Lidl Norway
Why did Lidl Fail in Norway?
A Stakeholder Approach
Haakon Winger Eide
Supervisor Andreas Falkenberg
This Master’s Thesis is carried out as a part of the education at the University of Agder and is therefore approved as a part of this education. However, this does not imply that the University answers for the methods that are used or the conclusions that are drawn.
University of Agder, 2010 Faculty of Economics and Social Sciences Department of Economics and Business Administration
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Abstract
When talking to a Norwegian about Lidl, most people will have a strong opinion about the company. Some will tell you that Lidl was a positive contributor to the Norwegian grocery market, because of their low prices and “exotic” products. Some will tell you that they never shopped there, because they didn’t want to support a foreign company that ignored the labor unions, build large and unattractive buildings in their towns, only had unfamiliar food in the shelves and who sent the profit out of the country. If you ask Norwegians why Lidl failed in Norway, many will argue that Lidl did not fulfill the Norwegian shoppers ' needs and did not fit in with their values But is it as simple as that? Why is Lidl a success in most other European countries, while in Norway they decided to pull out of the market after less than four years? What did Lidl do wrong in their attempt to establish their brand name in Norway? Why didn’t they manage to adapt to the Norwegian market? And maybe more important, is it only their failure to adapt to the Norwegian market that led to Lidl’s withdrawal all their operations from Norway? Perhaps it is something else and special with the Norwegian market and competition that made them fail? This thesis tries to answer these questions through a
A Stakeholder Approach
Haakon Winger Eide
Supervisor Andreas Falkenberg
This Master’s Thesis is carried out as a part of the education at the University of Agder and is therefore approved as a part of this education. However, this does not imply that the University answers for the methods that are used or the conclusions that are drawn.
University of Agder, 2010 Faculty of Economics and Social Sciences Department of Economics and Business Administration
i
ii
Abstract
When talking to a Norwegian about Lidl, most people will have a strong opinion about the company. Some will tell you that Lidl was a positive contributor to the Norwegian grocery market, because of their low prices and “exotic” products. Some will tell you that they never shopped there, because they didn’t want to support a foreign company that ignored the labor unions, build large and unattractive buildings in their towns, only had unfamiliar food in the shelves and who sent the profit out of the country. If you ask Norwegians why Lidl failed in Norway, many will argue that Lidl did not fulfill the Norwegian shoppers ' needs and did not fit in with their values But is it as simple as that? Why is Lidl a success in most other European countries, while in Norway they decided to pull out of the market after less than four years? What did Lidl do wrong in their attempt to establish their brand name in Norway? Why didn’t they manage to adapt to the Norwegian market? And maybe more important, is it only their failure to adapt to the Norwegian market that led to Lidl’s withdrawal all their operations from Norway? Perhaps it is something else and special with the Norwegian market and competition that made them fail? This thesis tries to answer these questions through a