Strategy Analysis of Aldi

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Strategy Analysis of ALDI Executive Summary Aldi is a global retail giant that was established in the year 1914 with a small retail outlet in Essen (Germany), but it eventually grew to become one of the biggest names in the retail business. Today, the company owns over 9000 stores across 18 nations, and has a significant turnover of Euro 50 billion. The company's exceptional performance, amid intense competition, and even at the time of economic downturn, makes it worthwhile to understand its business strategies, as well as its competitive position in the market. This paper aims to critically analyse Aldi's strategies, and the resulting successes, it has achieved or likely to achieve. The paper also investigates its strategic shortfalls, through theoretical under-pinning. The paper utilises various theoretical models, beginning with Mintzberg's strategy formulation and implementation process, to appropriately evaluate Aldi's corporate and business strategies. Other theoretical frameworks, such as Porter's generic strategy, Ansoff's Matrix, Porter's five forces, Barney's VRIN, and Rumelt's strategy evaluation, have also been used to guide the research in the right direction. It is understood from the analysis that Aldi's business model and management structure is well suited to meet its goals and objectives. Additionally, its strategies, also appear to have a competitive strength and flexibility to changing social and regulatory framework. It is concluded that Aldi will able to grow further with its present business model. However, it has to avoid being too ambitious, in an attempt to overtake market leaders, such as Tesco. It is suggested that a gradual progression into organic food, and a long-term approach to e-commerce will further enhance business growth. Table of Contents 1. Introduction ------ 3 2. Analysis of ALDI's Strategies
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