Aldi Australia Strategy Case Study
ALDI AUSTRALIA CASE STUDY 1
ALDI AUSTRALIA CASE STUDY
Claire Creedon 08422991 Laura Ensor Aisling Flynn 08352992 08371687 _________________________ _________________________ _________________________ _________________________ Tutor: Paschal McNeill Gerard Murphy 08660085
We declare that all materials included in this case assignment is the end result of our own work and that due acknowledgement has been given in the bibliography and references to ALL sources be they printed, electronic or personal. All group members contributed equally to this work
ALDI AUSTRALIA CASE STUDY 2
Table of Contents
Question 1 Question 2 Question 3 Appendix 1.1 Appendix 1.2 Appendix 2.1 Appendix 2.2 Appendix 3.1 Appendix 3.2 Bibliography
3 4 10 13 13 14 15 16 17 18
ALDI AUSTRALIA CASE STUDY 3
Q. 1. A company can outperform rivals only if it can establish a difference which it can preserve (Porter 1996). It must achieve the lowest costs relative to its competitors or create a unique or superior product for which customers are willing to pay a premium price (Porter, 1980) [See Appendix 1.1]. Porter theorized that there are 3 generic strategies; costleadership1, differentiation2 and market segmentation3; defined along two dimensions: strategic scope and strategic strength (Porter, 1980) [See Appendix 1.2]. A company only be (Porter, 1980) and rendered unviable (Thornhill & White, 2007). ALDI Australia (ALDI above average returns. Its strategic , undoubtedly follows a cost-leadership price consumer. strategy. Its strategic strength is its ability to offer incredibly low prices, while maintaining It is important to note that a cost leader is not necessarily a price leader4. As a new entrant to this mature industry, ALDI needed a unique value proposition that enabled it to compete with Groceries of the highest quality at (Osgeowitsch & Goelz, 2011). Thus, it is clear that ALDI is also following a price-leadership strategy, passing its cost-leadership
ALDI AUSTRALIA CASE STUDY
Claire Creedon 08422991 Laura Ensor Aisling Flynn 08352992 08371687 _________________________ _________________________ _________________________ _________________________ Tutor: Paschal McNeill Gerard Murphy 08660085
We declare that all materials included in this case assignment is the end result of our own work and that due acknowledgement has been given in the bibliography and references to ALL sources be they printed, electronic or personal. All group members contributed equally to this work
ALDI AUSTRALIA CASE STUDY 2
Table of Contents
Question 1 Question 2 Question 3 Appendix 1.1 Appendix 1.2 Appendix 2.1 Appendix 2.2 Appendix 3.1 Appendix 3.2 Bibliography
3 4 10 13 13 14 15 16 17 18
ALDI AUSTRALIA CASE STUDY 3
Q. 1. A company can outperform rivals only if it can establish a difference which it can preserve (Porter 1996). It must achieve the lowest costs relative to its competitors or create a unique or superior product for which customers are willing to pay a premium price (Porter, 1980) [See Appendix 1.1]. Porter theorized that there are 3 generic strategies; costleadership1, differentiation2 and market segmentation3; defined along two dimensions: strategic scope and strategic strength (Porter, 1980) [See Appendix 1.2]. A company only be (Porter, 1980) and rendered unviable (Thornhill & White, 2007). ALDI Australia (ALDI above average returns. Its strategic , undoubtedly follows a cost-leadership price consumer. strategy. Its strategic strength is its ability to offer incredibly low prices, while maintaining It is important to note that a cost leader is not necessarily a price leader4. As a new entrant to this mature industry, ALDI needed a unique value proposition that enabled it to compete with Groceries of the highest quality at (Osgeowitsch & Goelz, 2011). Thus, it is clear that ALDI is also following a price-leadership strategy, passing its cost-leadership
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