Aldi 's Performance Based On Their Current Strategy

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1. Summary Evaluation ALDI, a major German based retailer which operates 9,000 stores worldwide, has to account for such efficient strategies so that it has a competitive edge over other player. ALDI is Australia’s only supermarket operator that provides a range of exclusive brand, essential groceries at the lowest possible prices (ibis). The report is a brief overview of ALDI’s performance based on their current strategy. The report will analyze ALDI’s strategy to perform effectively within the highly current competitive market. The report will identify the mission and fundamental objective of the company. Furthermore, the report draws attention to the analysis of strategies of ALDI and evaluates the performance of their current strategy…show more content…
According to Survey by national consumer organization, CHOICE (2014), a comparable basket of goods at ALDI is 25% cheaper than at one of the MSCs. ALDI is estimated to hold 9.1% market share in 2015-16 as compared to other grocery stores (ibis). In terms of the strategy of ALDI, ALDI focus on reducing costs to the customer in such a manner that customer is convinced to continue shopping. However, on further analysis, the organization illustrates a differentiating strategy and prefers to distinguish itself from other major retailers the likes of Coles, Wesfarmers and Woolworths. For example, ALDI provides weekly specials like on gardening, camping, kids, and kitchen with discounted offers. ALDI is a low-cost player that stocks a less variety of popular grocery items. Over past five years, an incredible achievement contributes to ALDI 's rapid growth to which consumers have responded positively (ibis). Therefore, it can be said that in terms or corporate strategy, the organization has characteristics of both a cost leadership strategy as well as a differentiation strategy. ALDIs Generic Strategy Figure: Porter’s generic strategies for ALDI’s Strategy: Integrated Cost versus Differentiation Strategy Cost Leadership Strategy ALDI, mainly target middle class people whose main factor in buying is low price for quality product, pursuing cost leadership strategy (Bonn, 2010). It is used to for reducing operations cost

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