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Sainsbury's International Strategy

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Report 1

1. Introduction

The first supermarket of Sainsbury’s was established in 1869 by John and Mary Ann Sainsbury. Sainsbury’s is a multinational corporation (MNC) located in the UK. Its chain was Britain’s oldest remaining main food retailer and a leading food retailer in the UK and the US. “It also operated in financial service and real estate” (Sebora, T., Rubach, M. and Cantril R., 2014). The group encompassed of Sainsbury’s Supermarkets and Bank in the UK and Shaw’s Supermarkets and Star Markets in the US (Sebora, T., Rubach, M. and Cantril R., 2014).

In hopes of stimulating the slow growth of its core supermarket business and stopping the losses in market share, Sir Peter Davis was appointed as CEO in 2000 (The Economist, 2003).

This report assesses the opportunities and risks associated with Sainsbury’s decision to expand to Egypt whether it was a good selection for Sainsbury’s international expansion by using PESTEL analysis. It also analyzes Sainsbury’s resources and capabilities by using VRIN analysis to draw a conclusion on Sainsbury’s competitive advantage.

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Even though, that was a fundamental system in the market which is bar coding of all items sold out throughout stores. Until the bar coding requirement came into action completely, each store shall place bar-coded stickers on items to check purchase registers. However, it was quite costly in conditions of both workers and materials. As a result, it led to inaccuracies of the inventory control systems and jeopardized using the developed marketing analysis reports form automated sales systems effectively. And, the report was about the marketing decisions which items must be bundled and maximize profit pricing of products, and the reordering of profitable commodities (Sebora, T., Rubach, M. and Cantril R.,

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