Aldi Case
A Case Study on Aldi
I. Introduction
The retail industry is a very competitive market. Organizations need to offer customers value for money. Customers want to pay for low priced but high quality products. With such hard competition it is necessary for organizations to know what their customers want. Aldi recognizes that its customers want value for money but do not want to compromise on quality. This case study will show how Aldi’s strategy led them to a competitive advantage. It will also show how Aldi provides quality products at reasonable costs. Aldi is a Germany-based hard discounter that has unique business practices. They use a lean approach to its business operations to offer its customers quality products at competitive prices. They concentrate on purchasing power; carrying only the most frequently purchased grocery and household items, of which most are ALDI select brands. As a result, they get the lowest prices from our suppliers and pass the savings on to the customers. They update operations eliminating every feature that increases cost and prices.
II. Objectives and Scope
Our group was given a task to do the case study analysis on Aldi. We need to find out how Aldi’s strategy leads to competitive advantage and how they achieve this strategy. We also need to find out whether Aldi’s low-cost strategy implies that they offer low quality products and why quality is important regardless of competitive strategy.For us to answer these questions, we will use different tools and techniques that are discussed in the class like the lean production.
III. Methods/Approach
Our group did group discussions through the use of social media. While we were discussing about the case, we were simultaneously doing our case study report through the use of google docs. We basically used the internet for reference. We Identified Aldi’s competitive advantage by identifying their Differentiation, Cost leadership and Response
IV. Analysis and
I. Introduction
The retail industry is a very competitive market. Organizations need to offer customers value for money. Customers want to pay for low priced but high quality products. With such hard competition it is necessary for organizations to know what their customers want. Aldi recognizes that its customers want value for money but do not want to compromise on quality. This case study will show how Aldi’s strategy led them to a competitive advantage. It will also show how Aldi provides quality products at reasonable costs. Aldi is a Germany-based hard discounter that has unique business practices. They use a lean approach to its business operations to offer its customers quality products at competitive prices. They concentrate on purchasing power; carrying only the most frequently purchased grocery and household items, of which most are ALDI select brands. As a result, they get the lowest prices from our suppliers and pass the savings on to the customers. They update operations eliminating every feature that increases cost and prices.
II. Objectives and Scope
Our group was given a task to do the case study analysis on Aldi. We need to find out how Aldi’s strategy leads to competitive advantage and how they achieve this strategy. We also need to find out whether Aldi’s low-cost strategy implies that they offer low quality products and why quality is important regardless of competitive strategy.For us to answer these questions, we will use different tools and techniques that are discussed in the class like the lean production.
III. Methods/Approach
Our group did group discussions through the use of social media. While we were discussing about the case, we were simultaneously doing our case study report through the use of google docs. We basically used the internet for reference. We Identified Aldi’s competitive advantage by identifying their Differentiation, Cost leadership and Response
IV. Analysis and