...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...
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...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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...Aldi and Sainsbury Grocery store is a shop which the main product sold primarily food HISTORY OF GROCERY SOTRES . They hold an extremely significant value in consumer lifestyle. This essay will compare strengths and weaknesses between Aldi and Sainsbury. Aldi Aldi is a private company which was founded in Essen, Germany 1946 by Karl and Theo Albrecht. Aldi is now a leading worldwide discount supermarket chain with more than 8,500 stores in more than 15 countries. After several years, the owners separated Aldi into Aldi Nord, which operates shops in the north of Germany, and Aldi Sud, which operate the south and the UK. Karl took the Aldi Sud (South), and his brother Theo took the Nord (North) (Rudolph, 2011). Moreover, in times of economic depression were consumers are caring more about the price. Aldi to took advantage of the depression with it being one of the leading supermarkets that offer discounts and lower prices than the main stream supermarkets. This strategy also known as razor strategy was very effective in the UK because when the economic depression hit Europe people felt the need to save and cut down expenses and restore to cheaper options. Aldi before depression. this below shows the number of the shops for people who want to save money for food for , which allows them to offer the best quality products at low prices (Haberer, 2008). According to Mirror Magazine “Aldi won the award of supermarket of the year, and this award for second year in a raw...
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...Introduction The purpose of this briefing paper is to analyse the data given from the case study to determine the impact and consequences global forces have, by using the PESTEL framework. This framework is used to help form a strategic analysis of the macro-environment; the outside factors beyond the control of a company. It categorises the environmental influences into six groups: political, economical, socio-cultural, technological, environmental and legal; making up the acronym PESTEL. Analysis Political factors Europe has traditionally been seen as the centre of the beer brewing industry. However, the level of alcohol consumption is gradually declining. This is because many of the key markets within Europe are increasingly more aware of the social and health issues caused by excessive alcohol consumption. Governments are actively campaigning against the abuse of alcohol and the possible consequences of drunk driving, ‘binge drinking’, and the long-term effects related to health. These key factors relate directly to government policies and their decisions towards the European beer market. Economic factors As a result of government intervention, there has been a marked decrease in product sales in public premises. As people are more and more likely to drink at home rather than out to bars, the alcohol sales has shifted from ‘on-trade’, where beer is consumed on public premises, to ‘off-trade’, where beer is purchased by retail and consumed on private property...
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...GLOBAL FORCES AND THE WESTERN EUROPEAN BREWING INDUSTRY DATE OF SUBMISSION: 09/02/2012 1. (i) PESTEL ANALYSIS OF THE WESTERN EUROPEAN BREWING INDUSTRY The PESTEL framework provides a comprehensive list of influences on the possible success or failure of particular strategies (Johnson et al, 2008, p55). PESTEL stands for Political, Social, Technological, Environmental and Legal. Political- Governments in Europe were campaigning strongly against drunken driving. This affected the propensity to drink beer in pubs and restaurants. Economic- Some low consumption European markets have been showing good growth. Pubs have suffered as a result of large supermarket chains such as Tesco and Carrefour who often use cut price on beer to lure people into their shops. The result was that an average of about 50 pubs closed per week during the recessionary year 2009. Social- There was increasing awareness of the effects of alcohol on health particularly in the UK. This led to a growing hostility to excessive alcohol consumption in pubs. Beer consumption in the UK as well as in Germany began to fall as a result of this. Wines were becoming increasingly popular as Europe was turning off beer. There was an increasing demand for Exotic imported beer more especially in Belgium, Denmark, Finland and the Netherlands according to Table 2 of the case study. (ii) FIVE FORCES ANALYSIS OF THE WESTERN EUROPEAN BREWING INDUSTRY According to Johnson et al (2008), Porter’s...
