Market Expansion Strategies of Kaufland in Australia: A Strategic Management Analysis

RUNNING HEAD: Strategic Management
Strategic Management
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Strategic Management 1
Executive Summary
The paper evaluates the market expansion strategies of the company Kaufland. Kaufland is
aiming to enter in the retail market of Australia with an aim to expand the scope of business and
successfully expand the scope of business as well. Kaufland is a German giant company that is
present in the retail industry. The company has targeted Australia and is aiming to open five
retail stores at suburb places in the country. The Hambrick and Frederickson’s Strategy Diamond
model has been used in the case to explain the strategic move of the company and challenges that
they might face while initiating it. Further, findings from the strategic application has been
evaluated along with a few recommendations. From the analysis, it was concluded that the
company Kaufland is a giant organization that will eat the existing companies like Aldi, Coles
etc. present in Australia. Kaufland adopted Greenfield investment strategy to enter in the market
and succeed as well. Through the analysis, it was recommended to the company that they should
focus on doorstep delivery of product along with selling. The company should also focus on
creating good infrastructure, and adequate promotional strategies.

Strategic Management 2
Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................2
Case Analysis...................................................................................................................................2
Use of Hambrick and Frederickson’s Strategy Diamond................................................................3
Findings...........................................................................................................................................5
Conclusion and Recommendations..................................................................................................6
References........................................................................................................................................7

Strategic Management 3
Introduction
The purpose of this report is to provide brief information about the case of Kaufland acquiring
land in Australia for business purposes. The report discusses about the motive of Kaufland to
enter in the market of Australia. It also describes the ways in which the company wants to enter
in the Australian market using strategic management tools and techniques. The report discusses
about the analysis of the given case along with the use of Hambrick and Frederickson’s Strategy
Diamond model by the company to successfully create a market presence. Further, the finding
explains the information gained about the strategic practice of company (Tomasevic, and
Spasojevic 2018).
Market entry is considered as the most way aspect for a business willing to expand its scope of
activities. It is important for the company to adequately make use of marketing tools and
techniques to place themselves at a reputable position in the target market. More details about the
report are discussed below:
Case Analysis
The case published in Sydney Morning Herald on 1st of June, 2018 explain about the market
entry of the German Giant Kaufland in Australia. The headline, ‘Coles, Woolies under siege as
German giant Kaufland eyes five superstores’ explains the pressure created on other supermarket
with the expansion strategies of the company Kaufland. Kaufland is a German hypermarket
chain store organization that is a part of the Schwarz Group. This group also owns other famous
organizations naming Lidl and Handelshof. The company is a privately owned organization that
is present in retail industry since 1984 (Blahová 2017).
Coming upto the case, it should be noted that the article states that Kaufland is aiming high to
open five new supermarket stores in the market of Australia. The company wants to expand $90
the market of Australia by exercising their resource and capabilities and initiating sales in
Australian market as well. Kaufland is a part of world’s fourth largest grocery stores and has