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Essay on Swot and Pest Analysis of Aldi

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Vision and Mission Statement 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…show more content…
In contrast the bargaining power of suppliers is fairly high, predominately due to the weight of suppliers market share, for example Inghams supplies thirty per cent of all Australians poultry. Threat of Substitutes (Low) and Threat of Competitors (High) High employment rates and a family culture are the main contributors to the lack of substitute services. Possible threats such as restaurants or takeaway stores do exist; however, their threat is minimal. Conversely, the intensity of rivalry among competitors is strong. In terms of market share it is extremely difficult for Aldi to penetrate the dominance of Woolworths and Coles, especially considering the current price war breaking out. Internal Analysis (Strengths and Weaknesses) Resource Analysis - Tangible resources A firm’s resource's includes all assets and other valued items which can be split into tangible resources and non-tangible resources. Aldi’s financial assets include its cash account. This has been reduced due to the companies ‘Just in Time’ inventory policy and the firm’s ability to borrow is high due to its reputation. However Aldi is a privately owned company and the disadvantage of not being able to require large funds from this is obvious. Aldi’s physical resources, in Australia, include its Morden plant, a 366,000 square feet distribution centre. Other physical resources include its retail site and other
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