Pestle Analysis Of Aldi In Australia

The reputation and recognition make Aldi attractive in the marketing activities and this aspect needs to be improved in the future to compete with both existing and forthcoming rivals. Meanwhile, the high buying power and costs control would help Aldi to diversify its products and increase market penetration to serve diverse Australian population. This leads to the reconsideration of Aldi’s current strategy of limiting product range to adopt other strategies as a number of differentiation strategies has been used by other

Despite the economical recession that the US currently faces, all around the country, ALDI continues to grow. ALDI is recently celebrating the opening of their 1,000th U.S. store in West Haven, Connecticut. At a time when other retailers are cutting back and the recession is deepening, ALDI continues to build new stores in 29 states nationwide and also around the globe.

As Aldi has already established itself as a large discount supermarket chain with over 10,000 stores in 18 different countries including Australia (2001), and holds a large market share in the grocery world due to its business culture and market leading initiatives. This report aims to provide the ALDI board of directors with:

As for external factors one of the external factors would be perhaps a new law that is given and affects directly or indirectly the business and that business needs to make some changes.

1.3 Physical Resources & Capabilities The ALDI brothers took over the family business of their parents in 1946. World wide expansion led to enormous growth. This comprises around 9800 stores (1000 to 1500 SQM each). The layout is simple with wide ails designed to refill shelves in the fastest, most convenient way {Brands, D. 2003}. They offer a small assortment of mainly fast-moving items (approximately 700 food – including a slim and organic line- and non food products). Small warehouses are located at the back of each store. Affiliates are equipped with limited technology such as intelligent cash systems high-end product concerning quality and price and bottle deposit machines. ALDI won the 2008 energy management award for great results in terms of cooling systems, illumination etc. Most stores have about 100 parking space and a shopping cart area near the entrance. ALDI has a long history which implies that they have gained great experience over the years. The location and layout of stores are designed to support fast and efficient supply and not especially aimed at customer needs. This is a weakness. Stores advantageously located as there are in convenient reach for consumers. Their product range is adapted to various consumer needs (organic, healthy living). The technological equipments are of high quality enabling fast operations at the checkout (ALDI’s staff are two times faster compared with other similar operations). This is

* Customer demand: Rather than basing on history and forecast sale of its products, the company should pay more attention in analyzing some uncontrollable factors such as inflation, recession, and currency exchange rate which may affect customers’ buying behavior.

The Home Depot’s most important external forces would likely be ecological, sociocultural, and economic. The most important forces for Ford Motor Company would likely be the legal, ecological, and economic forces. The forces that are the same for both companies are economic and ecological. The economy affects both companies because if the economy is in a recession and consumers are not purchasing as many products, neither company would be able to sell their products. For the Home Depot, some DIY projects may increase in a down economy. However, this is likely to be more than offset by the reduction in sales of durable goods (such as dishwashers) during a recession.

Economic factors – which include interest rates, economic growth, exchange rates, inflation and taxation changes (Nieman, G; 1998). The change the economy can have a major impact on the behaviour of the business. For example: inflation may cause a higher wage demand from employees (Herrigton, Kew & Kew; 2009).

Changes in external forces translate into changes in consumer demand for both consumer products and services. The company must prioritize to determined which factors may have the most impact and influence to the business. These factors are Political, economical, sociological environmental, and legal. Many of these factors are linked together. For example political, government legislation affect the economic factors (for example increasing the VAT). There are many models that can be used to analyze the external environment. LoNGPEST analysis examines the impact of each factor in local, national, and global aspect in the organization. It will help to where the company needs to focus and most important factors to have a sustainable and profitability in a long run(Hassanien, Dale, & Clarke, 2010; Johnson, Scholes, & Whittington). JD Wetherspoon LoNGPEST factors analysis illustrated in table format (see table 2.1). Identifying the key drivers for change is necessarily, this are the high impact factors likely to

Over the past few years technology has caused significant changes in the way enterprises conduct business.

Over the years, technology has become a major part for a business and for an individual as well. Technology has become so advance that it has made a major effect for the staff as well as for the customers. New technology has helped in many areas such as data and information storage, advertising, transportation and communication.

These factors influence the internal environment of an organisation and they help in identifying the past and the present of the company, It also provides a frame work for reviewing strategy position and direction of the company.

Changing the way energy in buildings is monitored, controlled and consumed can bring down CO2 emissions and reduce costs (Faucheux & Nicolaï, 2011) .

The Australian Supermarket Industry is the very hot topic that’s why very interesting topic now days. The Australian supermarket and grocery stores have a very severe competition in Australia mainly because of organizations competing in this mature industry are going towards cost reduction initiatives with competing advantage rather than product differentiation strategies, In other words business in this industry increase market share by charging lower prices while making reasonably fair profit. The growing popularity of ALDI – German based company of introducing its own label goods (products manufactured and sold under the retailers own brand) with low cost has forced the two giants –Woolworths and Coles to cut price

Factors that happen in the external environment are known as external factors or influences. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. The main factor that affects most business is the degree of competition - how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are: