Aldi Australia – Opportunities and Future Challenges Essay

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TMKT301 Case Study ALDI Australia – Opportunities and Future Challenges Student name: YANG SEN Student ID:20129032 Introduction ALDI is a discount supermarket chain founded in the 1960s by Karl Albrecht and Theo Albrecht. ALDI is composed by two parts, the north and south, respectively headed by the two brothers (Ingrid Bonn, 2005). North part over the years has gradually extended to Denmark, France, the Netherlands, Belgium and Luxembourg. South part enters the market of United Kingdom, Ireland, Austria, Australia and the United States. Over the last 40 years, ALDI rapidly expanded in the domestic market, now they have more than 4,200 stores throughout 16 states in German, over 4,000 shops in overseas. Now ALDI’s annual turnover about $40billion, it is Germany's largest food retail chain enterprises (Ingrid Bonn, 2005). ALDI opened its first store in Australia in January 2001. Now they successfully operated of more than 300 stores across New South Wales, Queensland and Victoria. In 2013, it plans to open new store in Western Australia and South Australia (Kate, 2013). How did ALDI get such huge success in Australia and what should it do for next step? In this report, we will discuss what ALDI’s strategic competiveness is. It’s External and Internal environment, and the Business level strategies used by ALDI Australia to achieve today’s success. Finally, based on those studies, some recommendations about how ALDI should develop in the future will be given. Strategic management and strategic competitiveness There is a joke about ALDI in Germany, the place that men go but never tell anyone is the red-light district, the place that woman goes, but never tells anyone is ALDI supermarket. This may be just a joke, but from it, we can see the one common characteristic people know about ALDI is the low price. In other words, low price is one of the strategic

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