Strategic analysis: LIDL FRANCE

Thèmes abordés

LIDL FRANCE, discount supermarket, strategic analysis, pestel analysis, external analysis, Porter's five forces, Netto, ED, Dia, ALDI, Leader Price, Super U, Casino, Auchan, Intermarché, Leclerc, Carrefour, Monoprix, internal analysis, SWOT analysis, BCG Matrix, benchmarketing

Résumé du document

Lidl Stiftung and Co. KG is a German global discount supermarket chain founded in 1930 and based in Germany. The company operates over 10,000 stores across Europe - 1,500 in France - and expanded to the United States in 2017. Lidl takes part of hard-discount banners and relies on a minimalist concept to reduce costs and offer products at very low prices. The hard-discount model is as following: only 1,500 private label products sold at very low prices thanks to a lot of rotations. According to the audit company Deloitte, Lidl is the seventh largest distributor in the world, with sales estimated at $ 87.8 billion in 2011.

Extraits

[...] External analysis A. Pestel analysis Political: Political stability in European countries, easier to do business in such environment. There is an existence of policies in the retail industry but there are few policies about the transparency of the products (all nutritional information on the industrial food) Economic: Most of the countries in which Lidl is expanding, are developed countries with economic growth even if Lidl is expanding to other economies (stores will open in the United States in 2018). However, one has to notice that here is a global loss of purchasing power that ends up in a fall of consumption. [...]

[...] Moreover, both brands had an evolution to better quality at the same time in 2012. Matthias Queck, an AFP (Agence France Presse) analyst, explains that “these brands went from “hard discount” to “smart discount””. The Monoprix model: Monoprix is a major French retail chain known for its quality and its “delicatessen” spirit. In many ways, Lidl's benchmarking strategy is based on the French brand's Monoprix model. Therefore, as this model uses quality and a qualitative image, we can link it to Lidl's dream of becoming a qualitative retailer. [...]

[...] • As their products are so cheap consumers can often think that the quality is not good enough. • Has the reputation of not treating its employees very well Opportunities: • Potential to expand in other countries where low-cost stores are demanded (growing economies as Asia/Africa) • Expanding abroad can provide more funds to invest in French stores, and therefore answer to the demand of quality of French customers. • Expand their website to actually accept orders and sell products. [...]

[...] Thus, Lidl should focus it on social plan, because it's very important for the perception of the brand even more if the company wants to upgrade to a higher level. References - Portail de l'IE. La nouvelle stratégie de LIDL, une nécessité d'adaptation au marché français. https://portail-ie.fr/analysis/1129/la- nouvelle-strategie-de-lidl-une-necessite-dadaptation-au-marche-francais (accessed 2017-09-25) - LSA, Commerce & Consommations. Les Dirigeants de Lidl dévoilent leur stratégie. https://www.lsa-conso.fr/les-dirigeants-de-lidl-devoilent-leur- strategie,226185(accessed 2017-09-25) - Capital. Lidl s'embourgeoise, et ça marche https://www.capital.fr/entreprises-marches/lidl-s-embourgeoise-et-ca-marche- 1105106 (accessed 2017-09-25) - Strategies. Lidl, deuxieme annonceur français en 2016. http://www.strategies.fr/actualites/marques/1057141W/lidl-deuxieme- annonceur-francais-en-2016.html(accessed 2017-09-28) - Grenoble Ecole de Management – Entreprises. Lidl France, en route vers l'excellence. [...]

[...] In traditional supermarket we find: Carrefour, Intermarché, Auchan, Leclerc, Super U In Hard Discount Market: Adil, Leaderprice, Dia, Netto But, Lidl stays the leader on the hard discount market, and despite the efforts made by hard-discounter like the discount department of Auchan or Leaderprice, Lidl remains competitive. We can see on the graph that Lidl is the biggest hard-discounter with of market shares in 2014. Thanks to this Porter analysis, we can see the position of Lidl facing its competitor. Indeed, we have seen that the threat of potential market entrants are low whereas the rivalry between competitors and the threat of substitutes are quite high which means that Lidl should focus on its current competitors. C. [...]