Aldi Essay

977 Words Nov 4th, 2013 4 Pages
Individual Assessment
Case Study
ALDI Australia
Opportunities and Future challenges

By: Yusuf Yusuf

Tutor: Rylan Gan

ALDI is one of the major supermarkets in Australia and is well known for its low prices. We have to analysis and recommend ways to maintain the high level of growth and strategic competiveness in light of the challenges the sector is facing. In this report we will be outlining the areas of strategic management and strategic competiveness. What are the internal and external factors facing ALDI. Also we look at the business level strategies the company has in order to maintain its growth. At the end of the report we will offer
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80% of it are Australian made, this means they don't have to spend a lot on the products it sells from big brands like other supermarkets do nor ship them from overseas.
Bargaining power of customers: ALDI’s low prices attract a lot of customers who are just not fond on paying a lot of money on branded products. Where in ALDI they will be paying a lot less for the same product that is made by another maker. Many of ALD’s Household products are produce by well-known manufactures.
Threat of new entrants: ALDI’s Low price creates a barrier of entry for new competitors to entre the market. The low prices make it near impossible for new competitors to sustain and maintain with in the market.
Threat of Substitute products: ALDI provides substitute products to customers who are not willing to pay a lot more at other major supermarkets such as Coles and Woolworths who tend to have well branded named products.

Internal Environment
Just like the External Environment, the Internal Environment played a big role in ALDI’s performance and strategic intent and implementation.
Inbound Logistics: ALDI produces its own products that saves costs and prolongs its competitive advantage over its competitors.
Operation: With it’s low prices, ALDI is able to get back its customers again and again without it compromising the quality of service being provided.
Outbound Logistics: With ALDI being concerned about how the products being

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