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Table of Contents

Question 1.......................................................................................................................................2
PESTLE analysis of Sainsbury's Egypt.......................................................................................2
Political factors...............................................................................................................................2
Economic factors............................................................................................................................2
Social factors..................................................................................................................................3
Technological factors.....................................................................................................................3
Environmental factors...................................................................................................................3
Legal factors...................................................................................................................................4
Question 2.......................................................................................................................................5
VRIN Based Competencies Analysis of Sainsbury.....................................................................5
Value................................................................................................................................................5
Rarity..............................................................................................................................................5
Inimitability....................................................................................................................................5
Non-Substitutability......................................................................................................................5
References.......................................................................................................................................7

Question 1.
PESTLE analysis of Sainsbury's Egypt
A PESTEL analysis is a tool to monitor and analyses the macro-environmental. In this report we
have the PESTLE analysis of Sainsbury's Egypt as follow:
Political factors
Sainsbury's is an organization which is situated in the UK hence Sainsbury's execution is very
impacted by the political components in this nation. An expanded globalization could act like
both an open door and a test to Sainsbury's. It is a test in such that it would need to go up against
obscure powers and to discover the wellsprings of the items with prudent and quality qualities.
The enterprise duty is at 28% not at all like a couple of years prior when it was 30%. This
implies Sainsbury's alongside other huge associations would spare an enormous aggregate of
cash in view of this lower rate of company duty (Owen, 2001).
Economic factors
The increasing expense of energizes is one of the greatest monetary components that may be
influencing Sainsbury's. This ascent in expense implies that it influences the store network of
Sainsbury's bringing about the item costs to increment. The worldwide nourishment emergency
which is progressing would likewise bring about Sainsbury's increasing the expense of their
items. A standout amongst the most clear monetary elements that may influence enormous
association like Sainsbury's is the credit crunch. It could have a gigantic effect on the general
offers of Sainsbury's as the customers would have a lesser acquiring power consequently they
would be more cautious on their spending and would be purchasing lesser extravagance things
which is one of the great wellsprings of benefit for Sainsbury's (Kapner, 2001).
This implies if the buyers begin spending less, the benefits picked up by Sainsbury's future less
which could prompt results like Sainsbury's not having the capacity to extend and repair its
stores and it may likewise prompt occupation misfortunes. The unemployment rate is continually
ascending in the Egypt. This could stance to be a positive thing for Sainsbury's as they would not
have as much issue attempting to discover representatives for their association. In any case, this
could likewise be an issue for Sainsbury's as the work expense must be continued personality.
Every one of the workers must be paid in any event the national the lowest pay permitted by law
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subsequently Sainsbury's would need to attempt and remain focused spending plan and not
utilize an excess of individuals as this could hamper the funds (Abdi & El Masry, 2000).
Social factors
The expanding social pattern in more advantageous nourishments is an extraordinary open door
for Sainsbury's. It is the social pattern like this that Sainsbury's would need to pay special mind
to so as to stay aware of the purchasers. As it is known, there are numerous different retailers like
Sainsbury's which are in rivalry. In the event that clients are troubled with the administration
gave by one retailer, they have an extensive variety of different retailers that they can go to, in
this way Sainsbury's train their staff to be friendlier and more accommodating to their clients so
they can drive more deals and pull in more clients in view of the administration their
representatives give.
Sainsbury's additionally needs to stay aware of its business sector by giving items which are all
the more socially acknowledged in the present business sector. Sainsbury's is included in
foundations, raise stores for a wide range of reasons, patron recreations, and organize social
exercises and some more. This demonstrates Sainsbury's is taking after the obligation regarding
the general public and its environment (Owen, 2001).
Technological factors
The right use of technology is an inevitable necessity for retailers like Sainsbury's. Being a major
retailer, there are numerous things which are simply unrealistic to be done physically. Cases of
this incorporate the checkout framework and the stock administration. With a specific end goal to
keep up, Sainsbury's everywhere throughout the nation are having to continually redesign their
advances, for example, presenting self-checkouts, moving up to all the more effectively filtering
checkouts, automated stock controlling and so forth. Having advances, for example, the
mechanized checkouts implies that there is a lesser edge for human mistakes and less research
material. The internet shopping office is additionally an extraordinary mechanical point of
interest for Sainsbury's. On the off chance that utilized productively with a decent conveyance
framework, it can be exceptionally gainful for Sainsbury's.

