1. How Does Aldi’s Strategy Lead to a Competitive Strategy Advantage? How Does the Company Achieve This Strategy?

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Efficiency gains achieved without loss of perceived benefits. Competitive advantage through a low-price strategy might be achieved by focusing on a market segment and having the most efficient operation management is crucial to survive. The food retail of Aldi’s industry is a highly competitive market. Because organizations need to offer customers value for money. Customers want the best quality products at the lowest possible prices. With such tough competition it is vital for organizations to understand what their customers want. Aldi understands that its customers want value for money but do not want to compromise on quality. This case study will demonstrate how ALDI uses a lean approach to its business operations to offer its customers quality products at competitive prices. ALDI core purpose is to ‘provide value and quality to our customers by being fair and efficient in all us do’. Everything Aldi does is focused around giving its customers value for money. Through being efficient and cutting costs Aldi can then invest profits back into the business. They can then be used to further meet its business objectives for growth. Through being efficient and cutting costs ALDI can then invest profits back into the business. They can then be used to further meet its business objectives for growth. Efficiency is not something that is achieved overnight. Lean thinking is a continuous process that constantly enables ALDI to improve the way in which it meets its business objectives. This enables ALDI to develop an ambitious investment program to develop new properties and suppliers as well as to provide benefits for employees.
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