Introduction Organizational success and failure depends on its competences and ability to apply effective growth strategies. The report provides suggestions for initiatives to be taken by Aldi for growth of its business in Australian market.
Suggestions for Initiatives to be taken for Aldi’s business growth Organizational sustainability and profitability depends on its ability to apply effective strategies in response to the market environment in which it operates (Chernev, 2011, p.20). According to Igor Ansoff, the two key dimensions based on which the organizations look for growth are the customers and products (De Wit & Meyer, 2010, p.78). Ansoff developed a growth matrix and stated that choices of the organization to expand their business can be categorized in to four for existing or new customers and existing or new products (Yarger, 2012, p.46). The four different strategies identified by Ansoff are market penetration, market development, product development and diversification (Yarger, 2012, p.46). Market penetration strategy refers to the strategies used by the organizations to increase their market share in the existing market segment (Scott, 2014, p.24). This strategy is applied by organizations operating in a market having little or no competition (Scott, 2014, p.25). Market development strategy refers to a strategies, which organizations implement to offer existing products and services to a new market segment and is aimed at …show more content…
Ansoff has identified four growth strategies, which enable organizations to expand its business and generate increased revenues based on the existing products and services and market segments. Aldi has targeted the price-conscious customer segment in the Australian market as it had limited competition. Using market penetration and product development it can further increase its market share and gain their loyalty for
Suggestions for Initiatives to be taken for Aldi’s business growth Organizational sustainability and profitability depends on its ability to apply effective strategies in response to the market environment in which it operates (Chernev, 2011, p.20). According to Igor Ansoff, the two key dimensions based on which the organizations look for growth are the customers and products (De Wit & Meyer, 2010, p.78). Ansoff developed a growth matrix and stated that choices of the organization to expand their business can be categorized in to four for existing or new customers and existing or new products (Yarger, 2012, p.46). The four different strategies identified by Ansoff are market penetration, market development, product development and diversification (Yarger, 2012, p.46). Market penetration strategy refers to the strategies used by the organizations to increase their market share in the existing market segment (Scott, 2014, p.24). This strategy is applied by organizations operating in a market having little or no competition (Scott, 2014, p.25). Market development strategy refers to a strategies, which organizations implement to offer existing products and services to a new market segment and is aimed at …show more content…
Ansoff has identified four growth strategies, which enable organizations to expand its business and generate increased revenues based on the existing products and services and market segments. Aldi has targeted the price-conscious customer segment in the Australian market as it had limited competition. Using market penetration and product development it can further increase its market share and gain their loyalty for