University of Suffolk: Sainsbury's International Business Strategy

This report provides an overview of J Sainsbury's international business strategy, focusing on its rationale for international expansion and a recommendation for entering the Chinese market. It employs relevant academic models for international market selection and entry tactics, addressing typical challenges the company may face. The report justifies the choice of China, considering governmental policies, entrepreneurial environment, and skilled talent availability. It also discusses cultural and language barriers. The implementation approach for internationalization targets adults aged 25-45, focusing on their purchasing behavior. Ansoff Matrix and stages of international expansion are applied to analyze market selection and entry strategies. Desklib provides students with access to a wide range of study resources, including solved assignments and past papers, to support their academic endeavors.

Individual Report

EXECUTIVE SUMMARY
It has been analysed from the report that there will define an overview of chosen
company and rationale for going international. It has been also explaining the discussion which
nation would recommend firm to enter and relevant academic model related to international
market selection and entry tactics as well. Furthermore, the study has been justifying the typical
challenges that will be faced as company expands globally. Lastly, it has been clarifying
implementation of approach for internationalization, procedure for particular target market.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................5
ANALYSIS AND DISCUSSION...................................................................................................9
CONCLUSION .............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
International business term is defined as process of trading products and services and
conducting the same practice from national to international level (Guercini and Milanesi, 2020).
It also includes cross border transaction of items and services that in turn provide a lot of benefits
to organizations or entities, who are conducting this practice in appropriate manner. The current
assignment will be based on J Sainsbury, which falls under category of top 10 supermarkets in
the UK.
The report will define an overview of chosen company and rationale for going
international. It will also explain the discussion which nation would recommend firm to enter
and relevant academic model related to international market selection and entry tactics as well.
Furthermore, the study will justify the typical challenges that will be faced as company expands
globally. Lastly, it will clarify implementation of approach for internationalization, procedure for
particular target market.
Overview of the organization
J Sainsbury is the organization which is dealing in the share of supermarket sector which
helps in describing about the business which Sainsbury is dealing in and these addresses that
Sainsbury is dealing in the chain of supermarkets by providing the customers the products and
services at large scale. The organization is divided into three divisions which are – Sainsbury's
supermarkets, Sainsbury Bank and Argos.
Rationale
The main reason for selecting this organization is that it is planning to expand its business
and is going internationally with the other countries. The organization is planning to increase the
sales and production of the products and services so that the reputation and brand name is
increased and is having value within the other international markets at large scale. The
organization is planning to expand on the basis of grabbing the attention and increasing the
popularity of the products in the market at large scale.

LITERATURE REVIEW
According to Spencer-Oatey and Dauber, (2019), internationalization is the process of
planning and implementing products and services so it can be easily adopted by the local
languages and cultures. Designing of the products and services in such manner that they are
accepted and are concerned by the other countries in appropriate manner. It is basically the
process which is analysed by companies and this helps in ensuring the concerns which are
analysed within the process of how the internationalization is done.
Country to expand the business
As per Ing, (2021), the business of the organization is expanding in China as there are
many advantages which will help in providing the business new roots and will help the business
to grow and expand on some easy and flexible terms at large scale. By expanding the business in
China will help in providing the aspects as to how effectively and in appropriate manner the
scales of business and the organization is keeping up with the concern of expansion. There are
some advantages as to why the organization should expand the business in China and these
advantages are – there are favourable governmental policies which helps in knowing that China
is favourable and there are easy and flexible ways through which the company will be able to
provide products and services to the customers in China. This will expand the market reach
which will help in creating value for the business at large scale.
As stated by Tien, Phu and Chi, (2019), The next major advantage which is being carried
out by expanding the business in China is there is providence of facilitative entrepreneurial
environment and this helps in creating value for which there are many opportunities which are
provided to the organization as proper growth and developmental aspects are drawn benefiting
the organization at large scale. It is also very advantageous for the organization to get benefits
from China which is being analysed and considered as important and this is – abundance of
skilled talents which helps in knowing and creating value for the business which is being
expanded in China. There is availability of skilled talents which helps in knowing that there is
team of talented individuals which is providing the scale of positive work outcomes and will
create great influence on the other team members.
Cuervo-Cazurra and et.al., (2018), states that there will be many growth opportunities
which will keep the aspect of how effectively the business will be able to seek major

developments at large scale. China will be able to provide major aspects and advantages which
will help in creating value of how the businesses are formed in appropriate manner. This will
help in knowing and addressing concerns related to business to be expanded in China as this will
help in improving the business and will create value for the business by producing the products
and services at large scale. There is more stability when as China is the country which is stable in
analysing and providing the concerns related to growth and development within the business. It
is very important to have stability within the business so that Sainsbury is able to provide the
products and services at large scale. This will helps in gaining more customers within the market
of China.
Application of theories and models to the process of international market selection and
entry strategies
Magnani, Zucchella and Floriani, (2018), states that the international market selection
and entry strategies for the business are being analysed by considering the concerns which are
related to growth and development and improvement in the business at large scale through
expansion. The process of international market selection and entry strategies are framed and are
constituting the process by following these steps of concerns and these are – Identifying foreign
markets, proper selection of international markets, steps for selection of foreign markets, criteria
for selecting target countries. This is the process of international market selection. This helps in
innovating the new product in the market which is being analysed at large scale. The process of
entry strategies can be done with the help of – licencing, franchising, partnering, direct exporting
etc.
As stated by Watson, Weaven and et.al., (2018), The model which is being used for the
process of international market selection and entry strategies is described with the help of Ansoff
Matrix described as -
Ansoff Matrix – There are four quadrants which are analysed and are described as -
Marketing Penetration - The sales of the products are being expanded which is done in the
existing market as it also helps in understanding and creating value of the products in the market
at large scale.

Product Development - Sainsbury is expanding its products and services in the market and this
is creating value for the company's growth and processes of organizational development in
China. There is development of the products as the company is expanding in China at large scale.
Market Development – The products are placed in entirely new market which is ensuring the
concerns related to the development of the products of Sainsbury in China in effective and
appropriate manner. China is high for the aspect of developed market and this helps in analysing
the concerns related to Sainsbury creating value for the products and services to be made
available to the customers at large scale.
Diversification – The products when entering into the new market which is China is addressing
to concerns at large scale and this helps in opening the ways which are at risk for the company.
Diversification is as such a positive aspect but when entering into new market there are ways
which hinders and slower down the growth and development of the business.
As denoted by Clark, Li and Shepherd, (2018), There are three stages of theory which are
beneficial for analysing the process of expansion done internationally and this is framed as -
Stage 1 – Cost and barriers to initial international expansion
Stage 2 – Benefits of international expansion
Stage 3 – International expansion beyond an optimal threshold
These three stages of theory are being addressed and are considered as important and this helps
in solving the aspects which are considerable for growth and development. The expansion is
China will be beneficial for the businesses to be considered to grow and develop more which
helps in contributing and analysing the concerns which are related to how effectively and in
appropriate manner China will be able to support the business of Sainsbury and this will help in
providing the scale to which all major concerns are being addressed at large scale.
Discussing typical barriers that will be faced as firm expands internationally
According to Mendy and Rahman, (2019), While entering into chosen nation and expand
venture within that market, firm will face different types of challenges or barriers that put direct
impact on its performance and productivity as well as profits.
Cultural barrier-
According to this term, organization while entering into Chinese market, face barrier
because of cultural differences between both nations including home town and international

(Mendy and Rahman, 2019). It may lead to decrease the effectiveness of its operations, either
functional or non-functional, for short time period, which is not suitable for business planning
and growth in the retail industry. It is not that easy for firm to deal with current challenge easily,
as it needed a lot of resources and efforts that consumes time and need further investment. Due to
difference between both nations culture, firm may face issue to retain customers and work with
skilled people.
Language barrier-
Another challenge that Sainsbury will face during the process of global expansion in the
China is current one. According to this issue, firm face challenge to understand the need and
requirement for customers as well as workers, which lead to create more issues in the workplace.
A language become the main source of information sharing and understanding, especially in case
of organizations (Xu and et.al., 2019). It is important for chosen supermarket to deal with current
factor that impact negatively upon its growth in the future when it enters into Chinese market, for
purpose of expanding venture and generating revenue throughout the same. When people are
unable to understand the language of each other because of belonging to different nations, they
will never work together in productive and beneficial ways that impact positively upon chosen
brand as well as venture success.
Relevant implementation approach for the internationalization process for the specified
target market
According to Gammeltoft and Cuervo-Cazurra, (2021), internationalization is the process
as to how effectively and in appropriate manner the market is being captured which is China as
there are aspects of how effectively the major concerns are related to expansion in the market at
large scale. The process of internationalization helps in depicting the concerns as to how
effectively the market is being captured which is China. The market implementation approach
for internationalization process is done by targeting the customers in the market at large scale.
The target customers are of age group – 25 – 45. The category of target customers are – adults.
They are more concerned and are engaged in buying the products and services at large scale.
This helps in valuing the concerns which are related to targeting the market and its customers in
China so that there are aspects of growth and development within the market and the expansion
becomes easy and flexible within the market at large scale.

