Essay about Strategic Analysis Of ALDI

3641 Words Nov 19th, 2014 15 Pages
Strategic Analysis of ALDI
Table of Contents

1. Introduction 2
2. Brief Background on Aldi 3
3. Market Identification of Aldi 4
4. Environmental Analysis 5
4.1 PESTEL Analysis 6
4.1.1 Political factors 6
4.1.2 Economical factors 6
4.1.3 Social and cultural factors 7
4.1.4 Technology factors 8
4.1.5 Environmental Factors 8
4.1.6 Legal factors 9
4.2 Key Trends affecting the industry 9
5. SWOT Analysis 10
5.1 Strengths 10
5.2 Weaknesses 11
5.2 SWOT Table 12
6. Identification and evaluation of the Strategies pursued by Aldi 13
6.1 Strategies implemented by ALDI 13
6.2 Critical Evaluation of the Strategies 14
7. Conclusion 16
8. References 16

1. Introduction

Albrecht Discount Inc., globally known as Aldi, is a German based family owned
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It earned profit of 157.9 million in 2012 from 70.5 million in 2011 and sales increased from 2.7 billion in 2011 to 3.8 billion in 2012. It opened 34 new stores that were crucial in its strong performance in 2012 (Steiner, 2013).
Aldi Ireland revenues increased by 30.7% in 2012 outstripping its German rival Lidl, opened 3 more stores, in addition to 40 stores in Ireland that are being refurbished or extended. Together Lidl and Aldi control 12.5% of Irish grocery market (Fitzgerald, 2013).
Aldi United states’ annual revenue is $68,700 million (U.S) with 1400 stores in 36 states employing 11,000 employees (Grocer.com. 2013).
Aldi SUD in Germany consists of 31 independent companies, with more than 1820 branches, employing more than 33,600 employees (Aldi Facts and Figures, 2013).
Aldi Nord operates in Eastern, Western and Northern Germany with around 2500 outlets (Aldi Nord, 2013)
4. Environmental Analysis

International grocery retailing industry is facing intense competition and become a real battleground, retailing giants are offering plenty of price discounts to attract customers, that is seriously impacting their suppliers and pressure to regulate the sector is growing (Fitzgerald, 2013). The following section analyzes in detail the opportunities and threats the retail grocery industry is facing through PESTEL Analysis.
4.1 PESTEL Analysis

4.1.1 Political

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