Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Aldi moves beyond competing on price - Essay Example

Comments (0) Cite this document
In the current economic downturn environment, companies across the world are taking measures to increase efficiency yet at the same time cutting down cost of operation in order to sustain profitability. It is especially hard when consumers are highly cautious in their spending…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.2% of users find it useful

Extract of sample "Aldi moves beyond competing on price"

Download file to see previous pages In the process they have also changed competitive environment. In the face of such changing economy supermarkets like ALDI should respond to its environment, and take strategic actions to not only sustain growth but also improve on its competitive position in the industry.
The UK supermarket industry in 2008 accounted for retail sales of approximately £124.1bn and performed well compared to other industries despite market gloom (Verdict 2009). This combined output has been generated by the various categories of supermarkets - large grocery retailers, regional retailers, fascia group, convenience stores, LADs (limited assortment discounters), frozen food retailers and specialist retailers (Verdict 2009). Despite its financial size, the supermarkets industry is driven by the major large grocery retailers which account for 85 percent of its sales and four dominant supermarkets (Competition Commission 2008). Although, ALDIs direct competitors are Lidl and Netto, it is also competing with the other categories of retailers. Considering this scenario, ALDI which is a LAD must consider its competitive environment in order to devise strategic plans for sustainable growth.
To analyze the industry, Michael Porters (1985) Five Forces Model is being used to gauge the competitive environment. The Five Forces include buyers bargaining power; suppliers bargaining power, threats of substitutes; threats of new entrants; and the degree of rivalry among the firms. These shall be analyzed as follows:
The supermarkets are the price-takers according to the Competition Commission Report (2008) which means that the consumers have to buy at the price set by the supermarkets. The supermarkets compete based on prices which although allow consumers a wide range of retailers to choose from but the nature of the product (food) allows them to be ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Aldi moves beyond competing on price Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Aldi moves beyond competing on price Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from
(Aldi Moves Beyond Competing on Price Essay Example | Topics and Well Written Essays - 1000 Words)
Aldi Moves Beyond Competing on Price Essay Example | Topics and Well Written Essays - 1000 Words.
“Aldi Moves Beyond Competing on Price Essay Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Aldi moves beyond competing on price

Developing Organisational Capacity (ALDI)

...’, and which will give them an edge over competitors. Aldi could therefore, incorporate new training aspects into its training and development programmes in order to remain competitive. Customer satisfaction is yet another important strategic factor, which Aldi will consider during the implementation of its training and development programmes. Companies depend on their customers to make profits and compete favorably in the market. Therefore, Aldi has to consider customer satisfaction as a priority. Mainly, the employees of a company interact with customers. Therefore, employees are responsible for ensuring that they deliver quality services to customers, in order to...
10 Pages(2500 words)Essay

Aldi Tea Advertisement Analysis

...and occupation (Mullins & Walker, 2010). Product usage can also determine the targeted market segment in a way that there are people who will buy a product for its use irrespective of its price while there are those who will buy a product because of its price. Geographical location also means a lot in market segmentation in a way that the product should be able to fit within that particular geographical environment (Mullins & Walker, 2010). Another determining factor in the market segmentation is the benefit sought after in the product by its consumers (Kotler & Armstrong, 2010). In the Aldi tea case, the product targets old men since the old lady tells us it’s her husband who likes the...
3 Pages(750 words)Coursework

Competing SBU

...? Competing SBU Competing SBU The Hewlett-Packard Company is popular as HP and is one of America’s information technologymultinational corporations with its headquarters in Palo Alto, California. It focuses on the provision of hardware, software as well as services to its consumers within the scope of small- and medium-sized and large enterprises such as government customers in the health and education sectors. The company was developed a one-car garage in Palo Alto by Dave Packard and William Hewlett. For such a reason, HP has become a world’s leading Personal Computer manufacturer since 2007 fending off stiff challenge of Chinese manufacturer Lenovo (Reading, 2004). This paper will focus on three of its...
3 Pages(750 words)Essay

