Swot
Strengths
• Lidl is a well known name for providing quality products at lower prices. People from all the sections of society use the products of Lidl
• Lidl has very high operational efficiencies and lower operating costs. This has helped them to achieve higher profitability in spite of having low selling cost.
• Lidl has achieved continuously increased turnovers by employing minimal staff, smaller stores and lesser shelf area.
• Economies of scale thorough uniformity of product assortment across the stores throughout the Europe.
• Being a privately owned business, independence of operation and authority to take quick decisions has helped to magnify its scale quickly.
• Lidl enjoys a good customer loyalty as compared to its competitors.
• Lidl has many privately own brands which has more market share than leading brands
Weaknesses
• Lidl has a weaker image as a brand due to its low price quality strategy. It is perceived as a shopping destination of low income strata customers. This image may be harmful in case quality becomes the priority of customers rather than price alone.
• Lidl has very limited product types in each category thus by leaving its customers with lesser choices to select from. This aspect may lead to loosing variety seeking customers.
• Lidl has been into many controversies regarding mistreatment of its staff and has earned a bad name in the media. Company has been accused at multiple instances for wiretapping on its own employees and this has deteriorated the brand image of the company.
• There is minimal online presence. This is a laidback for the company in terms of not providing customer convenience.
Opportunities
• Lidl has market share of only 2.0% of the retail market in UK. Hence there is a huge business expansion potential available in the market.
• With the advancement of technology and customer base being more techno savvy, there is a huge opportunity to expand Lidl’s presence over the internet by providing online
• Lidl is a well known name for providing quality products at lower prices. People from all the sections of society use the products of Lidl
• Lidl has very high operational efficiencies and lower operating costs. This has helped them to achieve higher profitability in spite of having low selling cost.
• Lidl has achieved continuously increased turnovers by employing minimal staff, smaller stores and lesser shelf area.
• Economies of scale thorough uniformity of product assortment across the stores throughout the Europe.
• Being a privately owned business, independence of operation and authority to take quick decisions has helped to magnify its scale quickly.
• Lidl enjoys a good customer loyalty as compared to its competitors.
• Lidl has many privately own brands which has more market share than leading brands
Weaknesses
• Lidl has a weaker image as a brand due to its low price quality strategy. It is perceived as a shopping destination of low income strata customers. This image may be harmful in case quality becomes the priority of customers rather than price alone.
• Lidl has very limited product types in each category thus by leaving its customers with lesser choices to select from. This aspect may lead to loosing variety seeking customers.
• Lidl has been into many controversies regarding mistreatment of its staff and has earned a bad name in the media. Company has been accused at multiple instances for wiretapping on its own employees and this has deteriorated the brand image of the company.
• There is minimal online presence. This is a laidback for the company in terms of not providing customer convenience.
Opportunities
• Lidl has market share of only 2.0% of the retail market in UK. Hence there is a huge business expansion potential available in the market.
• With the advancement of technology and customer base being more techno savvy, there is a huge opportunity to expand Lidl’s presence over the internet by providing online