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...Strategic Analysis of ALDI Table of Contents 1. Introduction 2 2. Brief Background on Aldi 3 3. Market Identification of Aldi 4 4. Environmental Analysis 5 4.1 PESTEL Analysis 6 4.1.1 Political factors 6 4.1.2 Economical factors 6 4.1.3 Social and cultural factors 7 4.1.4 Technology factors 8 4.1.5 Environmental Factors 8 4.1.6 Legal factors 9 4.2 Key Trends affecting the industry 9 5. SWOT Analysis 10 5.1 Strengths 10 5.2 Weaknesses 11 5.2 SWOT Table 12 6. Identification and evaluation of the Strategies pursued by Aldi 13 6.1 Strategies implemented by ALDI 13 6.2 Critical Evaluation of the Strategies 14 7. Conclusion 16 8. References 16 1. Introduction Albrecht Discount Inc., globally known as Aldi, is a German based family owned global discount chain of supermarkets. Aldi constitutes of two independent groups, that are Aldi Nord (North) and Aldi Sud (South) legally and economically independent but family related (Aldi Sud Business, 2013). It is the market leader in the industry of international grocery retailing and owns and operates chain of discount grocery stores in Europe, Australia and United States. It’s stores retail and supply general merchandise and food including meat products, fresh meat, frozen and refrigerated foods, sweets and snacks, dairy and bakery products, beverages and pantry items in addition to home care and personal care products (Report Linker, 2013). In the present Aldi Inc.’s strategic...
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...Business Strategy Module Lecturer Kashif Ali Prepared by M. Sohail Malik Index Introduction ................................................................... 1 Business Environment Analysis ................................. 2 A) Tesco Micro Environment (PESTEL Analysis) ..... 3 B) Tesco Macro Environment (Five forces Analysis) . 6 3. Impact of Globalisation ............................................ 8 A) Opportunities ...................................................... 9 B) Benefits ................................................................ 9 C) Challenges ............................................................. 10 4. Conclusion ................................................................. 11 Introduction: The world has developed ever more intricate, resulting from the greater interdependence among world economies (Thompson, 2002) and the success of organisations is largely determined on how well the organisation adjusts all its tangible and intangible properties to keep itself on track of its surrounding or business environment (Armenakes & Bedeian, 1999). As a market analyst, the organisation undertaken to analyse business environment is Tesco Plc. Tesco Plc is a British global grocery and all-purpose merchandise retailer founded in 1919 by Jack Cohen. It is the 3rd largest retailer in the world and operates in more than 14 countries across Asia, Europe and North...
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...Wrights of Howth BABS III Stephan Schibalsky Illustration 1 : Wrights of Howth Logo Illustration 1 : The Wrights of Howth…………………………………….....1 Illustration 2 : PESTEL……………..……………………………………......4 Illustration 3 : Marketing Mix.…….………..………………….…….............7 II Table of Content 1. Introduction……………………………………………………………………………….............1 1.1 Purpose of the document……………………………………………………………...1 2. Market Selection.................................................................................................................2 2.1 The European Salmon Market..............................................................................2 2.1.1 Germany……………………………………………………………………...2 2.1.2 France………………………………………………………………………...2 2.1.3 Spain …………………………………………………...….………………....2 2.1.4 Conclusion…………………………………………………………………....3 3. Identification of international marketing issues faced by the firm……………………….......4 3.1 PESTEL………………………………………………………………………………….4 3.1.1 Political…………………….......................................................................5 3.1.2 Economi……………………………………………………………………….5 3.1.3 Social…...................................................................................................5 3.1.4 Legal………………………………….........................................................5 3.1.5 Conclusion…………………………………………………………………….6 4. International Marketing Mix……………………………………………………………………....7 4.1 Product.................................................................................
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...they operate, and the competitive environment. Marketing is a coordinated process, which makes the best use of available resources to present a product proposition to a target market in order to attain objectives, and then evaluating how successfully this has been done. According to Malcolm McDonald, it is the management process, which identifies, anticipates and supplies customer requirements. According to Quinn (1980) ‘Strategy is the pattern or plan that integrates an organization’s major goals, policies and action (s)...into a cohesive whole’ The business model used to assess the marketing strategies and …is Tesco, Which is one of the largest `retailers in the world. Strategic evaluation tools such as PESTEL, Porter’s Five Forces, and SWOT and value chain analysis have been used by researchers to achieve this aim. Company overview Tesco is among the largest food retailers in the world with revenue in excess of £54 billion in 2009 and employing over 530,000 people. They operate approximately 6,784 stores in 12 countries around the world. The company operates primarily in the USA, Europe and Asia and their Head Office is based in Hertfordshire, UK. According to Data monitor (2012), the commercial network portfolio of Tesco comprises: over 1,547 Express stores which sell approximately 7,000 products including fresh foods at suitable localities; 192 Metro stores which sell a variety of food products in town and city centres; and 481 superstores which sell both food and non-food...
