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SAINSBURY IN
EGYPT
Amlan Das
Rohit Agarwal
Priyanka Agarwal
Shikhar Bhatnagar
Moumita Chowdhury
Sakti Pada Purkayasta
Introduction
• UK head quartered multinational corporation (MNC)
• Leading UK and US food Retailer
• Operated in financial services and real estate
• Comprised of:
Sainsbury supermarkets
Sainsbury bank in the UK
Shaw’s Supermarket and Star markets in the USA
Objectives
• Mission “First For Food”
• Objectives meet customer needs effectively
• Provide shareholders with good sustainable returns
• Offered 23000 products with 40% inhouse brand
• Second largest market share in the UK retail super market(11.9%)
International Expansion
• Wal-Mart capturing UK market
• 3 main opportunities:
• Short term return on investments
• Medium term return on investments
• Long term return on investments
Why Egypt?
• Egyptian market offered considerable potential
• Concentrated population
• Largely unexploited domestic food market
• Higher expenditure on food
• Banking business opportunities
• Stepping stone to other middle east counties
Human Resource
Management
• A Major Challenge
• Transference of 64 expatriates from its headquarters
• Family relocation allowances
• High labor and management cost
• Poor extensive training due to lack of time
• Outsourcing issues
Marketing
• Stores tailored to match target customers
• Concentration on simplicity, moderate illumination and basics
graphics configurations
• Continuous modification in response to sales report and sales figure
• Utilization of brand name
• Focus highly populated areas
• Potential customers with medium purchasing power
• Introduced 130 Key value Items (KIV)
• Introduced bar-coding in products
Sainsbury’s PESTEL Analysis
Political
• Favorable Investment Condition
• Good relation of British Government and Egypt Government
• Later Degraded Relation
• Seen as Jews supporter
• Fatwas Issuing
Economical
• Success in US and UK markets.
• 11.9% Market Share in UK.
• Market Challenger in US market
• Ranked 14th among top global grocery retailer with 29,743
Million Euro Sales.
• Joint venture with Edge Group
Social
• One-stop shopping – Non Food Product – Benefitted
• Cheap and Large Variety Product
• Increase Women Work Force – Decline Domestic Meal Making
• Social Discrimination – Show off
• No culture blending of Egypt employee with Sainsbury
Technological
• Barcode System
• Automated Sales System – Marketing Analysis System – Pricing decide-
Bundle etc.
• Online Business ( UK) – Wanted for Egypt
Environmental
• Organic Products
• Reduce , Reuse and Recycle Approach.
Legal
• Clearing Goods Through Custom and Licensing
• Labor Regulation
• Stamping out campaign – Local competitors
Sainsbury’s SWOT Analysis
Strengths
• Market Image and Experience
• Good relation with government
• Deep Pockets
• Cheap & Variety.
Weakness
• Focused only on pricing and
variety
• Excess Standardization – process
n procedure
• Training
• Very fast
Opportunity
• Large Potential Market
• High Consumption pattern of
consumer
• Favorable investment condition
• Stepping stone for further
expansion – Middle East
Threats
• Highly Religious environment –
Unstable
• Lack of government support
• Currency fluctuation
• Lots of labor regulation
• Custom and licensing
• Lack of Bureaucratic support
Sainsbury’s Future in
Egypt
1. Scale down it’s operation ? or
2. Find new local partners ? or
3. Sell the business entirely ?
Lost 55.5% of profit for from 1999 to 2001.
Earning per share decreased from 31.4 to 13.8.
Moreover if people don’t have trust what can be expected from
government.
Religious + Volatile nation. Easily impacted by external environment.
Democracy was not yet mature.
THANK YOU

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Sainsbury in Egypt

  • 1. SAINSBURY IN EGYPT Amlan Das Rohit Agarwal Priyanka Agarwal Shikhar Bhatnagar Moumita Chowdhury Sakti Pada Purkayasta
  • 2. Introduction • UK head quartered multinational corporation (MNC) • Leading UK and US food Retailer • Operated in financial services and real estate • Comprised of: Sainsbury supermarkets Sainsbury bank in the UK Shaw’s Supermarket and Star markets in the USA
  • 3. Objectives • Mission “First For Food” • Objectives meet customer needs effectively • Provide shareholders with good sustainable returns • Offered 23000 products with 40% inhouse brand • Second largest market share in the UK retail super market(11.9%)
  • 4. International Expansion • Wal-Mart capturing UK market • 3 main opportunities: • Short term return on investments • Medium term return on investments • Long term return on investments
  • 5. Why Egypt? • Egyptian market offered considerable potential • Concentrated population • Largely unexploited domestic food market • Higher expenditure on food • Banking business opportunities • Stepping stone to other middle east counties
  • 6. Human Resource Management • A Major Challenge • Transference of 64 expatriates from its headquarters • Family relocation allowances • High labor and management cost • Poor extensive training due to lack of time • Outsourcing issues
  • 7. Marketing • Stores tailored to match target customers • Concentration on simplicity, moderate illumination and basics graphics configurations • Continuous modification in response to sales report and sales figure • Utilization of brand name • Focus highly populated areas • Potential customers with medium purchasing power • Introduced 130 Key value Items (KIV) • Introduced bar-coding in products
  • 9. Political • Favorable Investment Condition • Good relation of British Government and Egypt Government • Later Degraded Relation • Seen as Jews supporter • Fatwas Issuing
  • 10. Economical • Success in US and UK markets. • 11.9% Market Share in UK. • Market Challenger in US market • Ranked 14th among top global grocery retailer with 29,743 Million Euro Sales. • Joint venture with Edge Group
  • 11. Social • One-stop shopping – Non Food Product – Benefitted • Cheap and Large Variety Product • Increase Women Work Force – Decline Domestic Meal Making • Social Discrimination – Show off • No culture blending of Egypt employee with Sainsbury
  • 12. Technological • Barcode System • Automated Sales System – Marketing Analysis System – Pricing decide- Bundle etc. • Online Business ( UK) – Wanted for Egypt
  • 13. Environmental • Organic Products • Reduce , Reuse and Recycle Approach.
  • 14. Legal • Clearing Goods Through Custom and Licensing • Labor Regulation • Stamping out campaign – Local competitors
  • 16. Strengths • Market Image and Experience • Good relation with government • Deep Pockets • Cheap & Variety. Weakness • Focused only on pricing and variety • Excess Standardization – process n procedure • Training • Very fast
  • 17. Opportunity • Large Potential Market • High Consumption pattern of consumer • Favorable investment condition • Stepping stone for further expansion – Middle East Threats • Highly Religious environment – Unstable • Lack of government support • Currency fluctuation • Lots of labor regulation • Custom and licensing • Lack of Bureaucratic support
  • 18. Sainsbury’s Future in Egypt 1. Scale down it’s operation ? or 2. Find new local partners ? or 3. Sell the business entirely ? Lost 55.5% of profit for from 1999 to 2001. Earning per share decreased from 31.4 to 13.8. Moreover if people don’t have trust what can be expected from government. Religious + Volatile nation. Easily impacted by external environment. Democracy was not yet mature.