Case Analysis of Aldi Xiaolong Huang Oct.6th, 2014 A case analysis offered in partial fulfillment of the requirements for the MB316 course in management & business at Skidmore College with Professor Tancredi Fall 2014 Statement of Responsibility: I, the undersigned, have abided by the Skidmore Honor Code in completing this assignment. ________________________ (signature) Aldi Case Analysis Simplicity, focus, quality and a desire to serve customers are playing very important role in Aldi’s culture and daily operations. Audi, as a German company, is very aggressively expanding in the US and certainly have established its market in the US. In a very competitive environment, Aldi has its own unique way of operating which makes it competitors hard to match price and quality. Aldi is an international company which has stores in multiple countries such as Germany, United Kingdom, and in the United States etc. As the case shows, Aldi is very popular in Germany, which captured 90% of shoppers. Aldi’s success in Germany implies its well-designed business model and the strategy of Aldi will be discussed below (See Exhibit 1). The most amazing factor about Aldi is its reputation among its customers. As the case suggests, according to public survey, Aldi is always rated as a company with good quality products, loyal fan base, good taste private label products. (Lane, 2014) As mentioned above, Aldi is a grocery shopping store and strives to provide good
The reputation and recognition make Aldi attractive in the marketing activities and this aspect needs to be improved in the future to compete with both existing and forthcoming rivals. Meanwhile, the high buying power and costs control would help Aldi to diversify its products and increase market penetration to serve diverse Australian population. This leads to the reconsideration of Aldi’s current strategy of limiting product range to adopt other strategies as a number of differentiation strategies has been used by other
As Aldi has already established itself as a large discount supermarket chain with over 10,000 stores in 18 different countries including Australia (2001), and holds a large market share in the grocery world due to its business culture and market leading initiatives. This report aims to provide the ALDI board of directors with:
2. Reed’s strategy is to attract affluent customers by providing a wider range of superior selections. Because of the wide product selection, it is not able to keep operating expenses as low as Aldi and dollar stores (who have a limited product focus). Therefore, it is not at Reed’s advantage to enter into the area (low price strategy) where they don’t have a real competitive advantage.
1) Should Wal-Mart be expected to protect small businesses in the communities within which it operates?
From the time it opened, Aldi has expanded the number of product assortments that allow consumers to find nearly anything they need to supply and feed their families. Aldi developed a strong marketing program and decentralized their pricing and assortments that also include some well-known products. Aldi’s begins its value propositions to shoppers with its amazingly low prices. Their “hard” discount pricing, averages about 30% below standard supermarkets like Winn-Dixie or Kroger’s (Brick, 2016). They attribute their success and growth to the “hard discount” model as it has demonstrated to be highly effective. Aldi is different than “large” discounters like Walmart where Walmart’s varieties are limited in size and led by private label products, and investments are made in stores atmosphere, unfortunately, resulting in lackluster customer service. This allows “hard” discounters like Aldi to win the grocery price war by greater margins than Walmart, making Aldi a major competitor of Walmart (Bartone,
Trader Joe’s has internally created a brand for its company using a different strategy as compared to other supermarkets. Its approach of effective relationship-building program pleases customers through unrivaled customer service. This case study presents many factors that play a part in their customer relations strategy. Trader Joe’s does not focus on advertising. Rather, it focuses on effective internal communications with employees to build strong customer relationships. Trader Joe’s takes a progressive approach to internal communications by allowing their employees to bring their own creativity to the workplace, by providing them with the context in which their role contributes to the business success, and asking for employees
Aldi was first founded in Essen, Germany in 1913 by the Albrecht family. The Albrecht family started selling groceries in their small shop. With big
Wal-Mart is a world-wide active American retail trade company and currently the largest retail company in the world. Beginning in 1962, Wal-Mart has made the transition from a small firm in Arkansas to the largest employer with 3, 800 store units in the United States with record revenues today. But nevertheless, since Wal-Mart launched its online branch, it had to suffer from substantial setbacks from competitors such as Amazon.com or Ebay.
Aldi first established itself after opening its first store in 1913, as one of the most reputable retailers in the global business market by providing great value and quality. Aldi’s vision is:
Best Buy Inc. is one of the biggest trade companies that specializes in selling electronics within North America, including Mexico and Canada. Besides providing a wide selection of products, they have an advantage over other competitors because of the superior products through differentiation strategy. Best buy increases their customer value by providing something to their customers not provided by their competitors, and that is the Best Buy’s Geek Squad protection which provides 24 hour in home technical assistance. This company has experimented with different strategies from Concept I to Concept IV. For this reason, the following mini case study will demonstrate its strategies developed which led to its success and how its success is shown in its income statement for the fiscal year of 2016.
1. Based on the company's external and internal environmental analyses (using SWOT analysis), outline the primary factors impacting Wal-Mart's strategy. Organize these factors by Stakeholder Group to prioritize expectations and identify conflicting pressures on the organization. INTERNAL ENVIRONMENTAL ANALYSIS STRENGTHS Capital Market Stakeholders: ▪ Has grown substantially over recent years and has experienced global expansion. According to exhibit 3 in the case, Wal-Mart's revenue has consistently increased. In 1997, they had revenues of $99,627 billion and by 2007 their revenue increased 250% to $348,650 billion. This growth had an impact on Wal-Mart's net income, showing that they were able to control their expenses while continuing to
For the final group project we chose to complete a management analysis on Wal-Mart. Covered in this paper are the issues of productivity, hiring practices, corporate social responsibility and culture, diversity and affirmative action, the use of information technology, leadership, teamwork, and managing ethics.
Established in 1913 in Germany, ALDI operates what are known in the grocery business as "limited-assortment" stores or "hard discounters." ALDI has taken this retail concept, which features low overhead and scanty selection, to its leanest, meanest extreme. Unlike the vast majority of supermarket chains, ALDI store carries about 1,400 regularly-stocked items, including fresh meat, and, in certain locations, beer and wine, of which nearly all are ALDI, select brands. Though the original ALDI concept has been modified somewhat to accommodate the ever-changing tastes and preferences, the core concept and philosophy remains: “Incredible Value Every Day.”
by 2018. Aldi is also deliberating their plan to incorporate a new line of organic foods. Aldi has done quite well since their humble beginnings. Their focus on frugality has set them apart from all of their competition. It is possible that, within their extreme frugality, they may have cut out some necessary costs. Exhibit 1 outlines Aldi’s “Doing without Checklist”; this exhibit list all of the typically expected business costs that Aldi has cut. This list of 20 practices includes a few that may be necessary for a successful expansion. First, Aldi does not perform any external market research. If Aldi plans to expand into other countries, state, and/or regions, they may find that market research is vital to understand the needs and wants of those new customers. Aldi does not change their supply or product mix by location, but understanding the wants and needs of customers could help determine Aldi’s probability of success in the new location. Similarly, Aldi does not do any customer surveys. This may hinder Aldi, not only in their potential new expansion, but also in their effort to stay on top of the dynamic
Whole Foods Market (WFM) was founded in 1980 as a single local grocery store by John Mackey for natural and health foods. By 1991, WFM had 10 up-and-running stores with revenues of about $92.5 million in United States Dollars (USD), and a net income of about $1.6 million in USD. In 1992 WFM became a publicly traded company with its stock trading on the NASDAQ. By 2006 Whole Foods Market had progressed into the world’s largest retail chain of natural and organic foods supermarket. As of September 2007 WFM has 276 stores up-and-running. 263 of the stores are located throughout 37 of the U.S. and the District of Columbia. 7 of the stores are in Canada and 6 in the U.K.