Sainsbury's in Eastern Europe

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Market Entry in Eastern Europe

“Sainsbury Looks East for Inspiration”


Date: 23/02/09
Author: Vivek Mistry, Head of New Market Development
Distribution List: The Sainburys’ Board of Directors

The main findings show that Slovenia is a democratic country, and one of the most liberal in Eastern Europe. The country’s economy is stable and growing, and compares well when compared to the European Union. The report shows the size of the Slovenian retail market and identifies potential competitors in the market, as well the advantages of targeting this market.

Terms of Reference:
Due to the mature and competitive nature of the UK retail market the Sainsburys Board of Directors has asked me, the Head of New Market Development, to assess the potential of the Slovenia as new market. The report provides detailed information about the Slovenian economy and retail market.

The aims of this report are to establish whether Slovenia is a suitable country for Sainsbury to expand into. The report will provide an overview of the country, a PESTEL analysis of the country, a SWOT analysis of the Slovenian retail market, and my recommendations to the board. I will also use graphs and tables to illustrate trends, and patterns in the Slovenian retail market.

I have extensively researched the key issues that are going to affect the Board of Directors’ decision. I have used a wide range of Internet source in order to acquire the most up to date, relevant, and accurate information.

Country Profile:
Slovenia is a country located in Central Eastern Europe, and has population of over two million people. The capital of Slovenia is Ljubljana and has a population of 265,881. It shares borders with Hungary to the northeast, Croatia to both the South and East, Austria to the north, and Italy to the West. The country covers an area of 20,273 sq km or 7,827 sq miles.

The Slovene lands were originally part of the Austro-Slovene Empire until it was dissolved at the end of World War I. Due to the threat posed by who occupied Istria, Primorska, and some parts of Dalmatia and pressuring from the Serbs, the Slovenes, along with the Serbs and the Croats then became a member of the new multi-national state which in 1929 was named Yugoslavia.

The Slovenians, who were unhappy with how the majority Serbs were utilising their power held a referendum on Slovenia’s independence on the 23rd December 1990 was held and passed with 88% voting for independence. As a result on the 25th of June 1991 the Republic of Slovenia declared its independence. The Slovenians then achieved independence in 1991 after a short and bloodless ten-day war, in which the there only 67 casualties, after the Yugoslav People’s Army encountered stiff resistance from Slovenia.

PESTAL Analysis


Of the former Yugoslav states, Slovenia is definitely the most liberal. Since gaining independence Slovenia has aimed for a stable economy, pursued political transparency, and stressed its Western viewpoint. Slovenia is a democratic republic, with a multi-party government. The current government of Slovenia is coalition government consisting of the Social Democratics, the Zares Party, the Liberal Democracy of Slovenia, and the Democratic Party of Pensioners, although in reality there is little difference in the values of each party.

The government consists of a President of the Republic. This is a role comes with fixed powers but is in reality it largely ceremonial. Any Slovenian citizen can run for President, and is directly voted by general election with secret ballad. The terms last for five years, and an elected President can only serve a maximum of two terms. One of the roles the President is the Commander of Chief of the Slovenian Armed Forces. Other duties includes calling general elections, suggesting candidates for Prime Minister to the National Assembly, assigns and summons up ambassadors, awards clemency,...
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