Environmental factors
The decrease of CO2 impression is has been given a great deal of accentuation to huge
organizations. Organizations like Sainsbury's can contribute a ton to the lessening of CO2
impression accordingly Sainsbury's need to demonstrate that they are not bringing on a ton of
effect on the earth. To do this present Sainsbury's would need to put in more towards the green
issue. There are additionally a considerable measure of moral issues which are joined with
retailing, for example, offering natural nourishments, treatment of creatures and so on. This
implies Sainsbury's would need to make accessible morally satisfactory items which are at a
reasonable cost for the purchasers.
Legal factors
Sainsbury's is all around limited by numerous lawful issues, for example, the national the lowest
pay permitted by law approach, liquor offering age enactments, segregation and reasonable
treatment enactments and so on. For the wellbeing of the association, Sainsbury's would need to
be seeking after these enactments; neglecting to do as such may take after numerous sorts of
results. Sainsbury's need to keep up distinctive sorts of lawful laws which incorporate, shopper
laws, rivalry laws, work laws and wellbeing and security laws (Wahish, 2000).
Sainsbury issues in international expansion were as follow:
At the point when Sainsbury's moved into Egypt, they had desires for winning tremendous
benefits as the first organization to present wide-scale western market strategies into Egypt's
scene. On the other hand, the aggressive strategies embraced by Sainsbury's made issues.
Sainsbury's system of rebates, mass showcasing and week by week deals had not charmed itself
to Egyptians. Sainsbury's low value methodology had extremely negative impacts on value
security in the Egyptian market. The estimating of a few items under expense prompted
allegations of dumping and endeavors to hoard. There were likewise media condemnations of
Sainsbury's focused valuing arrangements. Subsequently, Sainsbury's was compelled to surrender
its misfortune pioneer approach (Bowers, 2001).
Finally in the answer of the question which was Egypt a good choice for Sainsbury international
expansion, the answer is yes, but succeeding overseas as a retailer is not easy and takes patience.
Retailers such as Sainsbury must define their brand with the customers, build a new supply chain
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with suppliers who do not rely on you for success, and understand the politics of the market. A
common trait in the retailers who have succeeded is that they believe they have more to learn
from the shoppers in the new country than vice versa.
Question 2.
VRIN Based Competencies Analysis of Sainsbury
The VRIN criteria are used to assess the organizations capabilities which can provide
sustainable competitive advantage. These are Value, Rarity, inimitability and non-substitutability.
These competencies are available in detail in following:
Value
The quality, ethical and 100% local meat and fresh food sourcing adds superior value to value
proposition that Sainsbury offers to its customers. Full responsibility for bank to convey
monetary items better than its rivals is additionally including qualities. Sainsbury's private brands
like TU in dress and "Taste the Difference" are likewise including extraordinary quality.
Rarity
Sainsbury Meal Ticket and Student Loyalty Card
Sainsbury's presented a Sainsbury Meal Ticket for understudies. It comes in two cards and the
thought is, that one card will stay with the folks and the other one will be kept by the tyke. The
folks can stack the cash onto the card, and the individual with the other card and childs can
utilize it in just Sainsbury stores (Schemm, 2001).
Inimitability
A positive client's faithfulness with Sainsbury Brand. Sainsbury as a brand Sainsbury is a 144
years of age which this brand known as dependable grocery store offering quality, new and
divine nourishment for eras. Sainsbury as a brand itself is a patent brand which no other
organization can utilize. Sainsbury's image worth is based on its image picture. Additionally best
administration on leading body of Sainsbury like CEO Justin King and CFO John Rogers are
supreme for Sainsbury.

Non-Substitutability
Sainsbury's Convenience stores in internal towns give occupied and time poor youth and little
families a more prominent access and comfort to shop. The adolescent in the public eye like to
live as singles or with their accomplices without any children or maybe a couple. These youthful
and portable individuals adoration to shop at nearby accommodation stores either at strolling
separation or bike (Sami, 2001).
Another factor which can provide an excellent competitive advantage is collecting consumers
data in a database. The database can provide an excellent competitive advantage because it will
help the management to design the product, offerings, and travel and tour packages as per the
preferences.
The database can also be utilized to acquire knowledge about customers such as

Number of family members in Egypt


People spending habits in Egypt
People income estimates in Egypt
Preferences with respect to food etc.
Egyptian holiday routines

Sainsbury's could select the Market Development procedure with offering its current result of
Grocery Store and venturing so as to offer it to another business sector into a developing
universal market, for example, Egypt. Egypt, the most populous Arab nation with 69 million
populace which will be a force in today's business world and its local business sector allows
huge potential for international companies with promising growth.

References
Abdi, A. and El Masry, M. (2000), Egypt retail food sector report 2000, GAIN Report No.
EG0034, available at: www.fas.usda.gov/scriptsw/AttacheRep/attache_lout.asp
Bowers, S. (2001), Protests for Sainsbury our of Egypt with 125m loss, The Guardian, 10
April.
Kapner, S. (2001), Grocer ends Egypt expansion to rebuild its British market, New York
Times, 10 April.
Owen, T. (2001), Regional retail: supermarkets vs the souq, Middle East, Vol. 311, pp. 38-39.
Sami, A. (2001), Supermarket in hysterics, Al-Ahram weekly web site, available at:
http://weekly. ahram.org.eg/2001/530/ec1.htm (accessed 23 November 2006).
Schemm, P. (2001), Sainsburys Egypt retreats at a loss, Cairo Times, Vol. 5 No. 7, pp. 1-4.
Wahish, N. (2000), Clearing its shelves?, Al-Ahram Weekly On-Line, 21-27 December, p. 513.