Aldi australia strategy case study

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Aldi australia strategy case study

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.

Aldi australia strategy case study

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 grocery 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.

ALDI Case Study

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, Competitive pricing is a key strategy for Aldi.

Aldi is able to offer quality products at low prices as it buys in great volume. The fact ALDI CASE STUDY 18/9/13 Page 4 Aldi also uses direct e-mails.

These e-mails allow Aldi to. In this study, the 11 members of top management comprised the horizontal slice. Data analysis Interviews were semi-structured and based on questions which asked interviewees about the strategy of ALDI Australia and its processes.

Interviews were recorded and transcribed, then interview notes were analysed using NVivo. Two of the .

ALDI Supermarkets - Good Different - ALDI Australia

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Case study on the failure of Starbucks in Australia Name () Tutors () Course () Date () History of Starbucks Starbucks is the largest coffee chain operator in the world. Founded in North America in , Starbucks took a great leap in its growth in by having stores with a growing store count of an extra of percent a year.

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Aldi australia strategy case study
University of Georgia