Importance of Strategic Management in Expanding Market: A Case Study of Lidl in Thailand

Strategic management

EXECUTIVE SUMMARY
This report discusses importance of strategic management. Companies are developing
effective and strong strategies in order to achieve their organisational goals. Before entering into
foreign markets, companies have to analyse markets effectively. This is done by using various
models and approaches. The present scenario talks about a company Lidl which is going to
expand it's market in any market of Asia. There are different methods of expansion discussed by
which companies can enhance their business. This assignment includes PESTLE analysis and
other macro factors that affect business organisations. It also includes Porter's five forces,
Bowman's clock strategies and VRIO model.

Table of Contents
INTRODUCTION ..........................................................................................................................4
PESTEL analysis of Lidl ............................................................................................................5
PESTLE Analysis........................................................................................................................5
Porter's Five forces model ..........................................................................................................7
VRIO model ...............................................................................................................................9
Bowman's Clock strategies ......................................................................................................11
Methods of expansion ..............................................................................................................13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
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Strategic management is determined on clear understanding of an organisation's mission,
vision and purpose of existence. This provides understanding about vision and future of the
company and values which are guiding to be in future. This needs commitment to strategic
planning, subset of management of business which includes ability for managing long term and
short term goals of the company. This is helpful in planning strategic decisions, resource
allocation and planning. Strategies developed in organisations help in making logical decisions
and new objectives for keeping pace with technology and market conditions. The present report
is based on Lidl organisation. This is a German global discount supermarket chain that is based
in Germany. This company belongs to Dieter Schwartz who is owning store chains Handelshof
and hypermarket Kaufland. The present report is based on expansion if this company in market
of Thailand.
Company and industry background
The history of Lidl started in the year 1930. the first srore of this company was opened in
Germany and this was working as grocery wholesaler. But after this, now this has become the
largest grocery retailer of Europe. It has around 600 stores in UK and others are based in Europe.
The number of stores which Lidl operates are staggering (Ansoff, and et. al., 2018). This
company expanded around 20 years ago. This expansion helped it to be one of the most feared
and dominant competitors of UK grocery market. Market share of this company in UK is
relatively small. The share of this company across the world has raised at high rate.
Key challenges faced by this company
There are various challenges faced by organisations when they are planning to establish
business in foreign countries. In context of Lidl organisation, they are expanding their business
in Thailand market. For doing so they must have strong strategies otherwise they will fail to
attract customers towards their service. Some of these are mentioned below - Cultural difference – When employees working in the company have different culture. It
is responsibility of the organisation to adopt culture of country in which it is operating.