Competitive Strategy Of Aldi

Decent Essays
The Australian grocery retail market is very competitive and faces strong pricing wars amid the supermarket giants. The strategic industry analysis and competition in the market is due to the factors including product development, supply chain factors along with pricing. The competition in the industry is aggressive and to maintain the market share everyday new strategies are being implemented. The competitive landscape impacts the market and therefore the market share of Coles reduced in the year 2016. Competition is fierce in terms of value sales, expansion and price wars. To meet the change and to gain market share Coles and other retailers are following similar actions as followed by Aldi. The competition is high because the industry is…show more content…
The retailing in Australia have changed and impacted the lifestyle of people. The lower prices of goods along with value are the major factor that is influencing the market. The Australian grocery retail market is highly concentrated and is based upon the major player Aldi. As per the competitive analysis it is noteworthy that the duopoly within the retail industry is impacting the retail industry. The suppliers, employees and the changing strategies of Aldi is majorly impacting the industry competition. Industry is mainly dominated by the three major players and the intention of the supermarket is to meet the Australian growth target through meeting the consumer landscape. The competition is high in the Australian market as the intention is to attain market through becoming one of the cheapest grocery retailers along with ensuring savings so that profitability is expanded. The price promotion pressure is high in the supermarket industry leading to fierce competition. As per the data collected it is noted that Coles and Woolworths in the year 2017 rakes almost 70% of the grocery market in Australia (Choice,…show more content…
In Australia, four biggest players namely Coles, Woolworth, Aldi and Wesfarmer represent about 80% of total industry sales. Among them Coles and Woolworths represent about 60% of total industry revenue. Aldi’s robust growth has enhanced the industry concentration in the last five years. Apart from that German supermarket brands such as Lidl and Kaufland presently hold about 8.9% of the grocery retail market in the nation. The continuing competition within the grocery retailer network continues to influence the entire industry. Although grocery retailers in Australia continues to be dominated by supermarkets such as Woolworths and Coles, in the year 2016 discounters chain Aldi continued to challenge the status of both organisations. Through the low price strategy of Aldi, counting its inclusive private level range, the position of Woolworths and Coles has been challenged with many customers presently shopping at Aldi stores (Euromonitor, 2016). As a consequence, the supermarkets in Australia have appeared in a price rivalry throughout majority of assessment period which has influenced the performance of grocery
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