Aldi, Lidl and Netto Supermarkets

.... Aldi, Lidl and Netto should adopt price cuts and give offers in order to keep up with the competition from other players in the market like Tesco which is greatly competing with them. The current statistics reveals that the value line of Tesco products is lower making these gods cheaper than those offered by Aldi, Lidl and Netto (Leroux 2009). These supermarkets should now realise that customers are very informed and they a understand that discounts do not imply poor quality hence if the use of offering discounts as a marketing strategy is implemented, then the supermarkets are bound to increase their sales by a greater margin. Lidl property director has confirmed...
4 Pages(1000 words)Case Study

Wine Market (ALDI Group)

...ALDI Group Market Analysis Report An Industry Segmentation Survey of Wine Suppliers Executive Summary A global retail grocery conglomerate, ALDI Group extends its reach through partnership with winemakers and brewers around the world in order to bring consumers 'exceptional beers and wines at remarkably modest prices' (ALDI USA 2010) The Company's selection of wines are purchased from many of the world's best wine producing regions: Germany, France, Spain, California, Argentina, and Australia. National market coverage varies, and some ALDI's supermarkets carry select brand labels, while others carry wines and spirits native to the region more intensively....
12 Pages(3000 words)Case Study

Aldi supermarket

...of the firm’s products towards them of its competitors should be clear to the consumers. Another approach that Aldi would use for acquiring a sustainable competitive advantage would be the following: the firm could use social marketing, which ‘promotes behaviours that provide well-being for individuals or for society’ (Kapoor and Kulshrestha 2013, p.10). For example, Aldi could use its marketing campaign for increasing the awareness of people on the health consequences of the consumption of milk-based products. Of course, other strategies, for acquiring a sustainable competitive advantage would be also available to Aldi: for example, by decreasing the price of a...
4 Pages(1000 words)Essay

ALDI case analysis

...information technology in its operations improving efficiency and at the same time spending heavily on advertisements (Wells & Haglock, 2008). This one area where Aldi have failed making the company less known compared to Wal-Mart. In this case, Aldi ambitious plans to locate new stores globally should be guided more by the move of the main competitor. For instance, opening to areas where Wal-Mart has stores will open the company for competition. The competition will stimulate their growth rather than being in areas where there is no competition (Porter, 2008). According to Porters five forces model, there are factors that have likelihood of reducing the company overall productivity....
1 Pages(250 words)Essay

More with the Moves

... Study of the Picture Move 2: define significant parts and how they’re related)? This photograph is on a business premisesby the name F.M. Pointer the Old Reliable House Mover (Darnton 2). The painting is the menu of the type of fish available to their customers that day with their prices. On the other hand, the painting tries to convince the customer on the quality products they have so as to attract more of them just as the name “… the old reliable…” implies. Watermelon, Cucurbitaceae is strategically placed so that any passerby could not them easily. Significantly, two men outside the building and the other people inside are signs of a busy premise. The flowers are the beautification of the premise. At the same time... , there is a...
1 Pages(250 words)Assignment

More with the Moves

... Corn Planting, Jasper County, Iowa Move 2: Significant Parts and Their Relationship All the features of the portrait are in its foreground for which there are two horses towing a plough on which a man sits. The animals appear healthy, which makes them suitable for the ploughing process. The two horses provide just the needed thrust power that propels the plough to cut across the vast dry land that extends to the middle and the backgrounds of the photo. The man in the picture has a rod that he uses to manipulate the horses and force them through the rather difficult terrain and the hot weather. The large piece of land indicates just how much more the animals and the man have to keep working if they have to finish. (John 1). Move 4...
1 Pages(250 words)Assignment

Firms Making Competitive Moves

...Firms making Competitive moves Firms making Competitive moves This chapter intensively gives a discussion on the firms that make competitive moves addressing the advantages of being a first mover; the disadvantages attached with relevant examples. Alongside that, it addresses the disruptive innovation in which the companies can shape the market into which a new product has been introduced. When the companies are introduced in a new market, having a single store in gaining the brand recognition has been discussed as footholds. A strategy known as Blue Ocean Strategy in which the companies come up with new markets for their products instead of straining to enter in the existing market has as well been detailed in the chapter... which is...
2 Pages(500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Aldi moves beyond competing on price for FREE!

Contact Us