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Swot Analysis Of Sainsbury

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Sainsbury is UK based third largest chain store company that operates its business operation since 1869. This company was founded by john James Sainsbury at London. This company is third in terms of market share and 14th largest retail chain store in the world (Sainsburys.co.uk, 2015). However, it has remarkable share portion in UK market that almost near 16.9% in 2015. This company is committed to provide products with reasonable price and best quality of products.
As this successfully runs its operation United Kingdom, it wanted to expand its operation in outside of United Kingdom. That’s why it chose Egypt for its first international expansion. However, it opened its chain store at Cairo in Egypt for the first time(Sainsburys.co.uk, 2015). …show more content…

It has been operating its operation with strong strategy from two centuries. However, the UK market is much competitive than any other country in Europe(Kuada, 2008). The bargaining power of competitors is much greater too. In this context, Sainsbury is setting its marketing strategy based on customers. The main strategy of this company is reasonable price that differentiate its market from that of other competitors. On the other hand, it manages it supply chain, transportation, production cost strongly that gives better option comparing other …show more content…

2.2 Threats
Intense competition
Change in testes
Undeveloped market
Lower economy
Prone online platform
Mature market
Volatile costs

3 Pest analysis of Egypt
PEST analysis refers analyzing about the political, economic, social and technological factors of a country that is selected for new international business expansion (Fine, 2009). In this PEST analysis, I will give a short overview of political, economic, social and technological factors of Egypt.

Figure: PEST Analysis
3.1 Political factor
Political factors are the combination of tax rate, political stability, tariff, laws etc. (Fine, 2009).
These types of elements of political factor ha larger impact on retail organization which is going to be formed. However, especially in Egypt, there is political chaos, instability, undeveloped economy and poor lifestyle. In this context, the plan of setting a retail store is much challenging to any manager(Ajami, 2006). However, Sainsbury wanted to set up store in this country was a great challenging for the managers of this company.
3.2 Economic

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