Aldi's Competitive Advantage

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Upon looking at the external environment from Aldi it was clear that our key point was with regards to the threat of substitutes as customers are now inclined to change supermarkets frequently. This information has provided us with great insight on how Aldi can achieve competitive
But we now move onto competitive advantage, as a group we have established that Aldi are a budget food retailer selling to the mass market they are currently trying to compete with the ‘big four’ in the UK. In order to sustain and achieve further current competitive advantage we believe that they should have a mixed approach to competitive advantage and should focus on mainly differentiation and a cost based strategy. To do this will look at two approaches the Positioning
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Resource based view is an important part of how a firm achieved competitive advantage and we will use it alongside the purposive approach to illustrate how we think Aldi can achieve competitive advantage. Resource based view is based upon a firms core competencies which include four attributes. Valuable attributes we discounted this attribute because Aldi is already strong in this area of creating value through its superb supply chain and this does not match our competitive strategy of being the cost leader and differentiating themselves from the competition which we think that just having valuable attributes does not suffice. In addition to this we decided not to include In-Imitable attributes likewise with valuable we think that Aldi already utilises its resources and competences to have in-imitable attributes however this does not truly differentiate them in the …show more content…
Firstly rare attributes, a company achieves a rare attributes if no firm can get achieve such as recently Aldi winning the U.K suppliers fairest retailer to work with. Aldi must maintain this to further differentiate itself from the public perception of damaging the U.K farming industry. Finally Non substitutable attributes, Aldi currently has an item in their stores which there is no equivalent this is that they are the only retailer to sell 100% British Red Tractor certified lamb mince (Aldi 2016). In order for Aldi to further differentiate itself it needs to continue this and also further identify food items that no other industry leader stocks. This in turn will further achieve our strategy for Aldi to be the Cost Leader but maintain

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