According to the scenario, I am appointed as the strategic consultant at the retailer company named Grocer Lidl. This company is going to expand its business in the Asian market for that case there is a need to make a proper strategic management report. This report will analyze the best strategic direction and feasibility for the organization to grow in such a market.

Company background of Strategic management for Grocer Lidl

According to this history, in 1930 a small independent grocery wholesaler store was created and it is located in Germany. Now this company is one of the largest grocery retailer stores in Europe. Their first store was opened in 1973 in Germany and now the store branches are located all over Europe. After this in 1994, this company was involved in opening a new retail store located in the UK and they are started to open more 600 stores that are focusing on high quality but the low price.

Key challenges faced by the company of Strategic management for Grocer Lidl

This retail company has faced some challenges when they opened a new store in Norway. It can be noted that they have opened their first store in Norway in 2004 and only in 4 years they also sold their assets and left the country. This is because they are facing some pressure from that country. The challenges are faced by this company in Norway are given below.

The government regulations are extremely high and due to this, they are unable to import food products. Due to such limitations, they are unable to import different food items from Germany. The next thing is that there is huge competition among other retailer stores. This is because there are a lot of stores are located in that country and it has become extremely difficult to face high-quality competition. The next thing is that this company is unable to face these challenges in a proper way. This is because they haven’t made a proper strategic plan for opening this store in that country. Now this store wanted to move towards the Asian market. for that, they must have to resolve these key issues so through this they are able to make a proper mark in that market.

External environmental analysis

According to the given scenario, it can be noted that this company is moving towards the Asian market. Also, it can be noted that there are a lot of things are different from the European countries. Due to this analysis, it will become easy to analyze the external environment for this company.

Pestle of Strategic management for Grocer Lidl  

In this analysis, there is a discussion about the political, economic, social, and technological legal and environmental.

Political of Strategic management for Grocer Lidl

According to the given information it can be seen that the political laws are completely changed in the Asian market. The main reason is that it is a different continent. Due to this, their laws are completely different from European countries. The main reason is that all European countries are almost the same but it is a little bit different in the laws due to their current government. But for the case of the Asian market, it is completely different in their laws and government officials. For that, this retail company has to talk with the government officials of every country if they wanted to become successful in the Asian market.

Economical of Strategic management for Grocer Lidl

One of the most important things is that there is a huge problem for the economic condition of the Asian market. The main reason is that the economic condition of this market is not suitable and stronger than the other European countries. It can be seen that there are some countries in the Asian market that don’t contain a good economy rate. Due to this fact, this company may face a lot of trouble in this market. The main reason is that the economical culture of the Asian market is completely variable. If this company is going to open this store in Japan, China or Saudi Arabia then due to this they may get a lot of advantages because these countries are extremely strong. But if they moved towards lower economical rate countries then at that place they may face a lot of economic barriers through these they are unable to proceed in that country for a long time.

Social of Strategic management for Grocer Lidl

It can be noted that the Asian market is completely different than the European one on the basis of social culture. From the social analysis of the Asian market, it can be noted that their culture is completely different from them. If you consider Muslim countries in the Asian market it can be seen that they have a totally different culture. Due to this, they have to change some products and implement theirs according to their requirements. The main thing is that they may face a problem by finding real suppliers for their local products. This company has to make a proper plan to attract valuable suppliers from these countries. One more thing while moving towards the Asian market they have to learn important things about their culture. This is because through this they are able to make a good strategy before going to the Asian market (Bhatia, 2008).

Technological of Strategic management for Grocer Lidl

The main thing is that technology is increasing day by day. Due to this, the main fact is that the retail company has to make some technological changes in their plan. This can be done by just analyzing the competitor retail stores in the Asian market. If this company is able to analyze its main competitors then it will become extremely easy for them to apply these technologies in their retail store. Moreover, there is one more important thing is that the technological equipment of the European countries is extremely high. The next fact is that they are also using technology in their important functions. This shows that there will be no difficulty for them in expanding their store in the Asian market.

Legal of Strategic management for Grocer Lidl

It can be difficult for this company to follow the legal requirement in the Asian market. The main reason is that they are one of the huge super retail stores in the whole of Europe. Due to this fact they will totally ignore the legal requirement and wanted to implement their rules. The next thing is that the laws must be followed by this company when they are expanding toward the Asian market. The best thing is that if this company makes a proper plan of how they are able to react against these legal rights in a proper way (Abbamonte, 2018).

Environmental of Strategic management for Grocer Lidl

The fact is that the consumer is already aware of their footprints. In that case, it will become extremely easy for this retail store to overcome the environmental issues for their consumers. This company is focusing on different things for promoting its environment in a proper way. They are promoting an important message and that is related to tomorrow. It can be seen that this company is moving towards the Asian market then they are able to promote their environment in that market. This can be done by delivering unique procedures for the sake of optimal planning and apply long term and short term goals for the environment.  

