Strategic Direction for Lidl's Growth in Thailand

Strategic direction for
Lidl's growth in
Thailand

EXECUTIVE SUMMARY
Strategic management is an important part of the organisation for expanding it's market
share an profit. Before entering into foreign markets, it is essential for companies to conduct
internal as well as external analysis. In this report, there is discussion on impact of external and
internal factors on Lidl organisation.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION ..........................................................................................................................4
Background of the company ......................................................................................................4
key challenges faced by the company ........................................................................................4
External environmental analysis ................................................................................................5
PESTEL analysis ........................................................................................................................5
Porters Five Forces Model .........................................................................................................7
Internal environmental analysis ...............................................................................................10
VRIO analysis ..........................................................................................................................10
Identification of competitive strategies ....................................................................................11
Porter's Generic strategies ........................................................................................................11
Methods of expansion ..............................................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Strategic management is defined as the planning, analysis, monitoring and assessing
necessary requirements of meeting organisational goals and objectives. The various change in
business environment needs to assess strategies for the organisation for achieving success. The
strategic management is helpful in analysing stock of present situation and develop strategies for
analysing the implemented strategies. The present report is based on Lidl organisation. This is a
German global discount supermarket chain that is located in Neckarsulm, Germany. This is
operating in around 10,000 stores across United states and Europe. This company is deciding to
expand it's market share and start business in Thailand. For doing successful business, it is
important for this company to evaluate the internal as well as external factors that affects
business.
Background of the company
Lidl is a German global discount supermarket chain that is based in Neckarsulm,
Germany. IT is operates approximately 10,000 stores across United States and Europe. This
company belongs to Dieter Shwarz who is the owner of store chains Handelshof and
hypermarket Kaufland. This is competitors of various other supermarket chains like Aldi. This
company was started by Josef Schwarz in the year 1930. he decided to offer attractive discounts
to people in food wholesaler ((Ansoff, 2018)). Lidl is the fifth largest retailer of the world and it
earns approximately $82.4 billion. The distribution centres of this company are situated in
Mebane, North Carolina, and Spotsylvania, Virginia. This company is having zero waste
approach of displaying products in delivery cartons. This supermarket focuses on marketing and
public relations and providing employee benefit.
key challenges faced by the company
There are various challenges that this company has to face while entering into other
countries. In context of this case, Lidl wants to expand it's market in Thailand. It has to face
various challenges while establishing good position in this Asian market. Some of these are
listed below -
Unfamiliar cultures – The most important thing that affects functioning and operations
of a company in other country is culture difference. Lidl must ensure that it is adopting right way