This work provides an exemplified analysis of a company’s internationalisation. The chosen example is a possible implementation of LIDL discount supermarkets in Sweden. The analysis encompasses an investigation of the external environment (PEST), a risk assessment and a consideration of market entry strategies. Furthermore it adds an identification of implications for the marketing mix and implications for organisational resources and management.
Table of Contents
- 1. Introduction
- 2. Situation
- 3. Analysis of the PEST environment
- 3.1. Political influences
- 3.2. Economic influences
- 3.3. Social influences
- 3.4. Technological influences
- 3.5. Summary
- 4. Risk assessment
- 4.1. BERI
- 4.2. The market options matrix (Ansoff matrix)
- 4.3. The Litvak Banting model
- 4.4. The Sheth Lutz model
- 5. International market research requirements
- 6. Market entry plan
- 6.1. Corporate and marketing objectives
- 6.2. Target group
- 6.3. The variety of market entry strategies
- 6.4.
- 7. Choice of market entry strategy
- 7. Operational plan
- 7.1. Implications for the marketing mix
- 7.1.1. Product policy
- 7.1.2. Pricing strategy
- 7.1.3. Promotion policy
- 7.1.4. Distribution and logistics
- 7.2. Management implications
- 7.3. Control and Budget
Objectives and Key Themes
This work analyzes the potential internationalization of Lidl, a German discount food retailer, into the Swedish market. The analysis examines the external environment, assesses risks, and considers various market entry strategies. It also explores the implications for the marketing mix and organizational resources.
- Analysis of the Swedish market environment (PEST analysis)
- Assessment of market entry risks
- Evaluation of various market entry strategies
- Implications for Lidl's marketing mix
- Organizational and management implications of market entry
Chapter Summaries
1. Introduction: This chapter introduces the study's purpose, which is to provide a detailed analysis of Lidl's potential market entry into Sweden. It outlines the scope of the analysis, including the examination of the external environment, risk assessment, and market entry strategies, along with the implications for marketing and management. The chapter sets the stage for the comprehensive investigation that follows.
2. Situation: This chapter establishes the context by describing Lidl, a major German discount food retailer, and its current market presence in Europe. It highlights Lidl's strategic focus on offering low prices through efficient operations and a no-frills product approach. The chapter introduces Sweden as the target market, describing it as an advanced economy with characteristics relevant to Lidl's business model. It provides the foundational information needed to understand the feasibility of Lidl's expansion into the Swedish market. The chapter emphasizes Lidl's position as a cost-leader and its strategy of central purchasing and efficient store management.
3. Analysis of the PEST environment: This chapter conducts a PEST (Political, Economic, Social, and Technological) analysis of the Swedish market. The political analysis examines the influence of EU legislation and Sweden's political stability. The economic analysis focuses on Sweden's high GDP per capita, stable prices, and low interest rates. The social analysis explores Sweden as a low-context culture, highlighting implications for marketing communications. The technological analysis emphasizes Sweden's well-developed infrastructure, facilitating efficient supply chains. The chapter concludes by summarizing the overall favorable external environment for Lidl's potential entry.
Keywords
Lidl, international marketing, market entry strategy, Sweden, discount supermarket, PEST analysis, risk assessment, marketing mix, market research, economic environment, social culture, competitive advantage, cost leadership.
Lidl's Potential Market Entry into Sweden: FAQ
What is the main topic of this document?
This document provides a comprehensive analysis of Lidl's potential internationalization into the Swedish market. It covers various aspects, including market environment analysis, risk assessment, market entry strategies, marketing mix implications, and organizational considerations.
What are the key themes explored in the analysis?
The key themes include a PEST analysis of the Swedish market, assessment of market entry risks using various models (BERI, Ansoff Matrix, Litvak Banting, Sheth Lutz), evaluation of different market entry strategies, implications for Lidl's marketing mix (product, pricing, promotion, distribution), and the organizational and management implications of entering the Swedish market.
What is a PEST analysis, and how is it used in this document?
A PEST analysis examines the Political, Economic, Social, and Technological factors influencing a market. This document uses a PEST analysis to assess the suitability of the Swedish market for Lidl, considering factors such as EU legislation, Sweden's economic stability, social culture, and technological infrastructure.
Which market entry risk assessment models are discussed?
The document discusses several market entry risk assessment models, including the BERI (Business Environment Risk Index), the Ansoff Matrix (market options matrix), the Litvak Banting model, and the Sheth Lutz model. These models help evaluate the potential risks and opportunities associated with entering the Swedish market.
What market entry strategies are considered for Lidl in Sweden?
The document explores various market entry strategies, although the specific strategies are not detailed in the preview provided. The analysis evaluates the suitability of different strategies based on the PEST analysis and risk assessments.
How does the analysis address the marketing mix implications for Lidl in Sweden?
The analysis examines the implications for Lidl's marketing mix, which includes product policy, pricing strategy, promotion policy, and distribution and logistics. It considers how Lidl's existing strategies would need to be adapted to the Swedish market.
What are the organizational and management implications discussed?
The document considers the organizational and management implications of Lidl's potential market entry into Sweden. This includes the resources and adjustments needed for successful market penetration.
What is the overall conclusion suggested by the preview of the document?
The preview suggests that a thorough analysis of Lidl’s potential entry into the Swedish market is undertaken, examining the external environment, risks, and various entry strategies. The overall feasibility is not explicitly stated, but the structured approach suggests a comprehensive evaluation will be presented in the full document.
What are the key chapters included in the document?
The document includes chapters on Introduction, Situation, PEST analysis, Risk Assessment, International Market Research Requirements, Market Entry Plan, Choice of Market Entry Strategy, and Operational Plan (covering marketing mix, management implications, and control/budget).
What are the keywords associated with this analysis?
Keywords include Lidl, international marketing, market entry strategy, Sweden, discount supermarket, PEST analysis, risk assessment, marketing mix, market research, economic environment, social culture, competitive advantage, and cost leadership.
- Citation du texte
- Hauke Barschel (Auteur), 2004, LIDL's implementation of discount supermarkets in Sweden, Munich, GRIN Verlag, https://www.grin.com/document/28001
