ASDA expansion to KSA Essay Example | Topics and Well Written Essays - 2500 words

ASDA expansion to KSA - Essay Example The report includes the findings and challenges faced in compilation of the report. Table of Contents Executive Summary 1 Table of Contents 2 1.0.Introduction: 3 1.1.What Should Be Considered and How 4 1.2.Saudi Arabia Overview and PESTLE Analysis: 4 1.2.1.KSA PESTLE Analysis 5 1.2.2.Political analysis 5 1.2.4.Social and Cultural Analysis 6 1.2.5.Technological Analysis 6 1.2.6.Legal Analysis 6 1.2.7.KSA Business Environment Analysis 7 4.0.Market Entry Strategy 9 5.0.Marketing Mix and Product Adaptation and Development 11 6.0.Conclusion 12 Appendix: Clients Preference for Different Supermarkets. 13 Works Cited 14 ASDA Expansion Plan to KSA 1.0. Introduction: Companies are increasingly becoming globalized. The main reasons why companies opt to expand their operations to a global level include increasing their sales due to availability of new markets, acquisition of new resources which could be domestically unavailable or expensive, opportunity to diversify business operations, minimiza tion of competition, and a possible opportunity to minimize tax deductions. Expanding business to a global level results in growth of operation and thus requires coming up with a different plan to facilitate the transformation of the business premise from local dealings to global ones. The plan should be dependent on the kind on business in question since different business has different ways of operating (Alpen Capital, 2011). While seeking to expand business operations globally, it is vital to develop an expansion plan, which should include market research to ensure that your company has a proper understanding of the market conditions in the new nation thus develop ways to adopt to the different government policies, technologies, laws and competition (Luo, 1999). In the past, globalization mainly involves large companies. However, retail businesses are continually becoming interested in globalization. A good example is the supermarket retails such as Tesco and ASDA found in UK and have currently expanded their operations to other regions, which have resulted in increased sales and profits. KSA is one of the nations that many companies are eyeing due to the readily available market (Business Monitor International, 2012). This study focuses on a plan that ASDA, a UK based retail supermarket, could adopt to expand its market and venture into KSA. ASDA Stores Ltd.  is a supermarket chain with headquarters in UK, which sells food, general merchandise, clothing, toys in addition to offering financial services. Additionally, ASDA owns a mobile telephone network called ASDA mobile. This study aims at analyzing the market conditions in KSA by exploring the following aspects: A market plan that ASDA can use to expand its market into KSA ASDA background The appropriate mode of entry into the market Marketing mix and Product adaptation and development 1.1. What Should Be Considered and How Before deciding to expand the market into KSA, it is important that ASDA carry vigorous research on the market situation in since global expansion process is often a risky choice faced by challenges. However, carrying out a prior research helps in coming up with ways to counteract the challenges. For ASDA to be in a position to triumph in KSA, it is import