I. Introduction
Founded by John James Sainsbury was Mary Ann Sainsbury and printed in 1986, the retail chain of the oldest in Britain. Products are offered with high quality and reasonable price. In Cairo, printed in 1999, Sainsbury's name is printed Mentioned many places, the store's products are sold at lower prices other coal stores. In 1999 khi Sainsbury Joined Egyptian market, it has Developed very Quickly, thậm the line of Egypt to cease operations vì it không Compete. This article talks about the culture of the Differences in the British and Egypt. Thereby, evaluate the Influence of strategies in each market.
II. Main body
Any business when their products to foreign markets is the first factor to consider is the products that fit the needs, preferences, tastes, customs, or in other words more than culture. If no suitable product that will have a consumer boycott or no demand.
Due to the cultural differences of each country, each region, each nation ... create challenges great for marketers in international marketing activities. These misunderstood the meaning of images, messages, product advertising model by language, different business practices make it difficult for businesses. So the cultural differences of the UK and Egypt will affect the business strategy of each market.
The first is the communication barrier. The manager did not speak English, making it difficult for Egypt to communicate. When Sainsbury expanded into Egypt, previous cultures in UK has not met for the staff in Egypt, so they are not interested in the mission of the Sainsbury Sainsbury market expansion in Egypt. For a short time, Sainsbury was not able to train for employees in Egypt to meet and adapt to technical requirements and those of Sainsbury. On the other hand, the British did not listen to the opinions and suggestions of the staff of Egypt, so the loyalty of staff in Egypt for Sainsbury is very low, they are not interested in the success and failure of Sainsbury and Sainsbury not achieve the desired requirements. However, Egypt is a potential market, large population, the demand for products is high people. Sainsbury's goods have met the requirements of British and sell very well. But when the market expanded into Egypt, Sainsbury must target customer sentiment in Egypt, and change product design simple, very simple motifs, and combined with moderate brightness will attracted the attention of many customers in Egypt, which has attracted a large number of customers to Sainsbury
One challenge they face is to change the perception of consumers about fresh meat can not; adjust the display and layout of the different products, you can overcome this problem. Another problem, the fear of mad cow disease resulted in no one needs for the beef
second is cultural conflict. Culture shock is a process of psychological impact on people living and working abroad. On the other hand, cultural differences influence work in perspective. British director to have more time to understand and adapt to a new culture for effective business strategy. When the British into Egypt to work, differences in language and culture has caused barriers in communication and management, affecting work. On the other hand, the Egyptians no clear cultural hieur Sainsbury has caused some difficulty, and trouble at work
Tuesday as the difficulties in assessing the results of their work, as the leading culture different chemicals to different assessments of performance. The manager of England often based on rigid data to evaluate staff performance in foreign subsidiaries as revenue, profit or brand development.
The Egyptians always be competition on prices, So when Sainsbury joined Egyptian market, Sainsbury to reform and change the pricing policy. The Egyptians often appreciate the quality products and high prices. The high quality meat and sell for high prices always attract the attention of customers in Egypt. and on the other hand, the beverage products in cans are attracting more customers with bottled drinks. The Egyptians are willing to pay a higher amount to buy the products of good quality. While Sainsbury's products are widely known in the UK and Egypt. British widely used and there is no distinction, In Egypt it has factored form Sainsbury discrimination between social strata, and does not meet the attention of the luxury class as in the UK.
In future, to have access to the Egyptian market, there are three strategies available to consider: Reduce the scale of operations, find new local partners, selling the company. Therefore, Sainsbury should adopt appropriate strategies for success. That is the strategy applied will be discussed in detail.
Reducing the scale of operation:
When the market expanded in Egypt, Sainsbury was trying to attract the market, however, it does not meet the requirements of the class luxurious, they are aware that the products of Sainsbuury is inexpensive and no special quality requirements. Due to market demand, so the reduced scale of operations necessary nature. On the other hand, when Sainsbury market expansion into Egypt, the company hopes to acquire a large resource, the company has applied advanced techniques of the West in the Egyptian market. However, they made many tough encounter. When Sainsbury using discount sales strategy, they do not receive the love of the people dduocj Egypt. And strategies that prices have affected the stability of prices in the Egyptian market. the emergence of a group purchase products with equivalent price of Sainsbury, has caused the price competition. Besides, the denunciation policy retail selling prices of Sainsbury has caused some difficulties. Sainsbury Forced to abandon this policy. Therefore, reducing the scale of operations necessary identifiable
Find new local partners:
When Sainsbury market expansion into Egypt, the HR manager is a difficult problem for Sainsbury. If Sainsbury bring people from their headquarters to Egypt, they must spend a considerable cost to the allowance for relocation, cars and homes. However, they recruit graduates of local residents, and professionals with limited experience to adjust the new hire that match the strategy and culture of Sainsbury. Labor costs turned out to be higher than the original forecast, due to lower productivity. These local regulations as serious as labor costs. For example, Sainsbury had committed the error is no guarantee appropriate work permits for workers in a shop in Cairo, so they have no place to work. On the other hand, local staff do not understand and adapt to technical requirements Sainsbury, they are not compatible with the type of management of Sainsbury, Sainsbury's culture does not adapt to the Egyptians, disgruntled employees, not interested in the company. This is especially true at the lower level, where employees aware Sainsbury is a foreign partner strategy aims to withdraw profits from Egypt. Furthermore, the store manager of Sainsbury did not listen to their local staff, who have suggestions. The result often shows the loyalty of staff at lower levels lead to high losses. These problems do not only occur in employees, but also occur in the outsourced staff and external activities often do not meet the expectations of Sainsbury.
For example, it is difficult to find local regulators authorized and established distribution channels. Also, Sainsbury had difficulty in dealing with the local authorities. The most important thing is the distribution channels, distribution channels with little or no distribution channels, how businesses can operate and achieve profitability? Therefore, finding local partners is necessary, and useful in the recruitment and training of human resources and business activities of enterprises
Sales Companies:
In general, compared to the 2 strategies above, the resell the company is reasonable and possible. Number of items sold in Sainsbury's pretty high. However, Sainsbury's did not get the support from the government of Egypt. Demonstrations occurred, causing damage to the workers in Egypt, a large number of them prefer to buy products from the traditional, although the price is higher than Sainsbury, and the Sainsbury was voiced to boycott, and the Egyptian government has no policy to support Sainsbury to deal with cases of bureaucracy, through customs, made headlines Sainsbury faced difficulties in importing goods. Besides, there is the existence of competitors locally, has caused many difficulties
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