Internal And External Expansion Of Sainsburys
Section A
A1.
A) Retailing is the business where an organization directly sells its products and services to an end consumer and this is for his personal use. By definition whenever an organization is it a manufacturing or a whole seller sells directly to the end consumer it is actually operating in the Retail space.
B) Retail expansion is when the retailer reach out to new market segments or completely changes his customer base. Retail business can be expanded in two ways. They are internal expansion and external expansion. Internal expansion takes place inside the organization or the company. And external expansion deals with the outside world of the company or organization. Sainsbury also have some internal and external expansion. Internal expansion of company was as mentioned in the case study a product line expansion. Sainsbury is introducing new product line which is coffee shop to the business. They did this internal expansion in order to challenge the UKs 3large retail chains who are Morrison’s, asda and Tesco. They also expanded their business externally. A horizontal expansion which means one firm merging with another firm in same industry was done by Sainsbury. In order to decrease the competitions from the discounter lidl and aldi, Sainsbury did a deal with Danish retailer Netto. In addition Sainsbury has bought Daisy Fresh which is a popular giant super market in Compton and the store will be reopened in the name of Sainsbury’s local. And the store will
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