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Strength And Weaknesses Of Aldi

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Strengths of Aldi include their low cost strategy that differentiates them from the competitors as well as selling top quality products. The low costs are due to low operating costs as ALDI has made deals with different suppliers, purchasing straight from the manufacturers, adding their own label to it, hence decreasing the ‘brand cost’ of the products. For example, customers are purchasing Heinz ketchup, that produced in the same manufacturing plant but it just contains an ALDI label, which makes it cheaper to purchase but the quality stays the same. ALDI has a strong presence in Germany with over 2500 stores and their presence here in the U.S. keeps on growing. Another strength is that there is only four employee roles in ALDI. These positions include store manager, assistant store manager, store assistant, and caretaker. This offers an advantage due to the fact that it is easier to delegate, train, and assign mandatory tasks for each staff member. Weaknesses of ALDI would be that they do not have a large set of staff in-store available to help the customers out if needed. This means that their in-store customer service isn’t as high quality. Also, oftentimes people associate low prices to low quality and avoid going to stores like that. Aldi is still relatively small compared to other U.S. grocery chains. Lastly, one of Aldi’s weaknesses is that it offer private label brands that can be easily overtaken by the success of established brands in the marketplace.

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