Lidl: The Hard Discounter

            
 
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : BSTR290 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

Business Strategy
Case Length : 15 Pages
Period : 2006-2008
Pub Date : 2008
Teaching Note : Not Available
Organization : Lidl
Industry : Retail
Countries : Europe

Abstract:

Lidl Stiftung & Co. KG (Lidl) is a Germany-based hard discount retailer. It was started in 1973 on the lines of Aldi, the first and the largest discounter in Germany. Over the years, Lidl differentiated its strategies and developed a separate and distinct identity for itself not only in Germany but across Europe. It offered stiff competition to other discount retailers like Penny as well as to full-service, large format stores like Tesco. The case describes some of the ways in which Lidl managed to keep its costs low. Some of the challenges it faced, including allegations of poor treatment of employees, and the growing competition from full-service retailers who were adopting some of the practices of the successful discounters are also discussed.

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Issues:


Understand some of the practices of a discount retail chain.

Analyze the strengths and weaknesses of the company.

Contents:

  Page No.
Introduction 1
Background Note 2
Lidl: Managing the 4 Ps 3
Store Management 4
Challenges Ahead 5
Outlook 7
Exhibits 8

Keywords:

Lidl, Hard discounter, Retailing, Private labels, Promotion, Store management, German retailing

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