Different types of Strategies
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Introduction to Strategic Management
Strategic management means that in every business organisations strategies are made to achieve desired results. Strategies or plans are formulated to achieve desired results or objectives and implement it to accomplish goals. LIDL is a German global supermarket chain which mainly operates in over 10000 stores in overall Europe. Its main competition is with similar German supermarket chain ALDI, TESCO and NETTO. It has adopted a unique selling strategy to sell its products to the customers at affordable prices. The company has to follow competitive and innovative strategy. Company uses competitive business strategies to face the competition in the market and become the leader. Business should focus on the differentiation products to remain successful in the market. It uses various strategies like cost leadership, focused or differentiation and innovative products to sustain in the market.
LIDL should consist to design its portfolio and must analyze its products available in the company. Business has to adopt suitable strategies to compete in the market and remain profitable. However, such types of organisation which are into retail grocery store chain have to develop and grow in several aspects to maintain and develop the corporate portfolio by effectively developing their products and strategies. LIDL just don’t want to focus on current market rather it wants to grab the opportunities to extend its products in the international market as well. It needs to develop the opportunities to diversify and differentiate its products to be best suited for export. It can use Blue Ocean model which will be best suited for its retail grocery market which focuses on different market. It needs to be beneficial for the organisation to be innovative which will help in achieving success by business.
The company should be creative and innovative which helps in achieving success by company. There are various strategies available with LIDL which can help in moving ahead in the same market segment of retail and supermarket chain. The different types of methods are organic development, mergers and acquisitions methods. Through using all such methods company can achieve or focus on the strategies to achieve success. There are some corporate strategies available with the company to develop itself and become a leader. Moreover, these strategies are formulated to understand the various political and other issues present in the company and try to solve it by making appropriate decisions. LIDL sometimes faces certain challenges in formulating the strategies and for that appropriate decision has to be made. The company focuses on the international potential and make the strategy accordingly. The company can achieve its targets through achieving more customers and by providing them discounted products. There are certain market entry modes like licensing, exporting, foreign direct investment through all these company can achieve different opportunities to become worldwide and increase its profitability. Above all this all the strategies needs to be evaluated to know the effectiveness of implementing the strategies.
B. Indicate and identify the key areas of research
The various key areas of research used in the study are like to know the LIDL companies competitive advantage and innovate its products to identify in international market. The key area of research in this particular report is to know and understand the different strategies adopted by the business to achieve the success by the company. Corporate strategies like intended, emergent, porters, pestle and cage are implemented to know the result from it. This key areas help in the study to achieve desired results. The different competitive strategies are implemented to make the research effective and to obtain certain results. However, this is done also to know the marketing aspects of the company that for what all purpose the particular research has been conducted. To understand the research criteria and to know the aims and objectives that has to be achieved by the company. To determine the customer base and to know the area where company can develop and expand its differentiated product and help in improving the performance.
The company is supposed to make its corporate portfolio by keeping in mind to analyse various area of business and products offered by it. The company uses Blue Ocean theory to mainly focus on the competitive strategies used by the organisation. in this report research has been done to know the different methods adopted by company that which can be useful in effectively achieving targets and earning profitability by company. Research has been done to know that if company uses mergers and acquisitions as a competitive strategy it will be beneficial for the company in achieving targets and success. Through research company will be able to know the area where it can grow or expand itself in the international market. It mainly focuses on becoming the organisation innovative so that it helps LIDL to grow and have different opportunities around the globe.
It can help LIDL to develop its strategy from adopting various researches to develop its knowledge, experience and talent. The strategies help in developing the challenges so that it achieves its overall goals. It helps organisation in making decision and which helps in achieving objectives. The company uses international strategy which shows it overall potential and helps in focusing on development of new as well as present capabilities. There are various drivers analysed by the international market to promote its product by giving discounts on the products which helps in knowing the behaviour of customers. To know that customers are willing to purchase the products offered by company and it helps in giving satisfaction to them. The customer’s intention can be analysed through knowing their perception towards the product. They need to realise their price according to suitability in the international market. It has to modify or differentiate its products according to taste and preference of customers.
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To research on the various market entry modes this helps in analysing the barriers to the effective entry and also to know the evaluation of different strategies. The various entry barriers like exporting, licensing and joint ventures will help the company to know its opportunities and thus in this way can improve its profitability.
