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Lidl Super StoresStrategic International Business ManagementStudent Name:Student ID:Course Name:Course ID:Faculty Name:University Name:
Table of ContentsIntroduction......................................................................................................................................3Rationale behind Selection of Chosen Market................................................................................3Political Factor.............................................................................................................................3Economic Factor..........................................................................................................................3Social Aspect...............................................................................................................................4Technological Aspect..................................................................................................................4Legal Aspect................................................................................................................................5Environmental Aspect.................................................................................................................5Summary......................................................................................................................................5Opportunities and Threats................................................................................................................5Bargaining Power of Supplier.....................................................................................................6Bargaining Power of Buyers........................................................................................................6Threat of New Entrants................................................................................................................6Threat of Substitute Products.......................................................................................................7Competitive Rivalry.....................................................................................................................7Summary......................................................................................................................................7Strengths and Weaknesses...............................................................................................................8Resources.....................................................................................................................................8Core Competencies......................................................................................................................8Organizational Technology.........................................................................................................8Capabilities..................................................................................................................................9Functional Areas..........................................................................................................................9Organizational Culture.................................................................................................................9Value Chain Activities.................................................................................................................9VRIO Analysis...........................................................................................................................10Summary....................................................................................................................................10Evaluating Various Modes of Entry..............................................................................................10
Direct Exporting........................................................................................................................10Indirect Exporting......................................................................................................................11Licensing....................................................................................................................................11Franchising................................................................................................................................11Wholly Owned Subsidiaries......................................................................................................12Joint Venture..............................................................................................................................12Recommended Mode of Entry...................................................................................................12Conclusion.....................................................................................................................................12References......................................................................................................................................13Appendix........................................................................................................................................15
IntroductionThe current paper is focused on understanding the international market expansion strategy ofLidl. Three countries have been analyzed for the company and the suitable one has beensuggested. The analysis of the countries was done using PESTLE Analysis (see Appendix).Canada is selected as the country for investment. Lidl is a discount supermarket from Germanywhich has more than 10,000 stores in Europe (Geppert et al, 2015). The company wasestablished in 1930 by Dieter Schwarz. A brief analysis of strengths, weaknesses, opportunities,and threats has been conducted. In the end, various modes of entries into the internationalmarkets are assessed and a suitable one is suggested.Rationale behind Selection of Chosen MarketBased on the brief PESTLE Analysis, it has been decided that the Canada is the right country forthe company. The detail PESTLE Analysis of the Canada tries to understand the benefits that canbe gained by the company. In end a summary has been given based on the analysis.Political FactorThe political situation of the country is stable. The country is currently headed by a democraticgovernment and there are less likely that any major change is going to take place in coming fewyears in the political situation of the country (Lightbody, 2006). The stability in the policiesdesigned by the government can also be witnessed. Most of the policies have been developed notto disengage the interest of the businesses within the country.
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