Strategic Analysis: Sainsbury's Expansion into the Indian Market

This presentation analyzes Sainsbury's strategic expansion into the Indian market, focusing on the principles of international business. It explores geographic information relevant to the Indian market and evaluates various strategic options, with a specific emphasis on franchising as the optimal approach. The presentation details the benefits, such as brand recognition and increased buying power, alongside potential risks, including restrictive regulations and initial costs. Recommendations are provided to mitigate these risks, such as adhering to local regulations and prioritizing customer service. The conclusion emphasizes the importance of strategic planning for successful international market entry and growth. The presentation is supported by several academic references and online resources.

PRINCIPLES OF
INTERNATIONAL BUSINESS

TABLE OF CONTENTS
 INTRODUCTION
 GEOGRAPHIC INFORMATION AND STRATEGIC OPERATIONS FOR THE
BUSINESS
 BEST STRATEGIC OPTION AND ITS IMPORTANCE IN GLOBAL MARKET
 BENEFITS AND RISK TO HAVE DEVELOPMENT OF GLOBAL STRATEGY
 RECOMMENDATIONS
 CONCLUSION
 REFERENCES

INTRODUCTION
 Principles of international business used to examine about the different cultural, legal,
ethical and economic environment.
 This helps the business to have the better expansion in the global market. The current
assignment is based on Sainsbury who used to have many grocery store in UK and now
has to expand its market in India.
 The current presentation will put focus on the strategies and the best strategy for
company to operate in new global market.
 Further this presentation will outline the benefits and risk of the chosen strategy.
 At last the presentation will include recommendations to the risk management.

GEOGRAPHIC INFORMATION AND
STRATEGIC OPERATIONS FOR THE
BUSINESS
 Geographic information is the system that helps the person to know about the different
locations in the world.
 As the chosen location is India which is one of the best country in order to have better
selling of the grocery items.
 It is considered as the seventh largest country and the most popular democratic country
in the world.
 This is one of the best country in order to have expansion in such democratic country.

CONTD…
 In order to have expansion in the global market the company used to have the different
strategic options that help them to trade globally.
 The strategic options available to have expansion is as described below:
1. FRANCHISING
2. JOINT VENTURE
3. LICENSING

BEST STRATEGIC OPTION AND ITS
IMPORTANCE IN GLOBAL MARKET
 The best strategic option that Sainsbury can opt is Franchising, as this is one of the best
strategy for the company to have expansion in the new market.
 As the company has decided to have its presence in the market of India which helps
them to grow.
 Indian market used to have more selling of the grocery items die to heavy population in
the market.
 The company can open the franchise that helps them to develop its share in the new
market.

BENEFITS AND RISK TO HAVE
DEVELOPMENT OF GLOBAL
STRATEGY
 BENEFITS:
1. Brand recognition
2. Increases buying power
3. Be your own boss

CONTD…
 RISKS:
1. Restricting regulations
2. Initial cost
3. Customer Reliability

RECOMMENDATIONS
 There are some recommendations to the company in order to manage the risk in the
new market:
 It is recommended to the company that they must follow the rules and
regulations of the new country where it is having its expansion. This will help
them to have the better survivability in the Indian market.
 It is also suggested to the company that they must provide the best consumer
services that attracts the customers to buy products. This will have
development in the reliability of the customers in the market.
 Further it is also suggested to the company that they must have less initial cost
and firstly set up there business and then have better furnishing in the new
market.

CONCLUSION
 From the above presentation it is concluded about the expansion of business in the
international market.
 The above presentation has concluded about the different strategic options and the
best strategy available to the cited organization.
 Further it is also discussed the benefits and risk of adopting such strategy in the
international market and recommendations as well.
 By having expansion it will help the company to grow in the international market.

REFERENCES
 Chi, T. and et.al., 2019. Real options theory in international business. Journal of
International Business Studies. 50(4). pp.525-553.
 Sharma, P. and et.al., 2020. Managing uncertainty during a global pandemic: An
international business perspective. Journal of business research, 116, pp.188-192.
 Singh, D. and Gaur, A. S., 2021. Risk mitigation strategies in international B2B
relationships: Role of institutions and governance. Journal of Business Research. 136.
pp.1-9.
 Srivastava, S., Singh, S. and Dhir, S., 2020. Culture and International business
research: A review and research agenda. International Business Review. 29(4).
p.101709.
 Online references
 Advantages and Disadvantages of Franchising. 2022. [Online]. Available through