Expansion of LIDL - Norway and Mexico

Running head: EXPANSION OF LIDL
Expansion of Lidl
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EXPANSION OF LIDL
Table of Contents
Task 2...................................................................................................................................2
PESTEL analysis of Norway...........................................................................................2
Task 3...................................................................................................................................4
Porters Five Force Model................................................................................................4
Task 4...................................................................................................................................6
Value chain analysis........................................................................................................7
Task 5...................................................................................................................................9
Reference List....................................................................................................................12
Appendix............................................................................................................................15

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EXPANSION OF LIDL
Task 2
From the analysis which have been conducted on Norway and Mexico it is clear that
Norway will be the best option for Lidl to enter. The future plans which have been made by Lidl
must be implemented in Norway and the company must look forward to expand its business in
Norway.
PESTEL analysis of Norway
Political factors: In the present time it has been seen that Norway is politically stable as
compared to Mexico (Normann 2015). There are absence of any kind of political disruptions in
the country and the various implications which might hamper business in the country is absent.
There are huge implications of political disruption on a business (Normann 2015). The public
residing in Norway have full trust on their government and there have been seen that the
government efficiency is increasing in the country. The Monarchy system in the country is
keeping the country in a political stable condition and it has also been seen that that there are less
number of crimes in Norway as compared to Mexico. The political environment of Norway is
ready to allow new companies like Lidl in the country as there are no political upsurges in the
country and also there are no viable terrorism act in the country.
Economic factors: The various economic rates of the country as well as unemployment
rates in the country suggests that the business of Lidl in the country will be viable for the
company. With the implementation of better business proposition in the country Lidl will be
easily settling up its business in the country. The GDP per capita in the country is 81, 695 USD
which is a very good number for Lidl as it shows that the country is economically stable and the
various values of the products and goods which were produced by the country in 2018-2019

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EXPANSION OF LIDL
(Gullberg, Ohlhorst and Schreurs 2014). In Norway it takes an approximate time of 4 days to
start a business in the country which is quiet less as compared to Mexico.
Social factors: The life expectancy in Norway is 82.1 years which ensures that the
country is adaptable to the various labor needs of the country. The 99 per cent literacy rate in the
country the country will be understanding the value of Lidl in the country (Pacolet, Bouten and
Versieck 2018). The labor efficiency in the country is 76 per cent which ensures that Lidl will be
easily able to gather a lot of staffs in the country.
Technological factors: It have been seen that Norway is 87 % technologically advanced
and 94 % ready for the adoption of newer technology (Fei, Rasiah and Shen 2014). This will be
very helpful Lidl as the company is already technologically advanced and it will be easy for the
company to adapt itself in Norway. The main aim of Lidl on entering Norway is to bring
innovations in its products as well as services which will become easier looking at the
technological advancement of Norway. The government of the country invests a huge amount of
money on various technological advancements which enables the various industries of the
country to use those technology.
Environmental factors: The various state controlled business of the country is producing
different kinds of cutting edge technology which is keeping the country ahead of many. This
environment of the country will be very helpful for Lidl to grow in the future. The people of the
country are slowly moving towards the various energy sources which have less impact on the
environment (Høgevold et al. 2014). Lidl have been known to be environment friendly so that
people of Norway will be readily welcome Lidl in their country keeping in mind the environment
friendly practices of Lidl.