Five forces of the model

Bargaining power of the supplier

The huge retailers' companies from German every so often have a huge range of suppliers. This has definitely contributed as a great strategy to assist the retailers in ensuring their stability. These German retailers have appeared to evade conceivable interruptions in the contexts of deliveries as well as price fluctuations. In addition to this situation, a number of certain huge retailers in German have initiated to trade their own brand items. These two significant facts have definitely weakened the power of suppliers of the food retail industry in German. Thus, it is fair to say that the bargaining power of the supplier for Grocer Lidl to enter the Asian market is moderate.

Bargaining power of the customers

There is a fundamental change would be suffered by Grocer Lidl in the context of consumer’s behaviour in the Asian market that definitely needed to be responded to. At the moment the significance of health has turned out to become a big concern for the Asian market’s consumers. The suitability food has also turned out to become less significant, in which the Asian consumers have been getting more interested in healthy and fresh food. Another significant aspect is the price. Due to there are so many big retailers in the Asian market, the consumer has to face no substituting costs, and by this means, the retailers need to have a smart price scheme. Thus, we can assume that there is a moderate buyer power for the Grocer Lidl.

The threat of a new entrant

In the Asian market, it is quite difficult for the new entrants to access the market due to the forceful marketing along with the pricing schemes of the existing retailers in the Asian market (Musso, 2014). Therefore, we can say that there would be a low entry as well as exit costs in the retail industry along with the changes in the behaviors of consumer that eventually gives Grocer Lidl a potential niche to access the Asian market successfully, and hence, the threat of a new entrant is moderate.

The threat of new substitute

Due to the Grocer Lidl might be one of the rare retailer companies from German that enter the Asian market, then it could lead the success for this retailer itself with its differentiation. For this reason, the threat if a new substitute for the Grocer Lidl in the Asian market is weak.

Rivalry threat of Strategic management for Grocer Lidl

The Asian market has been famous as a big and challenging market for the business, including the retail business as well. There are a number of big retailers that already exist in the Asian market. This eventually creates a strong rivalry threat for Grocer Lidl.

Internal environmental analysis  

Internal environmental analysis includes SWOT analysis as well as VRIO analysis.

SWOT of Strategic management for Grocer Lidl

SWOT analysis of Lidl is presented below:

 Strengths of Strategic management for Grocer Lidl

Lidl is working in the international market from the past many years with a positive brand image. Customers are satisfied with the services and products of Lidl therefore they are loyal to Lidl. The company considers this loyalty as customer equity as they can expand their sales by targeting these loyal customers. Moreover, Lidl is also providing a wide range of variety for products that attract customers and work as a strength for Lidl in the targeted market. Although, another major strength factor identified by the internal environmental analysis is financial strength. Lidl is financially strong which makes it capable to finance new products and services in the business to enhance its competitive strength. Additionally, goodwill of the company is also a major strength for Lidl in the execution of business operations in the new geographical segment. Moreover, employees and managerial staff members are highly qualified and experienced. Experience and high qualification enable managerial staff members to develop appropriate strategies for business operations. While on the other than, trained staff members with communication skills and customer handling skills generate a positive image of Lidl in the minds of customers.             

Weaknesses of Strategic management for Grocer Lidl

Lidl is not highly focused on marketing as compared to its competitor companies. Limited marketing and advertisement are weaknesses of Lidl as without marketing and advertisement Lidl cannot maintain its image in the market. Moreover, marketing and advertisement are highly essential to remain sustainable in the competitive market and to spread awareness about products and services in the targeted segment. 

Opportunities of Strategic management for Grocer Lidl

Opportunities identified by the internal environmental analysis are increasing population rate, increase in per capita income, and trend of shopping among women. An increase in the population rate of selected geographical segments is an opportunity for Lidl to expand its business and enhance profitability in the future. Somehow, increasing income and betterment of economic conditions is also an opportunity for Lidl to increase sales. Furthermore, the trend of shopping among women is also increasing with time which indicates the expansion of the future market for Lidl.  

Threats of Strategic management for Grocer Lidl

Threats for Lidl include changes in the choices of customers, increasing competition by new entrants, innovative services for existing competitor companies, and changing law, political, and environmental policies regarding businesses. Changes in law and regulation policies such as tax rate increase or changes in economic conditions directly influence business outcomes of a targeted market. Such factors are required to be managed by the company in an appropriate manner to prevent financial loss and negative consequences.     

VRIO
Valuable of Strategic management for Grocer Lidl

Grocer Lidl has a number of valuable assets such as qualified and trained staff, the strength of its financial, the customer equity with its brand, as well as high-quality product and services delivered by this huge retailer from German.

Rare of Strategic management for Grocer Lidl

The choice of counties along with the premium locations which delivered a deep diffusion into the Asian retail market. A resource is not existing together with its rivals.

Inimitable of Strategic management for Grocer Lidl

It would be an excessively high cost for the rivals of Grocer Lidl to compete with this retailer company in the market with certain location benefits. Furthermore, there is superior access to inputs, in which the rivals might be unable to duplicate comparable sourcing type. The sales strategy that has been performed by the Grocer Lidl is a quite unique one. In fact, this type of strategy might also unable to be implemented by its rivals. The reason is due to the competitors in the Asian market might not provide sufficient incentive to customers to choose their products or services. The entry into the Asian market will surely deliver this retailer company a combination of strained and qualified human resources as well as further local benefits, which might not be easily simulated by ensuing entrants.

