The Weaknesses and Threats Experienced by Lidl

Lidl has price sensitive customers who usually have a limited budget whilst shopping or choose to buy mediocre quality product for households and grocery needs . Lidl has a high market share in the fast growing market segment of the food retailers. It has become a global player due to the fact that Lidl expanded successfully to Europe and owns round about 9000 stores. After the success in Europe . Another important Strengths is the very good pricing which attracts many consumers.
The main Weakness of Lidl is the damaged image because of the observation scandal and the discussion about minimum wages, which affects nearly every discounter. Additionally the low customer loyalty represents another main Weakness. This is an issue because of the low switching costs for the consumers because of the high competition in the food retail sector. Poor people are more interested in low pricing products.
The main Threats are the competitors on the food retail market. Lidl and there is Aldi, the main competitor in Germany. Aldi is a Threat and an Opportunity. Lidl already beat Aldi in the German and European market.