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...Question 1 (i): Using the data from the case (and any other source available), carry out for the European brewing industry a PESTEL analysis. What do you conclude? Beer has been a part of the social fabric of cultures around the world for thousands of years. Even today beer ranks as the third most popular beverage in the world next to water and tea. Considered one of the oldest drinks, the origin of beer dates back to 6000 B.C. With low-cost strategies and lack of marketing and product innovations all created a very stable situation guaranteeing high returns on investments for most breweries in Europe. However, this situation has been changing dramatically and the industry has witnessed different brewing styles over the last decade. The market entry of large multinational breweries resulted in shrinking demand due to changing consumer preferences, the emergence of more aggressive competitive strategies and rapid changes in important distribution channels have created growing competitive pressures for European breweries. An industry that was used to stability must now find its way in an increasingly turbulent market environment. First of all, I need to evaluate the macro environment of the industry. The most suitable tool to analyze the broad macro-environment is the PESTEL analysis. In the PESTEL analysis environmental influences are categorized into political, economical, social, technological, environmental/ecological and legal aspects. It helps to identify how future trends...
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...Analysis of Tesco’s Marketing Strategies Name: University: Course: Instructor: Date: Table of Contents 1.0 SUMMARY 3 2.0 INTRODUCTION 4 2.1 BACKGROUND 4 3.0 CURRENT SITUATION 5 3.1 PESTEL ANALYSIS 5 3.1.1 Political 6 3.1.2 Economic 6 3.1.3 Social 6 3.1.4 Technological 7 3.1.5 Environmental 7 3.1.6 Legal 8 3.2 SWOT ANALYSIS 9 3.3 DIFFERENTIAL ANALYSIS/COMPARATIVE ADVANTAGE – USP 9 4.0 RECOMMENDATIONS 9 4.1 SEGMENTATION TARGETING AND POSITIONING (STP) 9 4.1.1 Segmentation 9 4.1.2 Targeting 10 4.1.3 Positioning 10 6.2 MARKETING OBJECTIVES AND GOALS (SMART) 11 4.3 MARKETING MIX (4P’S) 12 4.3.1 Product 12 4.3.2 Price 13 4.1.3 Promotion 13 4.1.4 Place 14 6.0 References 16 7.0 Appendices 19 7.1 Appendix 1: Tesco Market Share versus Competition 19 1.0 SUMMARY Tesco is one of the most successful food and grocery retailers in the world. According to (Tesco 2012b), Tesco’s success is seen in its growth over the years. The company’s growth is projected from its core operations in UK into the other continents. Tesco had established its subsidiaries in 14 countries by the year 2010, (Tesco, 2012b). Currently, Tesco is the market leader in Europe, with approximately 30% market share. Tesco attributes this success to its marketing strategies. The Company has market its brands in a way that is customer personalized. Customer personalization has been arrived at by doing researching on market needs and expectations. An example...
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...Allan [pic] Word Count: 3990 Contents Page Introduction 2 Waitrose Overview 2 Resources and Competences 3 Porter’s Five Forces Analysis 5 Level of Competition 5 Threats of Substitutes 6 Threat of Entrants 7 Bargaining Power of Buyers 8 Bargaining Power of Suppliers 8 SWOT Analysis 9 Waitrose Supply Chain 10 Waitrose Value Chain 11 Primary Value Chain Activities 12 Inbound logistics 12 Operations 13 Outbound Logistics 13 Marketing and Sales 13 Services 13 Support Value Chain Activities 14 Procurement 14 Technology Development 14 Human Resource Management 14 Firm Infrastructure 14 Conclusion 14 Bibliography 16 Appendix A 18 Appendix B 19 Appendix C 20 Appendix D 21 Appendix E 22 Introduction As a continuation of the analysis provided in Coursework 1 on the Stamford Waitrose Branch and the Waitrose Company, using PEST(EL) analysis, on the external influences that affect its business. The analysis in this paper focuses on how the branch and Waitrose as company employs Supply Chain Management, Porter’s Value Chain and Porter’s Five Forces business process models to contribute to their position within the highly...
