aldi logistics
ALDI CASE
1.How does ALDI 's strategy lead to a competitive advantage ? How does the company achieve this strategy?
ALDI gains a competitive advantage by several factors.
ALDI offers its consumers an excellent value, so selling good quality products at a low price, thus obtain good market share, for example in Germany has a share of about 40 %. With this strategy ALDI and are available to any consumer purchasing power regardless of social class or so quality is not equal to expensive and that manages to attract new customers. ALDI offers a limited number of products compared to other supermarket chains, ALDI sells between 700 and 900 products. ALDI usually sell two brands of each product and settle in areas away from the city center and in the periphery, all of these factors allows them to gain a competitive advantage by reducing costs.
The company has managed to carry out this strategy through: Using economy of scale that allows them to purchase large quantities of products at lower prices.
The value that attracts consumers and establish a relationship of loyalty and customer retention.
Standardization of their establishments. It also establishes its stores in areas where the cost to settle is lower, in the periphery.
Reduced number of products and few markings.
2. Does ALDI's low cost strategy imply the company offers low quality? Why is quality important, Regardless of competitive strategy?
One of the main reasons that ALDI has been successful is to offer high quality products at low prices. Although all ALDI operations are directed towards cost reduction, quality is important for ALDI supermarkets, so low - cost strategy does not affect their products.
Quality is important because it attracts customers. Quality reduces costs and therefore prices through the scales of experience as a business will experience increasing costs less to develop the products and can devote more
1.How does ALDI 's strategy lead to a competitive advantage ? How does the company achieve this strategy?
ALDI gains a competitive advantage by several factors.
ALDI offers its consumers an excellent value, so selling good quality products at a low price, thus obtain good market share, for example in Germany has a share of about 40 %. With this strategy ALDI and are available to any consumer purchasing power regardless of social class or so quality is not equal to expensive and that manages to attract new customers. ALDI offers a limited number of products compared to other supermarket chains, ALDI sells between 700 and 900 products. ALDI usually sell two brands of each product and settle in areas away from the city center and in the periphery, all of these factors allows them to gain a competitive advantage by reducing costs.
The company has managed to carry out this strategy through: Using economy of scale that allows them to purchase large quantities of products at lower prices.
The value that attracts consumers and establish a relationship of loyalty and customer retention.
Standardization of their establishments. It also establishes its stores in areas where the cost to settle is lower, in the periphery.
Reduced number of products and few markings.
2. Does ALDI's low cost strategy imply the company offers low quality? Why is quality important, Regardless of competitive strategy?
One of the main reasons that ALDI has been successful is to offer high quality products at low prices. Although all ALDI operations are directed towards cost reduction, quality is important for ALDI supermarkets, so low - cost strategy does not affect their products.
Quality is important because it attracts customers. Quality reduces costs and therefore prices through the scales of experience as a business will experience increasing costs less to develop the products and can devote more