The Aldi Way of Working Aldi's business model was based on simplicity and efficiency. The company's motto was 'Top quality at incredibly low prices - guaranteed.
On this note, ALDI Australia has adopted unique strategic management principles that have helped it to gain and maintain competitiveness amidst various challenges faced in the industry.
This paper examines in brief the concepts of strategic management and strategic competitiveness in relation to ALDA Australia.
Finally, a conclusion and several recommendations to the current strategies of this company are made. On the other hand, strategic competitiveness describes a situation where an enterprise successfully develops and implements a value-adding strategy Hitt et al, As — noted, the level of competitive rivalry in Australian food and grocery industry is high due to high level of similarity in the products offered by different players.
However, different retailers have developed different strategies to enable them gain competitive edge in the market while others compete along similar dimensions. As mentioned earlier, the level of competitive rivalry in Australian food and Aldi business case study industry is high as there are numerous global and local retailers offering similar products and services to those that are provided by ALDI.
The bargaining power of customers for ALDI can be said to be moderate. Buyers are able to switch from one retailer to another due to close similarities of products offered by different retailers Kleeman, However, they are price sensitive and this is an added advantage to ALDI since the buyers have a notion that this enterprise offers quality and cheaper goods.
The bargaining power of suppliers for ALDI is low since there are numerous suppliers offering similar products.
ALDI has different options and goes for suppliers with cheapest prices. However, ALDI Australia currently sources its products from local suppliers, which are more expensive than imported products.
The lack of strong preference for specific brands by consumers makes it easy for new entrants to survive in the industry Kleeman, According to Cardwellthis threat is heightened by the fact that it is easy for a competitor to copy the strategies of another competitor and to implement them in the market.
The threat of substitutes in his industry is considerably high due to high level of similarity of products offered by different competitors.
Consumers can easily switch from one retailer to another. Internal Environment According to Chen, and Mohamedthe strength of the internal environment of an enterprise is determined by the effectiveness of its current strategies and how well resources are mobilized in support of the strategies.
ALDI has adopted simple and less complicated organization structure which has contributed effectively in cost saving. The company focuses on core operations only in locations that are deemed to be profitable; limits the number of personnel in each store; their store layouts are designed in a simple manner; and adheres to restricted opening and closing hours Haberer, This enables the enterprise to offer high quality products at low costs.
The enterprise produces its own products and brands, making it to have a high control over them. Apart from this, this organization has listed all of its products and their prices online Kleeman, This has made it easy for the consumers to gain useful information about the firm.
However, the reliance on a small number of trained workers can be considered a weakness. Also, the limited range of products offered by the enterprise can also be deemed as a weakness since it limits consumer choices Haberer, BLS BLS refers to a set of actions taken by an enterprise in order to satisfy the needs of customers and hence, achieve competitive advantage in the future.
This is achieved through adopting an organizational structure that minimizes costs. They are also able to conduct a quality control of their products due to the narrow range of product categories Haberer, The Aldi Group (which comprised of two companies - Aldi Nord and Aldi Sud), was known for its low prices and no-frills business model.
The case describes the various elements of Aldi's business model, and how they allowed the company to adhere to its low price philosophy. Aldi is a leading retailer with over 8, stores worldwide.
They operate a typical store sells around products, compared to approximately 25, items stock at traditional supermarket. Since opening its first store in , Aldi has successfully established itself as one of the most trustworthy retailers in the international business market.
Aldi is a leading retailer with over 8, stores worldwide. Since opening its first store in , Aldi has successfully established itself as one of the most reputable retailers in the international business market.
Global Business Case Study – ALDI Executive Summary This report will discuss the nature of ALDI, investigate the classification of ALDI, outline the responsibilities ALDI has to its stakeholders and explore the internal and external influences that have contributed to ALDI achieving business .
Aldi is a leading retailer with over 8, stores worldwide.
Since opening its first store in , Aldi has successfully established itself as one of the most reputable retailers in the international business market. A Case Study on Aldi I. Introduction The retail industry is a very competitive market.
Organizations need to offer customers value for money. Customers want to pay for low priced but high quality products.