Hervé, Schmitt and Baldegger, (2020), states that there are different approaches to
international market but the major approaches are mentioned and are valuable in different
manner and these are – standardization and adaptation, global integration perspective,
coordination perspective. These are some major perspectives which are signified and are
addressed as important with consideration of individuals concerned within the expansion process
and going international at large scale. The major benefits which Sainsbury has is that after the
expansion of the business in China there will be popularity of products and services in other
countries as well as the products and services of Sainsbury will be idealized within the company
and in other countries at large scale. The internationalization has benefited the company and due
to this there are aspects which are concerned at large scale which are being concerned and will
help in developing the business perspectives at large scale and in significant manner.
As per Zahoor and Al-Tabbaa, (2021), there are some other ways which are being
considered and are applicable in knowing that how the strategies are framed so that the
expansion of market in China is beneficial . Also because there are less governmental policies
which idealizes the concerns related to how the market is being developed and who are the target
customers. Sainsbury is focusing to expand the market in China which will help the company in
knowing how effectively the customers are interested in buying the products and services so that
the delivery of products is done accordingly at large scale. Therefore, there are aspects which are
concerned and are analysed for addressing the aspects of how effectively the products and
services are made applicable for delivering the products and making it available for the
customers to reach the products and promote those products in the market at large scale in
appropriate manner possible.
ANALYSIS AND DISCUSSION
It has been analysed from the above literature review that international market expansion
will be profitable in knowing and concerning the target market of China. It has been also
analysed from the above literature review that Sainsbury as planning to expand its market in
China, it is making the concerns regarding new ideas which are profitable and are helping the
business to analyse and create value at large scale. There are concerns which are related to how
effectively and in appropriate manner the company is expanding its business and is focusing to

gain maximum from the customers as they will be buying the products and services at large scale
(Hamidi and Jahanshahifard, 2018).
It has been analysed and discussed from the above literature review that Sainsbury is
planing and is focusing on having major changes which are being analysed at large scale. Apart
from the perspective of growth and development, there are some barriers and issues which may
arise while expanding internationally at large scale. The barriers which may be faced are –
cultural barrier and language barrier (He, Marginson and Dai, 2019). These are some major
barriers which were analysed and identified while drawing the analysis and discussions
performed and done in reference to having prior analysis and expansion of the business
internationally and at large scale. It has been also analysed that due to expansion there will be
profitability gained and this helps in knowing the concerns regarding the scale of expansion and
the target customers. There are aspects which are helping to analyse and create value of the
organization as there are ways which are helping to depict the proper framework at large scale.
It has been discussed from the above literature review that process of international market
selection is being analysed by valuing the customers at large scale and this is analysed by
understanding the concerns related to effective growth and development at large scale. There are
concerns regarding the analysis of the market and expansion within China and its market at large
scale. It has been analysed from the above analysis that there are concerns which are helping and
aiding to initiate the concerns which are applicable at large scale (He, Marginson and Dai, 2019).
This helps in addressing to terms and conditions which are helping Sainsbury to develop the
market at large scale. It has been analysed from the above review that there are concerns which
are signified for addressing the aspects which are related to growth and development at large
scale. It has been maintained by the factors which are helping to contribute to the growth and
development at large scale. It has been also analysed and discussed from the above review that
the internationalization will be beneficial for the company Sainsbury and this will help in
depicting the aspects of growth and diversification of the business in significant manner and at
large scale.

CONCLUSION
On the basis of above analysis, it has been concluded that by developing effective
strategies and plans, organization has expanded its venture, at international level. It has gained
competitive advantages by conducting this and other practices as well, that has been suggested in
above study. Firm and its management has taken pleasure of increasing profitability and
productivity by selecting the best and appropriate market route as well as approaches that has
helped to overcome the adverse impact of each barrier. Furthermore, from above discussion, it
has been summarized that appropriate implementation of approach, enable firm to move ahead
toward further success in the competitive business world.