Swot Analysis Of Aldi

Aldi appears to have been quite a success over recent years. For example, Aldi have approximately 9,000 stores across the world in 18 different countries. The company in 2014 (particularly in the United kingdom) made a profit of over 157.9 Million Pounds ($254.6 million). This has almost tripled from 2012. This means that in Australia, the company now poses as a large threat to the larger supermarket companies like, Woolworths and Coles. This is because of how low Aldi food prices are. The company offers similar foods to the other supermarket companies but at a significantly lower price.

ALDI claims that when you shop at ALDI, you can always count on finding products that are consistently equal to or better than the top national brands in quality and taste, for up to 50% less than at traditional grocery stores. ALDI claims that by shopping at their stores, one can save an average of $115 a month on family’s groceries on staples like fresh produce, milk, bread and eggs.

Serving as the number one source of our plastic use, companies opt for plastic containers because it's easy, feasible, and convenient. Food packaging alone makes up for 30-40% of landfills with much of that plastic being carried into the oceans. Going off of this, a new concept that's quickly becoming popular are package free grocery stores. These cost- effective grocery stores have everything you could possible need in bulk form and consumers bring glass or reusable containers, or cloth bags and fill them with the food they need. First popping up in cities like Berlin, Vienna, and Barcelona, many are finding this a more sustainable and eco-friendly option resulting in these sort of grocery stores quickly spreading across the ocean, with the first one in the United States expected to open in Brooklyn, New York. Business operators are extremely optimistic that this could serve a very impactful solution to getting rid of unnecessary plastic. (Che Jenny).

“Bag2bag” program is the most important one among them. Kroger reused more than 1billion pounds of corrugated cardboard in 2007. It resulted in a 14 percent increment over the previous year. In majority of the stores plastic bags, dry-cleaning bags and plastic shrink-wrap can now be reused via Kroger’s recycling program. 9.1 million pounds of plastic recycled from the stores and distribution centers as a result of this program. The grocery bags used in many retail departments contain 25% reused content as a direct consequence of “Bag2bag” program. (Kroger Sustainability Report,

(Business case studies, no date, p.6) provides evidence that Aldi uses an eco friendly system which reduces the emission of harmful gases to the environment. Moreover, Aldi minimizes energy wastage and recycles the waste produced. Aldi also takes part in many CSR activities for the betterment of the community.

IKEA pursues sustainability in a big way which is why competitors could learn from their company. IKEA has a wide variety of products under its label. Today, 71% of all IKEA products are recyclable, made from recycled materials, and or both (A.Jefferies, 2009). In addition to this, Ikea recycles 84% of waste generated in its stores. IKEAs sustainability focuses on four components: products and materials, suppliers, climate change, and community involvement. IKEA bases

“Globally, we throw out about 1.3 billion tons of food a year, or a third of all the food that we grow” (Sengupta). In the United States 33% is from agriculture, 11% from postharvest, 10% from processing, 8% from retail, and 39% from consumption. Consumers are the majority of our waste, but there's not a lot of ways to prevent this.

This screenshot is about how Aldi is opening more shops combined with Tesco, Sainsbury’s and Morrison. Aldi’s expansion plan is equal to roughly 60 to 80 new shops. It wants to double the size in the UK to 1,000 shops by 2022. Moreover, this will affect supermarkets such as Sainsbury’s, Morrison 's and Tesco because they will make less profit, which is a downfall. This means that Tesco, Sainsbury 's and Morrison 's will decrease the prices of the products to enable they appeal to the customers.

The ALDI brand has many strengths including sales volumes, providing nutritional products, discounts are passed on to consumers, and fast efficient shopping. “ALDI is the world’s largest discount store operator by sales and has flourished for more than 40 years without stocking major brands,” ( news.yahoo.com) The fact that ALDI is the world’s largest discounter without having to pay the price of carrying major brands is an impressive feat. The brand capitalizes on this in the United States with “ about $8 billion in annual sales and is growing from 15 to 20 percent per year,” ( bloomberg.com) .

In the realm of waste reduction, Kroger’s recycling program enabled them to recycle over one billion tons of corrugated cardboard in 2007. Efforts have increased since then. They have reduced the use of plastics and paper by introducing and encouraging the use of reusable bags. Additionally, the reusable bags themselves are made from 25% recycled material. Kroger has also reduced paper usage by using more electronic and digital communications and some paperless administration operations. This has saved over 91 million sheets or 455 tons of paper since inception. Kroger also reduced the waste of food by rescuing food prior to spoilage and donating what is termed “not for retail” food.

Technology is a major macro-environmental variable which has influenced the development of many of the Aldi products. The new technologies benefit both customers and the company: customer satisfaction rises because goods are readily available, services can become more personalised and shopping more convenient.The launch of the Efficient Consumer Response (ECR) initiative provided the shift that is now apparent in the management of food supply chains (Datamonitor Report, 2003). Aldi stores utilise the following technologies:

In other efforts to be environmentally conscience, PepsiCo has reduced the packaging weight of their products by more than three hundred fifty million pounds, which exceeded their goal by more than twenty percent. In addition, PepsiCo has recycled approximately ninety-one percent of the waste, allowing less than nine percent to be sent to landfills. In some of the company facilities around the world as little as one percent of waste is sent to the landfills. Recycling of packaging is another commitment of PepsiCo. This commitment is being accomplished by using materials that are compatible with readily accessible recycling systems. (Environmental Sustainability)

Aldi does not have a published vision or mission statement. However there is a clear set of values and business philosophy which they adhere to. This philosophy is outlined by the statement which it continuously uses, ‘Top quality at incredibly low prices – guaranteed’. In its small levels of advertising Aldi elaborates on this philosophy by stating its five main principles; huge savings, excellent quality, outstanding value, superb specials and buy with confidence. These five principles were quoted as the ‘Aldi Pledge’. This outlines there key values namely to offer their customers high quality products at low prices. This is achieved by their low cost operations, which is well known and evident throughout

Associated British Foods PLC is a British multinational food processing and retailing company which was founded in the year 1935 by a Canadian named Willard Garfield Weston and from that date the rest is history. (Grace’s Guide, 2016).

Although organic foods are found in nearly every grocery store, the average person is unable to differentiate between organic and non-organic food products. Many consumers purchase organic products in the hopes of gaining positive health benefits. (Chhabra, Kolli, et al “Organically Grown Food Provides”) “The current demand for organic foods outstrips the domestic supply, causing retailers in the United States to import $2 billion worth of organic foods annually.” (Crandall, Seideman, et al. ”Organic poultry: Consumer perceptions”) In this paper, I want to define what it means for food to be organically produced, while also exploring the requirements necessary to deem a product ‘Organic”.