STRATEGIC INTERNATIONAL BUSINESS MANAGEMENT

Strategic International Business Management

Introduction2

Discussion3

Main Rationales for Global Expansion3

Sainsbury's Future Expansion into Netherland4

Internal Analysis of Sainsbury8

Entry Mode—Joint Venture10

Recommendations11

Conclusion12

References13

Strategic International Business Management

Introduction

Sainsbury was founded as a joint venture in the year 1869 when John James Sainsbury and his wife Mary Ann started a shop at 173 Drury Lane in Holborn, UK. These owners began as a vendor of fresh foodstuffs and later extended into packaged cooking items for example tea and sugar. Their business idea (tag line), as indicated on a sign outside his first store in Islington, was "Quality is great price is low". Sainsbury is a UK based foodstuff trader with concentration in economic services. Its chain of superstores has faced the challenging states of cut-throat retail industry from the time of the year 1869, which makes it the greatest food retailer in United Kingdom. With the tradition of offering clientele with healthful, harmless, clean and flavoursome foodstuff, it has certainly come a long course from a small shop from Drury lane to the contemporary head quarter in Holborn, London. At this time, it is catering around 18 million clienteles just in a week and has a marketplace share of 16 percent.

Together with its 502 superstores it has with the passage of time expanded its production to 290 Sainsbury's super stores, online-based home deliverance shopping convenience and Sainsbury's Reservoir. An online-based home deliverance shopping is offered to around 88 per cent of the UK family units. Sainsbury has noticeably acknowledged five regions to stress, in turn to keep up their dominance in the retail industry which were a) Great foodstuff at reasonable costs b) Speeding up the development of harmonizing non-foodstuff varieties c) Getting more clienteles throughout supplementary mediums d) Increasing hypermarket space e) Dynamic assets administration. In the year 1922, J Sainsbury was built-in as a private corporation, as 'J. Sainsbury Limited', when it turned out to be the leading food retailer store in the UK.

Netherlands is a division of the mainland West Europe, heavily inhabited and acknowledged internationally for its windmills and Clogs. The Dutch United Districts announced their self-government in the year 1579 from Spain. In the 17th century, the Dutch United city states attained a standing as a top maritime and industrial power. The realm of the Netherlands was created in 1815 after it resumed self-government from a 20year French working government.

Main objective of this paper is to recognize the prospective target marketplace of Sainsbury and its expansion approach in the Netherlands. Main things that will be addressed in this paper are analyzing the macro environment of the marketplace, analyzing the external and internal surroundings of the corporation, recognizing the tactical matters i.e. opportunities and threats that the corporation will experience in expanding to Netherlands, assessing diverse alternatives the corporation may take up in extension phase and at last suggesting effective tactical approaches that will make certain the global development of the corporation. The countryside that will be determined for this paper is Netherland and the entry approach that will ...