The provided draft of the report on Lidl’s expansion to the U.S. market has many strengths in terms of discussing perspectives for the company’s entry into a new market. Possible locations for Lidl stores and associated plans are discussed in detail as Strategy A and Strategy B with the focus on advantages and disadvantages of selecting this or that alternative. Much attention is paid to analyzing the competition and trends in the U.S. market with the focus on assessing the growth of grocery stores. The detailed examination of Aldi’s strategies in the U.S. market also contributes to the quality of the provided analysis because the assessment of this competitor’s strategies and successes or failures provides Lidl with more information regarding the market environments in the United States. Thus, an overview of the industry and trends in it are provided with much detail. Furthermore, it is important to note that the authors’ focus is on a comprehensive description of the industry and market in the United States as the country where Lidl plans to expand.
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The concentration on tendencies in the market is important to evaluate perspectives or opportunities for the company’s expansion and further progress in terms of developing a supply chain, attracting customers, and increasing its competitive advantage. One more strength of the report is the focus on current and potential sources of the competitive advantage for Lidl in the United States. Thus, the analysis of perspectives for opening stores in regions known as “food deserts” contributes to developing an effective strategy for Lidl (U.S. Department of Agriculture). The recommendations provided for the further use by Lidl’s managers are also appropriate, and they are based on evidence and the complex analysis of data in the context of market trends, abilities to reach and attract target consumers, and abilities to develop a supply chain, as well as in the context of addressing the identified political, economic, and regulatory risks.
However, there are also sections and topics in the report which require the further development and clarification. In spite of the fact that the authors provide the information regarding the company’s background, it is possible to add more details about Lidl’s business model and sources of its competitive advantage. It is stated in some parts of the report that the company orients to developing the discount model, and its advantage is based on price, the variety of proposed brands, and an effective supply chain. However, these aspects require the further clarification while discussing their role in the U.S. context.
If it is possible, the business model and sources of Lidl’s competitive advantage can be discussed in separate sections of this report. The timeframe for the planned expansion is also unclear. Although the authors have concentrated on analyzing the expansion strategies of Aldi, one of the main Lidl’s competitors, in order to conclude regarding lessons for the company, it is also possible to recommend paying more attention to researching how Lidl expanded in the European market. The experience of Lidl in European countries and the United States can be different, but it is essential to know what strategies can work in a new market and what approaches should be avoided. While discussing the report from the perspective of a consultant in the company, it is possible to state that all other important details are presented and analyzed in the report.
U.S. Department of Agriculture. “Documentation.” Economic Research Service. 2017, Web.