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 will be utilised for the purpose of the report.

Lidl’s history dates back to 1930 when it emerged as a grocery wholesaler in Germany. The first Lidl stores were opened in 1973 and since have seen for nominal growth over the years. They now form the largest division within the Schwarz Group. It arrived in the UK back in 1994 and now boasts a store count of more than 600 stores throughout