Lidl (https://www.lidl.com/) is a German global discount supermarket chain operating across some 30 countries globally. The company is looking to further expand internationally.
Using Lidl as a case company, produce a report that addresses the 5 following tasks:
Evaluate the following 2 countries to identify which represents the most potentially attractive target market for Lidl’s future international expansion strategy:
In order to evaluate which of these 2 countries represents the most potentially attractive target market, you are required to undertake a comparative PESTEL analysis of those macro-environmental factors of the 2 countries that are relevant to Lidl.
Please Use Appendix 1 for the information. Writer may include also corruption level, inflation rates, corporate taxation, education level, % of population living under poverty line, or easiness of doing business
Discuss the rationale for the selection of your chosen market. Your rationale should be justified with a more detailed discussion of your PESTEL analysis of the macro-environmental factors of your chosen market that you have presented in the appendix for Task 1. This discussion should explicitly consider the implications of the macro-environmental factors of your chosen market for Lidl.
• This task must be presented in the first section of the main body of your report.
Apply the 5-Forces model to critically analyse the competitive intensity of the industrial environment of Lidl in your chosen market. A SWOT analysis is not acceptable.
• This task must be presented in the second section of the main body of your report.
Analyse the firm’s internal environment in order to EITHER:
i) critically evaluate the resources and capabilities of Lidl and the competitive implications of these for the company when entering into your chosen market (this will require an application of the VRIO framework)
ii) identify Lidl’s internal value-adding activities and critically evaluate which of these will be most relevant in supporting the company to enter into your chosen market (this will require an application of the Value Chain model).
A SWOT analysis for either option is not acceptable.
• This task must be presented in the third section of the main body of your report.
Critically evaluate the various modes of entry available to Lidl and recommend – with justification based on the findings of your analyses in Tasks 2, 3 & 4 above – the most suitable mode of entry that will enable this strategic international expansion to be a success for the company
• This task must be presented in the fourth and final section of the main body of your report.