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...SWOT, PESTEL, Porter's Five Forces and Value Chain Analysis of Tesco Introduction This report is aimed at critically analyzing the macro, meso and micro business environment of Tesco, one of the largest food and grocery retailers in the world, operating around 4,331 stores. Strategic evaluation tools such as PESTEL, Porter’s Five Forces, SWOT and Value Chain analysis have been used by researchers in order to achieve this aim. Tesco – Company Overview Tesco is among the largest food retailers in the world with revenue in excess of £54 billion in 2009 and employing over 470,000 people. They operate approximately 4,331 stores in 14 countries around the world. The company operates primarily in the USA, Europe and Asia and their Head Office is based in Hertfordshire, UK. According to Datamonitor (2010), the commercial network portfolio of Tesco comprises : over 960 Express stores which sell approximately 7,000 products including fresh foods at suitable localities ; 170 Metro stores which sell a variety of food products in town and city centres; and 450 superstores which sell both food and non-food items including books and DVDs. Tesco also provides online retailing services through their website tesco.com and Tesco Direct . In addition, they provide broadband I nternet connections and financial services through Tesco Personal Finance (TPF). Tesco was founded in 1919 and launched its first store in Edgware, London, UK in 1929 (Tesco, 2010); however, over the decades it has evolved...
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...Supermarket Industry Porters 5 Force’s Porter (1980) illustrates in this analytical tool 5 variables that determine the attractiveness of an industry for organisations in terms of profitability in their immediate environment. Using the forces in this model we can analyse how attractive the UK Supermarket industry is to enter, the 5 forces are as follows. The threat of potential new entrants Barriers to entry in the UK supermarket industry relies on the entrants capability of matching capital requirements of existing firms, the UK supermarket industry is dominated by firms known as Tesco, Asda, Sainsbury’s and Morrison’s (Big 4) owing up to 69% of market share in the UK. Looking at the experience curve (1960: Boston Consultancy Group) A new entrant would have to achieve the economies of scale needed to achieve cost parity with the big 4 and compete on cost advantage. In the supermarket industry achieving economies of scale is not on production but other factors such as efficiency, pricing, range of goods and value of products. Tesco for example have very low cost margins in comparison to the scale of their operations and distribution channels but they are able to achieve high sales because the convenience, range of products and different services they offer. Product differentiation is another barrier to entry, a new entrant would need to achieve and individual level of differentiation and attain an identity through promotions and costly advertising, total advertising...
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...ntroduction This report is aimed at critically analysing the macro, meso and micro business environment of Tesco, one of the largest food and grocery retailers in the world, operating around 4,331 stores. Strategic evaluation tools such as PESTEL, Porter’s Five Forces, SWOT and Value Chain analysis have been used by researchers in order to achieve this aim. Tesco – Company Overview Tesco is among the largest food retailers in the world with revenue in excess of £54 billion in 2009 and employing over 470,000 people . They operate approximately 4,331 stores in 14 countries around the world. The company operates primarily in the USA, Europe and Asia and their Head Office is based in Hertfordshire, UK. According to Datamonitor (2010), the commercial network portfolio of Tesco comprises : over 960 Express stores which sell approximately 7,000 products including fresh foods at suitable localities ; 170 Metro stores which sell a variety of food products in town and city centres; and 450 superstores which sell both food and non-food items including books and DVDs. Tesco also provides online retailing services through their website tesco.com and Tesco Direct . In addition, they provide broadband I nternet connections and financial services through Tesco Personal Finance (TPF). Tesco was founded in 1919 and launched its first store in Edgware, London, UK in 1929 (Tesco, 2010); however, over the decades it has evolved to become the market leader within the UK food retail segment (Datamonitor...
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