Aldi Is The Main Attraction Of Aldi

1144 Words Oct 29th, 2015 5 Pages
ALDI is a privately owned discount supermarket that operates worldwide. It is known for distributing off-branded, discounted products, which is the main attraction of ALDI. Because of this feature, ALDI has a very consistent and loyal customer base, which has allowed it to be a successful corporation since its inception in 1946. ALDI currently operates in over 10,000 locations in 18 countries, and because of its unique strategies, it continues to be successful all over the world. ALDI’s success in the supermarket industry can be analyzed by using Porter’s Five Forces, which includes Bargaining power of customers, threat of substitutes, bargaining power of suppliers, threat of new entrants, and rivalry.
ALDI is a supermarket chain that markets value and discount to its customers. Buyer bargaining power refers to the amount of leverage customers have on the company to provide better service, better products or lower prices. Customers of ALDI have a relatively low bargaining power relative to other grocery stores. Reason being, this chain offers very low prices because it distributes custom-branded products that are exclusive to the chain. Because of this, ALDI does not need to have exorbitantly high mark-ups to generate a strong profit. Customers have very low bargaining power for prices because the prices of its products are remarkably low compared to other products. Another reason ALDI customers have a low bargaining power is because it is known for high quality customer…

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