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 (see also Table 1)
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 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
Research Objectives and Core Themes
This paper examines the feasibility and strategic implementation of LIDL's market entry into the Swedish retail sector, focusing on how a German discount model can be adapted to an advanced Scandinavian economy.
- Analysis of the PEST environment in Sweden as a basis for strategic planning.
- Assessment of operational and country-specific risks using established business frameworks.
- Development of a comprehensive market entry strategy leveraging full ownership.
- Evaluation of operational requirements, including product policy, pricing, and logistical infrastructure.
Excerpt from the Book
1. Introduction
The following work provides an exemplified analysis of a company’s internationalisation. 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.
2. Situation
This work examines the possible market entry of the German discount food retailer LIDL in Sweden. Sweden is an advanced economy. LIDL is an expanding food retailer which is at present operating in many European countries, but not in Sweden so far (www.lidl.de). It offers mostly fast moving consumer goods, food and non-food products.
Summary of Chapters
1. Introduction: Presents the scope of the study, which covers PEST analysis, risk assessment, and marketing strategies for international expansion.
2. Situation: Provides an overview of the Swedish economy and LIDL's current business model as a discount retailer.
3. Analysis of the PEST environment (see also Table 1): Evaluates political, economic, social, and technological factors in Sweden to determine market viability.
4. Risk assessment: Utilizes various models like BERI and the Ansoff matrix to quantify the potential risks of entering the Swedish market.
5. International market research requirements: Discusses the necessity of primary and secondary research to understand consumer preferences and competitive landscape.
6. Market entry plan: Outlines strategic objectives and justifies the selection of wholly-owned subsidiaries for entry.
7. Operational plan: Details the practical implementation of the marketing mix, management structures, and budgetary control mechanisms.
Keywords
LIDL, Sweden, International Marketing, Discount Retail, PEST Analysis, Risk Assessment, Market Entry Strategy, Wholly-owned Subsidiary, Marketing Mix, Product Policy, Pricing Strategy, Market Expansion, Operational Management.
Frequently Asked Questions
What is the core focus of this assignment?
The paper primarily focuses on the internationalization strategy of the German discount retailer LIDL as it plans to enter the Swedish market.
Which central thematic areas are explored?
The study explores the external macro-environment (PEST), risk evaluation, market entry modes, and the subsequent operational adjustments required for the marketing mix.
What is the primary objective of this study?
The main goal is to identify a viable market entry strategy for LIDL and to propose how their established discount business model can be successfully implemented in Sweden.
Which research methodologies are employed?
The author applies several theoretical management frameworks, including the PEST analysis, BERI, the Ansoff matrix, and the Litvak Banting model.
What topics are covered in the main section of the paper?
The main body covers the analysis of Sweden's business environment, a detailed assessment of risks, the choice of entry strategy, and operational aspects like product, price, and logistics.
What are the primary keywords describing this work?
Key terms include LIDL, Sweden, International Marketing, Discount Retail, PEST Analysis, and Market Entry Strategy.
Why is Sweden considered a "hot" country in the Litvak Banting model?
Sweden is categorized as a "hot" country because of its high political stability, market opportunities, and economic development, which implies a high degree of competition for new entrants.
Why is a wholly-owned subsidiary recommended for LIDL?
The paper argues that establishing 100% subsidiaries offers the highest profitability and control, minimizing potential conflicts in corporate culture and avoiding risks associated with external partners.
- Quote paper
- Hauke Barschel (Author), 2004, LIDL's implementation of discount supermarkets in Sweden, Munich, GRIN Verlag, https://www.grin.com/document/28001
