Topic: market entry in europe

Structure

Typical Short Report Structure

1. Firstly title Page & Contents Page

2. Secondly introduction & (Brief) Methodology

3. Thirdly findings & Analysis (in different sub-sections)

4. Conclusion(s)

5. Recommendation(s):

6. References

7. Finally appendices

Food Market Brief

1.0 Background Scenario: You are the Head of New Market Development at J.Sainsbury PLC. Therefore as a result of today’s Board Meeting the Directors have given you the following brief:

2.0 Brief: Given the highly competitive nature of the UK food retailing industry, coupled with the relative maturity of the market.  Thus the Board of Directors is willing to consider European expansion as part of a new corporate strategy (Europeanisation). Additionally, given previous unsuccessful attempts to enter overseas markets the Board is anxious that any potential market is thoroughly researched and analysed to minimise the risk of any further foreign direct investment.

The Board is primarily interested in two countries; Slovakia or Czech Republic. Consequently, both countries are relatively newer members of the EU. Therefore these national markets are marginally less developed and still slightly more fragmented than those of Western EU member states, but currently offer greater potential returns, particularly for firms exploiting scale economies, core competencies and industry knowledge.

 3.0Further  Requirements.

Select ONE of these two countries for analysis. For the country selected you are required to analyse its suitability, or not, for market entry (FDI) by J Sainsbury PLC and report their findings, also  with appropriate recommendation(s) to the Board of Directors. Specifically, carry out a formal macro (country) and micro (food market retail industry) screening process on the country to determine its relative attractiveness for supermarket retail investment. Consideration should be given to broad macro-environment variables as well as industry-specific data.

Your ‘pathfinder’ report should make clear, concise and also well-supported recommendations as to the appropriate strategy the Sainsbury’s Board should adopt with regards to the country under consideration. Also they should investment be advocated then the specific mode of entry should be recommended, with brief supporting rationale. In each part clearly explain the rationale and criteria you are using for screening/selection process, as well as any assumptions you have made.

Report should be on the perspective of Sainsbury’s, which country is more attractive to Sainsbury

Research data and interpret data to Sainsbury

include positive and negative data

Macro (country)

Good sources country profile, WTO, IMF, World Bank, economist, EU

Use PESTLE and SWOT analysis

Use time series data up to 6 years

Cross sectional data

Micro (Industry)

Firstly, what is the market structure like?

Secondly how completive is it, who are the key players, is there room for new players?

Finally is there a strategic fit for Sainsbury?

For overviews of possible selection / screening techniques see:

Firstly, Durand, C. & Wrigley, N. (2009) Institutional and also economic determinants of transnational retailer expansion and performance. Further a comparative analysis of WalMart and Carrefour, Environment and Planning A, volume 41, pps.1534-1555.

Kim, J. & Aguilera, R. (2016) Foreign Location Choice: Review and Extensions, International Journal of Management Reviews, Vol. 18, 133–159

Malhotra, S., Sivakumar, K. & Zhu P. (2009) Distance factors and target market selection: the moderating effect of market potential. International Marketing Review Vol. 26 No.6, pp.651-673

Sakarya, S., Eckman, M. & Hyllegard. (2007) Market selection for international expansion. Assessing opportunities in emerging markets. International Marketing Review, Vol. 24 No.2

Whitelock, J. & Jobber, D. (2004) An evaluation of external factors in the decision of UK industrial firms to enter a new non-domestic market: an exploratory study. European Journal of Marketing Vol. 38 No. 11/12, pp. 1437-1455.

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