The details of the discussion regarding ALDI: The Dark Horse Discounter business models and strategies as follow with the questions below.
1. What is your assessment of the competitive forces in the grocery retail industry?
The assessment of the competitive forces using Porter’s five forces of competition framework that allow me to interpret comprehensive analysis based on suppliers, buyers, industry competitors, substitutes, and potential entrants in the market.
The bargaining power of supplier would not stand a high power in a grocery retail industry due to the low cost of …show more content…
The differences regarding store operations depend on the country; however the main business strategy as “frugality” is not an option, but a fundamental Aldi’s business model all over the stores. Most of the Aldi stores have refrigerated and frozen items that save the display space in the stores, and some stores carry alcohol such as wine and beer that give the higher margin and less inventory loss and carrying costs. Aldi’s frugality continues on their payment method that is only accepting cash or debit. Even though Aldi’s international expansion and rapid growth on stores, the credit cards are not accepted in the stores due to the higher bank charges on credit card transactions than debit or cash transactions. As stated “save time signing the paper or receipts on purchases” back in early