Aldi Swot Analysis

1456 Words 6 Pages
When the Albrecht family first opened their stores in 1913 Germany they were in a tough market. Because of fierce competition they had to keep prices low if they wanted to stay afloat, let alone make a profit. Because their family understood the value of cutting costs without compromising quality, they successfully opened their first store. This achievement eventually allowed the family to put their name on over 100 store fronts. Later on the name on the store changed from Albrecht, to Aldi. Even after the name change, Aldi has had the same way of doing business for nearly 40 years. Their goal is to provide high quality products with everyday low prices. With the opening of their first store in 1913, Aldi was the first discounter in the world. …show more content…
They are also successful because of their strong brand protection. They will come together with brand suppliers to create more strategic relationships, so they solve problems and develop plans together. They collaborate to create exclusive brand products, and to ensure quality and to make sure that they taste the same or better than the national brand, they periodically test their products. Aldi’s value chain also leads to consistent success in their goals of ensuring high quality and low prices. They focus on efficiency in every link of the chain. For inbound logistics they establish long-term partnerships with suppliers that “are committed to meet quality standards and are responsive to changes in consumer needs.” In order to maintain these partnerships, Aldi makes sure to: “pay bills on time, not to request returns due to purchasing decisions, and utilizes centralized distribution to eliminate the need for store deliveries.” Focusing on outbound logistics, Aldi makes sure that the products are of the highest quality by testing their products through third-party consultants. They also reduce costs by staying open only during peak shopping hours and reducing unnecessary labor such as removing products from the box and collecting carts. Aldi makes sure their sales and marketing are efficient by avoiding costly media promotion and instead relies on its satisfied customers to spread the word, as well as utilizing an efficient centralized marketing …show more content…
One of the main reasons for this is because the products that they are selling are not unique. All of the other supermarkets are selling them too. These main products at Aldi’s are also belong to the same big brands that are also at the other supermarkets. Since customers have the ability to go to other stores to get the same products, this causes the threat of losing some of their consumers to other stores.One change that Aldi could incorporate into their business process is the implementation of a reward system for their customers. This reward system could take many forms. For example, customers could earn points for every dollar that they spend at Aldi stores. Once they reach certain point values they are eligible to receive discounts on future purchases. The higher the point value the higher the discount for the customer. This system is cost-focused for Aldi because it is relatively cheap to implement and maintain. It would not only bring in new customers, but it would also encourage current customers to do more of their shopping at Aldi to earn higher rewards, bringing in more revenue. The reward system will also allow them to maintain their low prices keeping their customers satisfied.With this new added bonus, customers will have more of an incentive to choose Aldi as their shopping place rather than its competitors. Because of this it would work to lower the impact of competitive rivalry for Aldi. This would allow

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