C. A critical discussion of strategic models
The different strategic models those are available to develop the organisation to expand its operations in the market and face challenges so to achieve growth and development. The methods or models are Porters five forces model which aims to know the companies aims and objectives set to achieve outcomes. Porter helps in finding the store is based on the particular strategy which aims to achieve the targets and firms strategy and knowing its rivals and other factors which affects the working of the industry and the different factors which helps LIDL in achieving overall growth. Different models are organic development, mergers and acquisitions. Organic development means that development which provides development of own capabilities of the organisation which helps it in providing the autonomous strategy. Mergers and acquisitions models and can help the company to know the growth of company which can be related from occupying other company and expand it. This can be critically evaluated that it impacts the company in achieving objectives.
It can be critically evaluated that it helps in achieving the targets of the company or not. This given methods supposed to know the strategies formulated by the company. LIDL is making corporate strategies as well to implement in the company and to achieve desired objectives. LIDL is a retail grocery store which needs to analyse the strategies and develop it to understand the issues or problems attached with it. It can be helpful for developing the company sometimes or it can help in developing the strategies formulated by the company. The business uses intended process to develop the strategies to plan and develop the strategies which were imposed on the company externally and helps in becoming the leader. It can be developed by the company to develop itself the international strategies which can help it in achieving goals and targets internationally.
The company can try to rank the markets for developing the product for their entry as well as expanding the market. Organisation chooses to enter a new market which helps in identifying internationally and develop its opportunities. The strategies made by company can be critically evaluated to know the best performance and achieve results or targets. LIDL needs to expand its market potential and grow to have evaluation of its performance. Through critically evaluation of company it can be known that entry barriers can impact on the implementation of strategy. Business can achieve targets by capturing different countries by exporting its products and involves in improving the efficiency of the company. The evaluation of the critically evaluated strategies need to ne effectively done so that it helps in implementation of strategy by LIDL. The company founds suitability to apply strategies which has to give proper returns in the form of profits.
The feasibility has to be checked which requires to implement the time, money and other resources effectively which helps the company in analysing the financial position of the company. It needs to be accepted by the stakeholders related to that sector which proves the strategic implementation and analysis has been done to obtain the results.
D. An indication of the key conclusions and findings
The key conclusions and findings by every individual present in the study of the report to obtain different results and analysis. It means that by doing the research what all conclusion and findings are undertaken by the researcher to know the findings of the report. A clear analysis has been made of LIDL to know its various strategies implemented on it to obtain results. The individual contributed to the research report and helps in finding a suitable solution of the company which help in achieving the objectives and results. The strategies which are implemented like porter five forces model that helps in knowing the companies key strategies implementation and growth perspective of LIDL. It needs to have a perfect evaluation of all the strategies to know the best possible outcomes. Company being a retail grocery store has a varied of competition in the market which helps the company to develop itself in the particular market segment by introducing differentiated products.
The different approaches which are implemented to obtain the effective result business conclude it by focusing on the best strategies and implementing those. Through this research report conclusion has been drawn it will be positive for the company to grow and develop itself in the field of retail segment. The implementation of different corporate strategies will lead the firm to come to a particular decision to achieve profits. PESTLE and CAGE helps the company in analysing the business to grow or develop it and it affects the company in achieving objectives. Through all such methods individual can easily reach to a conclusion that all the strategies can be effectively achieved to achieve the results. Business needs to grow and develop it to find a suitable solution to it. It is important from the companies point of view that to know the suitable and feasible findings of the company. Organisation has to achieve success from the set strategies to develop the findings and solutions which can create better understanding of all the implemented strategy.
These all methods and models help the company in achieving suitable solution and findings to easy availability of all objectives and aims. It develops the company and helps in growing its market by spreading its operations throughout the globe. This helps the company in strategic planning and achieving aims externally by not affecting the entry barriers methods and helps in developing exports of products. It can be concluded that LIDL faces challenges and growth opportunities which helps in developing its objectives and aims to have a positive growth and people intend to purchase its products. The corporate parent or board of directors conclude that company obtains and achieves its overall set goals and targets. The formulation of strategy by the retail store chain to have a clear understanding that strategy can be implemented through continuous decision making process. The implementation of international strategy results into varied and differentiate products to be introduced globally at a discounted price so to have more purchases.
