Problem 1
Answer Aldi case study refer (page: 82) discussion questions How does Aldi strategy lead to a competitive advantage? Aldi tried to implementing his duty leading strategy competitive advantages, Since opening its first store in 1913, Aldi has established itself as a reputable retailer operating in international markets including Germany, Australia and the U.S. Aldi has over 7,000 stores worldwide, Aldi from its competitors is its competitive pricing strategy without reducing the quality of its products. In fact in some cases Aldi’s products are 30% cheaper than those offered by its competitors. Aldi can do this because the business operates so efficiently. Good organization gains achieved without loss of perceived benefits. Competitive advantage through a low-price strategy might be achieved by focusing on a market segment and having the most efficient operation management is crucial to survive. The food retail of Aldi’s industry is a highly competitive market. Because organizations need to offer customers value for money. Customers want the best quality products at the lowest possible prices. With such tough competition it is vital for organizations to understand what their customers want. Aldi understands that its customers want value for money but do not want to compromise on qualit
1|Page
Due date 24/02/2013
How does the company achieve this strategy? The classical business concept of Aldi that had proved to be successful in his own country and many other countries had to be altered in UK and Switzerland due to a set of reasons. As we know the main business model Aldi practiced consisted of offering low priced limited range of products that was achieved by compromising the quality of customer service and shop premises. However this strategy did not prove to be successful