International Market Entry Strategies of Multinational Enterprises in China

Seminar paper from the year 2015 in the subject Business economics - Trade and Distribution grade: 10 Edinburgh Napier University language: English abstract: While in the United Kingdom the grocery market is saturated and growth is only achievable by gaining market share of a competitor the People's Republic of China (PRC) has significant growth opportunities due to a large population and an increasing middle class with a growing disposable income. However time pressure is high as many companies seeking to exploit the high growth rates accordingly investments will become more expensive. Although China has strong growth potential it is still a relatively poor and state-controlled country with a multitude of regulations and risks. Hence this report will assess risks and opportunities associated with a market entry in order to facilitate Sainsbury's decision whether or not to expand its retail business to the Chinese market as well as provide recommendations concerning an appropriate market entry strategy.