...Analysis of Lidl’s business strategies Name Institution Analysis of Lidl’s Business Strategies Lidl Stiftung & Co is an international discount supermarket that is located in Germany. The company was founded in the early 1940s by one member of the Schwarz family. The company has been operating in most parts of Europe, giving the other competing firms a very tough ground for retail business. Currently, the company has over 10,000 stores, most of which are in the UK. The company is the fifth best retailer in the world with a net income of $82.4 billion (Lidl, 2011). Apart from being active in the retail business, the company also carries out a number of services such as DVD rental, which was launched in 2009 and bakery services launched in 2012. According to Sillince (2006), resource based view in competitive advantage can help Lidl in achieving competitive advantage by looking at the internal factors that are within its system. For instance, the company has used its employees in ensuring that it achieves most of its goals within the shortest time possible. In addition, the company has achieved greater competitive advantage that has led to increase in the amount of profits and market share by internal tangible and intangible factors such as products and values respectively.In addition, the company uses heterogeneous and immobile resource-based views to ensure the achievement of the most effective competitive advantage in the market. Discourse and disruption have also...
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...The Strategic Evaluation of Lidl’s within the UK Market. Submission Date: 26 January 2014 Contents Introduction 3 1. Analysis of the competition faced by Lidl within the UK food retail industry 4 2. The Strategic position of Lidl 5 2.1 Porter’s Generic Strategies 5 2.2 Bowman’s Strategic Clock 6 3. An analysis of the external business environment and how it affects Lidl 7 3.1 PEST Analysis 7 3.1.1 Political 8 3.1.2 Economic 8 3.1.3 Social 8 3.1.4 Technological 8 3.2 Porter’s Five forces Model 9 3.2.1 Threat of New Entrants 10 3.2.2 Threat of Substitutes 10 3.2.3 Bargaining Power of Suppliers 10 3.2.4 Bargaining Power of Buyers 10 3.2.5 Competitive Rivalry within the Industry 10 4. How Lidl adds value to its strategic position 11 5. The sustainability of Lidl’s strategic position 13 6. Conclusion 13 7. Bibliography 14 Introduction The purpose of this report is to carry out a strategic evaluation of the hard discount food retailer Lidl. It will cover the following key items • An analysis of the competition within the food retail industry and the strategic position of Lidl; • An analysis of the external business environment and how it affects Lidl; • An analysis of how Lidl adds value to its strategic position; This will allow for a discussion of how sustainable Lidl’s strategic position is and conclude where Lidl is likely to progress within the UK grocery sector. Research from on-line literature, books and journals...
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...The Product Lidl Tower Gate Bourbon Cream biscuits are a household dry goods product; a desired type of biscuit amongst many individuals. Marketing Mix People Within the Lidl’s marketing mix ‘people’ are directly linked to the business and target markets, extensive research can uncover if there are enough individuals whom hold a demand for particular services and products. Hence why Lidl ensure their employees are effectively trained to their deliver products and services, it is a critical part within marketing by means of customer services, support desk, programmers and so forth. By ensuring their employees hold a passion and confidence in the brand Lidl are able to run more efficiently as they will perform to the best of their abilities with more chance of providing candid feedback being their own input concerning business growth. Process Processes and systems within Lidl can affect services and or products administration so ensuring there is a bespoken process in place minimises costs. Various procedures such as distribution, sales and pay system steps ensure Lidl are running effectively, although there will be possible enhancements required down the line to maximise costs and profits. By ensuring that all processes are straight forward and easy to use is a vital element of Lidl’s marketing mix. Physical evidence Physical evidence within Lidl provides a viewpoint on products/services perception whilst indicating whether the deliverance has been effective. For...
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... 1. Introduction 3 2. Situational Analysis 4 2.1 PEST Analysis 2.2 SWOT Analysis 2.3 Current IMC Analysis 2.4 Competitors Analysis 3. Marketing Strategies 9 3.1 Marketing strategies 3.2 Target Market 3.3 Campaign Objectives 4. Campaign 11 5.1 Theme, Message and Brand Values 5.2 Promotional Tools 5.3 Campaign Budget 5.4 Schedule 5.5 Evaluation 5. Appendices 17 6. References 23 1. Introduction Lidl was founded in Germany as a grocery wholesaler in 1930. Its first shop in the UK opened in1994 and has grown to over 500 shops. This report outlines Lidl’s Integrated Marketing Communications (IMC) plan to raise brand awareness, customer satisfaction and to increase the company’s market share. It is also the start for a new era by introducing an online shopping service which is absolutely crucial to stay competitive in the UK’s grocery industry. Furthermore, by extending Lidl’s Deluxe range the company is responding to the shift in buyer behaviour where more and more middle income shoppers are going to Discounter because of the current economical situation. This report is divided to three parts. The first part shows the PEST, SWOT, Competitors analysis and an overview of Lidl’s current IMC strategy which reflect the company’s current situation. In the second part, this paper outlines the marketing strategies and the...
