THE STRATEGIC ANALYSIS OF LIDL

Running Head: STRATEGIC ANALYSIS OF LIDL
Strategic Analysis of Lidl
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STRATEGIC ANALYSIS OF LIDL
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Abstract:
This report revealed about the strategic business management of Lidl supermarket chain. The
report also highlighted the possibilities of enhancing Lidl’s market in the target markets of
the two countries Mexico and Norway. The report also highlighted the Porter’s five forces
that was used in the market analysis of Lidl which will help the strategic planners in
formulating an appropriate business plan for the supermarket chain of Lidl.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
TASK 1..................................................................................................................................4
PESTEL ANALYSIS OF LIDL.........................................................................................4
TARGET MARKET..........................................................................................................7
TASK 2..................................................................................................................................8
PORTER’S FIVE FORCES ANALYSIS..........................................................................8
TASK 3................................................................................................................................12
VRIO FRAMEWORK FOR LIDL..................................................................................12
CONCLUSION........................................................................................................................15
REFERENCES.........................................................................................................................16
APPENDIX..............................................................................................................................19

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Introduction
The German supermarket operating in the field of global discounts supermarket chain
has extended its operation around 10,000 different stores around the world with it most
prominent operating unit in Europe. The brand of Lidyl in order to catch the global market at
a faster rate has adopted the market strategy of low pricing that will promote a hassle free
experience in shopping for its global customers, with a store layout with a simplistic pattern.
The company in the recent years has planned out to initiate a revolution in the domain of
grocery shopping. Lidyl initially started as a small store that only employed only 3 people to
sell only a limited number of products. At the present market scenario, Lidyl has expanded its
market base to over 29 total countries(Storey 2016).The long term objective of Lidl is to
achieve success on a long term approach by proper investment made in recruitment and the
training procedures for the all over development of its people.
Discussion
TASK 1
PESTEL ANALYSIS OF LIDL
Norway can be referred to as the most politically stable country which is evident
from its score in the top 10 among the 181 major economies of the world (World Bank’s Ease
of Doing Business Report).So in the context of the market extension of Lidl in Norway, it
stands at a much better position than the other nations in the world. Norway is like to fulfill
the demands of the prosperous economy of Lidl.
On the other hand, the political factors is not as stable as that of Norway. The
economic factors are mainly restricted by the various levels of poverty caused by the

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individual, political and the different geographical factors. The IMF and the World Bank has
prescribed various levels of programs for the eradication of poverty but actually the problem
is becoming more prominent in its form (Heikkilä and Järveläinen 2018).
Norway’s economy can be referred as stabe in the context of the market expansion of
any country. The World Economic Forum has also listed Norway among the 15th most
economically stable nation of the world in the 2008-09 edition of the reports of the Global
Competitiveness Index. Norway usually has recorded a high score on the areas such as the
production of the minority stakeholders and the public trust of the different politicians. The
country also records a high score in terms of the high education and training and in terms of
the relations between the labour and the employees. (Vrontis Weber and Tsoukatos 2018).
Mexico is classified as the upper middle income nation in terms of the economic
feasibility for market expansion. Poverty accounts for 44 % in this country, therefore it is
quite evident that a supermarket chain like Lidl will not have a prosperous growth in Mexico.
The socio cultural and the technological forces also seem to be quite stable which is
evident from the report of the Committee on the Information Society Development that
projects that most of the Norwegian companies use internet as the most common mode of the
distribution channel. From the year 2007 to 2008, Norway has observed a rise in the Internet
use from 4% to 5%. The social factors that influence the markets in Norway are evident from
the prevalence of the restaurants and the personalized web pages for their customers.
The socio cultural and the technological factors of Mexico is characterized by the
various prevalent customs, the attached values and the lifestyles attached to the society. The
socio cultural factors also includes various factors that exist within a societal domain that has
the potential to induce its environment of market expansion.

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Norway has a trustworthy legal system and better regulation norms in terms of the
business and the employer organization in Norway (Sheehan Grant and Garavan 2018).he
specific government factors that affect the operation of the Lidl Company include the
intellectual property laws and the other data protection regulations to protect the ideas and the
patents associated with the operation of the companies.
In Mexico, there are various laws that are associated with the regulations of a
particular agency. The costs of the legal expenses in Mexico and the various settlements will
not be incurred for the various years which are not likely to be repaid by the consumers of the
particular product or the different owners of the company.
SCORING OF THE TWO COUNTRIES
NORWAY MEXICO
Global Competitiveness index 77.5 65
World Bank 25.1 64.8
Economic Freedom 74 65
Tax Burden 58.2 72
Growth rate 1.5% 2.5%
Inflation rate 2% 5.9%
Population 5.5 million 122.6 million
Buisness Freedom 88.6 66.4
GDP(PPP) 379.5 million 3 Trillion
Overall Score 74.0 65.1
(www3.weforum.org.2020)