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Lidl Super Stores: Strategic International Business Management

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Added on  2019-09-30

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This paper analyzes the international market expansion strategy of Lidl, a discount supermarket from Germany, and suggests Canada as the suitable country for investment. It includes PESTLE analysis, Porter's five forces analysis, strengths and weaknesses analysis, and evaluation of various modes of entry.

Lidl Super Stores: Strategic International Business Management

   Added on 2019-09-30

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Lidl Super StoresStrategic International Business ManagementStudent Name: Student ID: Course Name: Course ID:Faculty Name: University Name:
Lidl Super Stores: Strategic International Business Management_1
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
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Direct Exporting........................................................................................................................10Indirect Exporting......................................................................................................................11Licensing....................................................................................................................................11Franchising................................................................................................................................11Wholly Owned Subsidiaries......................................................................................................12Joint Venture..............................................................................................................................12Recommended Mode of Entry...................................................................................................12Conclusion.....................................................................................................................................12References......................................................................................................................................13Appendix........................................................................................................................................15
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IntroductionThe current paper is focused on understanding the international market expansion strategy of Lidl. Three countries have been analyzed for the company and the suitable one has been suggested. 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 Germany which has more than 10,000 stores in Europe (Geppert et al, 2015). The company was established 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 international markets 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 for the 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 democratic government and there are less likely that any major change is going to take place in coming few years in the political situation of the country (Lightbody, 2006). The stability in the policies designed 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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