E. Identification of key issues and conclusions
To identify and conclude the key issues learned by doing this assignment as a team work. It helps us in learning on various issues which helps us encouraging working as a team to achieve the conclusion and results. As working in a team work it helps in achieving group efforts to identify each ones skills and knowledge. Moreover, it aims in developing the ability and quality of the work assigned to identify the key issues. Group efforts leads to achieve in targets and easy availability of possible outcomes. The identification of key issues will help us in knowing the success or failure of the team work. From this report conclusion has been drawn by learning the key issues of competitive advantage of LIDL to identify the strategies and develop new opportunities to develop or grow in the outside market.
From these key issues we have learned the positive outcome to achieve the competitive targets and obtain results through various methods and strategies we came to know the actual findings and conclusions of the report. This will help us knowing our individual efforts working in a team to achieve results. From this report we came to know LIDL market share and its opportunities which can help in developing its growth to become the leader in the retail sector. Through identifying the key issues and conclusions of the strategic management our group worked as a team effort and helps in analysing the results and outcomes. It proves to be effective for the success of the identification of the key results and conclusions. It proves the leadership quality in each one of us to take the endeavours and fulfil the criteria in achieving possible outcomes and results. Working as a team we found each one doing different task to achieve the possible outcomes. The key issues that are identified by our team to reach a suitable conclusion though adopting different models and strategies helps in achieving suitable results. As a team working on the research report we found various relative key issues with the company and that has been solved very effectively.
The other key issues that were found by different group members were different corporate strategies were implied by the company to achieve entry in the international market and which helps in knowing different barriers to entry. This all depends on the identification of the key issues which was developed after study has been done which results in the success of the group effort. The Blue Ocean theory helps the company in analysing the differentiation of own products by the others. This all issues founded or concluded helps in knowing the success or failure of the work by our team. The efforts set by the team in learning the key issues like competitive advantage of the company, to focus more on the other competitor’s strategy and then deciding our strategy to become the leader in the market.
F. An indication of the way in which their individual contribution impacted on the group assignment
Each individual involved in the project has a significant contribution on the group assignment. This helped all in properly analysing and finding out the conclusions and recommendations that made a clear understanding of the strategic theories and models. There were almost 4 students involved in the project who had different roles and responsibilities involved in it. Before introducing the assignment to all, every one studied the project deeply and tried to understand the desired outcomes and objectives of the project. They involves in finding out the different learning objectives that were demanded in the assignment.
The task of searching the data for particular task was divided on to each student. All involved themselves in reviewing their part of theories. The task one was given to one of the member that included finding out all the strategies and tactics that were adopted by the selected company. The study involved finding all the journals and relevant books and online journals and articles that greatly helped in completing the task. The company’s manual and policy books were also studied thoroughly by the member that helped him in concluding to the thinking that was adopted by the company. It required studying the strategic planning process as a theoretical concept and that the selected company adopts.
Task two then was to consider the industry of the company and undergoing its environmental analysis. The second member who was given this task studied various aspects and position of the company in the market by reviewing the internet. This made him to consider the critical evaluation of the various strategies adopted by the company and the various environmental factors including the PESTLE analysis and studying the competitive advantage. This also made the person to deeply study the company and its position related to the industry. It also involved finding out the issues and scenarios that the company is facing. It also needed to study the impact of globalisation in the economy. This person has to study and review the complete industry level through the latest resources available in the internet.
One member was allotted the task of reviewing the literature that involved doing a complete research through journals, books, libraries and reading the texts of both the authors, Jim Collins and Rita McGrath, and compared the findings of both. Also the responsibility of making each individual understand all the tasks was given. This task was a tedious task and involved the help and support of all the other members too. This required studying the complete texts and critically analysing the study and findings of both the authors.
All the tasks were focussed to be divided equally among all the members and thus they had significant role and contribution in completing this group assignment. This assignment involved importantly considering the relevance of the data and each of the members was closely involved in supporting the other ones. All at the end underwent a deep study of the complete assignment suggesting significant changes and recommendations for the improvisation of the complete project.