Operations Management Essay examples

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NAME: MITCH B. MENDEZ DATE: NOV. 26, 2015 CASE STUDY: ALDI 1. How does ALDI’S strategy lead to competitive advantage? How does the company achieve this strategy? * A competitive advantage is one that distinguishes a firm or a business from the competitors in the minds of the customers. It also refers to the state or condition that make a business more successful than the businesses it is competing with, or a particular thing that makes it more successful such as having a higher sales through offering low or affordable goods and services. Most of the businesses operate in competitive markets: businesses have to take on and see of rivals or competitors.ALDI, a…show more content…
Second, because ALDI stores are typically small they chooses inexpensive or affordable locations usually outside town or on side streets that can minimize the overheads costs that they can spend . The size doesn’t even matter as long as they can conduct their operations and provide goods and services to its valued customers. Third, they display their products on pallet rather than on shelves. They also have cross trained employees to conduct the operations within the entity, to operate, check and also replace the pallets. Lowering the price of their inputs is a way to decrease the cost. Through the methods that they use to follow they are able to achieve their low cost strategy that serves as their strength among their competitors. 2. Does ALDI’S low cost strategy imply that the company offers low quality? Why is quality important, regardless of competitive strategy? * No. ALDI’S low cost strategy does not imply that the company offers low quality of product but rather a high quality despite the use of low cost in producing the said product for they acquire good quality products to the vetted suppliers. Even though they minimizes each of the costs that they use in developing and producing a product they still ensure that they produce it with high quality to offer good quality product to its valued customers. Quality of the product is important to ALDI which guarantees the products are sold with a no questions asked money back guarantee. The proof why low

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