictatorship party, the
entry of new businesses in the country, specifically from western regions is challenging. Factors
such as limitations on Hong Kong’s autonomy, the oppression of China’s Uyghur minority, and
Beijing’s cyberwarfare activities have lead to reduction of global trust in the country and created
difficulties for trading with the country.
Figure 5: Economic Freedom Index: China
(Source: China, 2022)
6 External Environment PESTEL
The markets which is selected to demonstrate this report is India and China which are
both the developing countries but there are some factors are present in these countries which
makes them favourable. These factors of the markets are described with the help of PESTLE
analyses and brief discussion related to the same are given below:
6.1 PESTEL Analysis of India and China
Factors India
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Political The political factors of India are very positive for new and international
business. The government of country has developed number of programmes
related to international investment and holding in country. The authorise of
country has increases the percentage of holding of international investors on
Indian companies. It also eases many restrictions for entry of international
country.
Economical The government of India focuses on production in India under different
schemes. Then organisations which established their manufacturing units in
country provides different types of tax relaxations. The present corporate
rates for international organisations is 15% which is negotiable as per the
different measures.
Social The population aspect of the country is their core strength. The peoples of
country are very possessive and reactive towards their beliefs or traditions.
It is required for organisations to have dynamic approach towards their
tradition.
Technological The technological background of the company plays important role for
success of any organisation in market. The people of India prefer to use
those services in their working which reduces their efforts. It becomes
positive for management of Jiffy to operate their business in same country
because whole structure of the business is depending upon technological
aspect.
Legal This section of the analyses is depending upon the impact of rules and
regulations made by government (Tushnet, 2019). There are different types
of regulations and rules are present which organisation need to satisfy for
conducting their business which becomes hectic for management
sometimes.
Environmental It is important for companies to follow such environmental rules so that it
becomes possible to operate their business without any problem.
PESTEL Analysis of China
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