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Strategic Management Unit 2 DB - Essay Example

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Their prices are lower and their demographics of customers consists middle class and people who are not well established. They also value the environment through…
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Strategic Management Unit 2 DB
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Aldi Vs Amazon Affiliation Aldi Vs Amazon Aldi Amazon Demographics Aldi concentrates more on consumers whose major concern is the cost of the product hence a low cost strategy. Their prices are lower and their demographics of customers consists middle class and people who are not well established. They also value the environment through provision of fresh foods.
Amazon is an online retailer popular for its convenience and many youth enjoy buying online since its fast and saves time. To ease and fasten delivery of their products to customers, they place there warehouses in densely populated areas.
Socio- cultural
Aldi on the other hand ensure quality goods at low cost to reassure customer a good health and safe environment as it has become their major concern.
Amazon has embarked on provision of fresh foods and quick delivery to meet consumer quality demands. They also target the internet age by selling more online, which is faster.
Economic
Aldi provides value for money to their clients by providing low costs which are achieved through negotiating with suppliers and encouraging clients to carry own bags.
Amazon products are more expensive but it has embarked on negotiations with the governments to reduce taxes hence reduced cost of their products.
Advertising
Aldi has limited advertising especially on television and mass media. Television has helped Aldi expand its business especially in USA.
Amazon undertakes many advertisements online and print media. Online advertising has helped Amazon in its e-grocery
Better positioned
With the changing trends in consumer behaviour where consumers are going online, Amazon is in a better positioned. With the raising concern on health issues, provision of fresh foods places Amazon in a better place as most people prefer organic food rather than GMOs, which are associated with cancer. Increased number of outlets also provides a great opportunity to clinch a larger market share
Recommended strategy for better positioned
Amazon needs to take into consideration the value for money. They should provide high quality goods at low cost to attract more clients. With fast purchase, fast delivery, low price and quality, there market position would be unbeatable.
Recommended "Corporate Citizen" action for the better positioned
With low cost and quality, the company will portray a good image to the community since it shows concern on their health and value for money. Through change, the community would see Amazon as a corporate citizen.
References
Hammond, R. & Berman, B. (2013). Your Success in the Retail Business (Collection). New
York: FT Press. Read More
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