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...the past decades, grocery discounters such as Aldi and Lidl have strengthened their position in the grocery retailing industry – especially in Germany and Europe. With their no-frills approach, they have led to significant changes in the industry and have challenged many companies which operate other store formats,’ such as supermarkets or hypermarkets. In this context, a Financial Times report on international retailing noted in 1995: ‘The spread of the discount format has been particularly disruptive to Europe’s grocery retail industry and has driven retailers to examine cross-border markets’. The Grocery Discount Format The key terms describing a grocery discounter are ‘minimalism’ and ‘efficiency’, which are integrated into all business areas. In fact, grocery discounters’ ambitions are to sell quality products at the lowest price possible. To realise profits in spite of the low prices, grocery discounters reduce their costs to a minimum and attempt to generate high volumes of sales through a limited product range of fastmoving items. The approach of cost reduction especially affects the spending for store design, customer service and advertising: grocery discounters try to save money by building up their stores in suburban areas and remote districts, where the rental fees or purchase prices for properties and buildings are low. Furthermore, all companies have a basic outlet format similar to that of a warehouse, with...
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...Student Name : Victor Belinschi Student Number: 10022233 Course Title: MBA in Business Management Lecturer Name: Dr. PJ Paul Module/Subject Title: International Management Assignment Title: PESTEL Analysis Nr. of Words: 3231 (Excluding References) I have chosen to write a PESTEL analysis for LIDL (the food retailer from Europe) in the context of a potential expansion to Moldova, my home country. This particular industry was chosen because there are no major food retailers in our country besides the Metro Cash & Carry. Therefore, our market is relatively young and with potential to grow. Political Factor The Republic of Moldova is a relatively young country as it gained its independence in 1990 when the USSR had collapsed. From that year on, the Moldavian people have struggled to install democracy. Until 2000 Moldova has been governed by democratic forces and has already achieved some progress in installing a fair and efficient legal system. Unfortunately for many persons, the elections of 2000 have identified the Communist party as the winner. The Communists have governed the country until 2008 when they have lost the elections in favour of the three democratic parties: Liber Party, Liberal-Democratic Party and the Democratic Party. However, the disparity of votes between the opposition and the winning forces was relatively insignificant and in order to have a consolidated majority in the Parliament and to be able to efficiently adopt legislation, the...
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...IES184 P-1071-E 0-606-009 Aldi: A German Retailing Icon “The next Wal-Mart?” Cover story on Aldi, Business Week, April 26th, 2004 “I love my Aldi – good quality at rock-bottom prices. Why do I need ‘brands’ when all they do is rip you off?” Long-time Aldi customer, driving a BMW “Discount means to leave away everything that is unnecessary.” Dieter Brandes, former Aldi executive Introduction In 2005, Aldi, a German-based grocery store chain, was turning heads throughout Europe, Australia and the United States with its rock-bottom prices, efficient store operations and growing global network of limited assortment stores. Founded in the German town of Essen, with antecedents dating back to 1946, Aldi had revenues of €37 billion ($44 billion US)1, This case was prepared by Jordan Mitchel, Research Assistant, under the supervision of Professor Marc Sachon, as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. October 2005. This case was written with the support of the CIIL (International Center for Logistics Research), IESE. Copyright © 2005, IESE. To order copies or request permission to reproduce materials, call IESE PUBLISHING 34 932 534 200, send a fax to 34 932 534 343, or write Juan de Alós, 43 - 08034 Barcelona, Spain, or iesep@iesep.com No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or...
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...company Tesco PLC that is UK’s leading grocery store. The aim of this report is to develop a three-year marketing strategy plan and a one-year tactical communication plan for Tesco. Tesco at some stage has faced difficulty hence by exploring the brand and critically analyzing its marketing strategy, I will then develop a strategy that would turn Tesco’s fortune around. 1.1. Methodology Market research for the brand has been conducted through secondary research by visiting academic websites such as Mintel, Database reports,LexisNexis Database, Business reports, Articles, Blogs and News online. 1.2. History Tesco PLC is a multinational grocery and general merchandise retailer headquartered in Cheshunt, Hertfordshire, England, United Kingdom. It is the third largest retailer in the world measured by profits and second-largest retailer in the world measured by revenues. It has stores in 12 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), the Republic of Ireland, Malaysia, and Thailand. Jack Cohen founded Tesco in 1919 as a group of market stalls. The Tesco name first appeared in 1924, after Cohen purchased a shipment of tea from T. E. Stockwell and combined those initials with the first two letters of his surname, and the first Tesco store opened in 1929 in Burnt Oak, Middlesex. His business expanded rapidly, and by 1939 he had over 100 Tesco stores across the country. (TESCO PLC, 2015) 2.BRAND audit ...
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