Organized  of Strategic management for Grocer Lidl

The Grocer Lidl has the capability to use its resources proficiently, which at the moment does not have an intentionally comparable substitute, and for this reason, the rivals might only be subjected to get cost dis-advantages.

Identification of completive strategies

Some competitive strategies acquired by Grocer Lidl are such as:

·         Exact strong brand name and become one of the cheapest retailers in the industry. Even though some products offered by Lidl are frequently very similar to the products sold in other stores, but, the main difference might be the dissimilar brand names of the products in Lidl stores

·         Clever pricing strategies

·         Amazingly cheap price

·         Extraordinary training standards to make sure employees can perform perfectly

Strategic directions of Strategic management for Grocer Lidl

In the analysis of Lidl's current market procedures, three directions could be placed to help Lidl procure a further noticeable portion of the Asian market basic food item advertise. The three recommendations for this retail are;

·         Extend the convenience of their position to acknowledge the right one and collect all together or even transportation. This would grow its essence in the Asian market.

·         Create as well as execute high society noticeable items so as to attention on added figure as well as rival the significant grocery store retailers on the whole the more smooth circumstance.

·         Build firm interferences of passage to stop dissimilar relations from arriving the Asian market basic retailer product showcase and conceivably invading on the market share of Lidl.

Thus, in order to endure focused in the Asian market food retail industry, and maintain expanding on their Asian market of the general industry, Lidl have to to use the formerly declared procedures. Besides, this could carry on the company to succeeding a mixture of conservative methodologies, as the existing of high society brands, in a combination with their current structure of business, will recommend a parting system is set up. Be that as it may, if Lidl seeks after the appropriation of dissimilar procedures, the retailer must be able to guarantee that their current customer isn't detached, otherwise they might end up in losing its market share. Moreover, Lidl must maintain in opening more than one of its stores in the Asian market so as to extend its kernel as well as obtainability, which will allow its responsibilities to have a similar performance to the subsequent significant market stores (A. M. Findlay, 2002).

Conclusion of Strategic management for Grocer Lidl

Summing up all the discussion from above, it is concluded that the Lidl Company is moving towards the Asian market. In this report, there is comprehensive information on the strategic management of this company. If this company wanted to become successful so they have to make a proper strategic plan. This report is discussing the main features of the internal and external analysis of the company. This company is going to expand its business in the Asian market for that case there is a need to make a proper strategic management report. This report will analyze the best strategic direction and feasibility for the organization to grow in such a market.

According to this history, in 1930 a small independent grocery wholesaler store was created and it is located in Germany. Now this company is one of the largest grocery retailer stores in Europe. The main reason is that it is a different continent. Due to this, their laws are completely different from European countries. The main reason is that all European countries are almost the same but it is a little bit different in the laws due to their current government. It can be seen that there are some countries in the Asian market that don’t contain a good economy rate. Due to this fact, this company may face a lot of trouble in this market. The main reason is that the economical culture of the Asian market is completely variable.

Due to this, they have to change some products and implement theirs according to their requirements. The main thing is that they may face a problem by finding real suppliers for their local products. If this company is able to analyze its main competitors then it will become extremely easy for them to apply these technologies in their retail store. Moreover, there is one more important thing is that the technological equipment of the European countries is extremely high. Additionally, goodwill of the company is also a major strength for Lidl in the execution of business operations in the new geographical segment. Moreover, employees and managerial staff members are highly qualified and experienced. Experience and high qualification enable managerial staff members to develop appropriate strategies for business operations

References of Strategic management for Grocer Lidl

A. M. Findlay, L. S. (2002). Retailing: The evolution and development of retailing. Taylor & Francis.

Abbamonte, K. (2018, May 30). Establishing Your Retail Business: What Legal Structure is Right For You. Retrieved from https://www.shopify.com/retail/legal-structures-retail

Bhatia, S. (2008). Retail Management. Atlantic Publishers & Dist.

Musso, F. (2014). Handbook of Research on Retailer-Consumer Relationship Development. IGI Global.

Robert, T., & Aganda, B. (2016). EFFECT OF ACCOUNTING INFORMATION SYSTEM ON FINANCIAL REPORTING QUALITY: A REVIEW OF THEORIES AND EMPIRICAL WORKS. A SEMINAR PAPER PRESENTED TO THE DEPARTMENT OF ACCOUNTING AND FINANCE, UNIVERSITY OF AGRICULTURE MAKURDI, IN PARTIAL FULFILMENT OF THE AWARD OF MASTER OF SCIENCE (M.Sc.) DEGREE IN ACCOUNTING.

Schulenkorf, N. (2010). The roles and responsibilities of a change agent in sport event development projects. Sport Management Review .

Thomas, J. (2019). SWOT IT OUT! Forensic Science International: Synerg.