Analyze the Entry Modes of Foreign Retailers in China: A case study on Sainsbury’s

Abstract

With a fast-growing economy that support a population of 1.5 billion, China is believed to hold promise as both an economic superpower and an enormous market in the twenty-first century. Meanwhile, the speed of retailer internationalization has increased dramatically throughout the world. As a result, the study of international retailing has developed from a position of observation, through one of analysis, to one of conceptual exploitation. Selecting an optimal entry mode for the firm is the primary step to compete other international retailers in Chinese market. This dissertation examines various factors that influence the entry modes decision of retail MNEs when they are entering Chinese retail market. Furthermore, an optimal entry mode is discussed as well, by using the case of Sainsbury’s, one of the famous retailers in the UK market and have not expanded into China till now. This dissertation aims to offer a new perspective of the most appropriate entry mode used within the sector of retailing in present China. The best entry mode strategies for retailers to follow in China are suggested to enact a FDI plan or when shifting their current market strategy to better perform in the future