Aldi in Australia 2

Topics: Retailing, Strategic management, Aldi Pages: 15 (4156 words) Published: September 18, 2011
Aldi in Australia

Executive Summary

Based on the case provide to us that was put together by Ingrid Bonn, School of Business, Bond University. A report was prepared that will enable the company to analyze its current position in the market and help ensure that they start to further grow and capture the entire Australian market. An internal and external analysis was conducted in order to ensure that all the facts and figures surrounding Aldi was accurate. With the help of all these details we were able to gather an idea of what the market is like currently and also with an industry analysis that was carried out we were able to find out the major players in the Australian market at the moment and we have also provided recommendations to Aldi, Australia in order to ensure they can grow and capture the market as to their benefit they provide a strategy which can capture an audience of offering quality products at low cost.

Table of Contents

Executive Summary2
Macro Environmental Analysis5
Industry Analysis6
Porter’s Force Field Analysis6
Buyer Power6
Supplier Power6
New Entrants7
Strategic Group Analysis8
Internal Environmental Analysis9
Value Chain Analysis9
VIRO framework9
SWOT Analysis9
Recommendations and Justification10
Appendix 1 Background of Aldi11
Appendix 211
Appendix 3 – Porters 5 Forces Diagram12
Appendix 4 – SWOT Analysis12
Appendix 5 – Value Chain Analysis14
Appendix 6 – VRIO Framework15


This report is being compiled on the request of Aldi Australia. Through this report we are going to be analyzing the management strategies being used by the organization at the moment and provide Aldi with various recommendations on what steps they would have to take to grow and expand operations in the future. The current market by which Aldi operates in can be characterized using Porter’s Force Field Analysis (discussed in detail later), the current market consists of a high level of competition, high bargaining power by consumers, high threat of substitutes, low level of bargaining power of suppliers and moderate threat of new firms entering the market. Through this report we would have analyzed each problem in Aldi’s strategy and provide them with recommendations on how they could go implementing them in order to be the market leaders in their industry.

Macro Environmental Analysis

In this section of the report it shall be discussed on how the macro environment is currently in the market in which Aldi Australia operates within. In Australia Aldi operates in a market that’s highly saturated and understanding of the macro environment becomes key to being sustainable in the market. The economy in Australia is a well developed one, which in turn means that there are a number of long standing industries that provide employment opportunities to the public. This in turn is translated into purchasing power that supports the uptake of Aldi stores. Due to majority of the country’s population being middle income earners, it needs to be understood that it makes for a big market of price conscious customers. There are also big household communities in Australia to support demand for Aldi’s products. With Australia’s consumption economy emerged a mature food retail industry in the country with many industry players competing to gain and maintain a market share. (Moore & Wen 2007) Being a developed country, Australia benefits from technological changes that come into the food retail industry.  Technology is used in all lines on the supply chain process and is also used in corporate communications within the organisation as well as with the company’s stakeholders. Technological changes applicable to the food retail industry support marketing activities online as well as cost-efficiency in operations. Unlike its competitors, Aldi operates with independent...

References: Mills, G 2003, ‘Buyer Power of Supermarkets,’ Agenda, vol. 10, no. 2, pp. 145-162.
Moore, S. & Wen, J.J., 2007. Strategic management in Australia and China: The Great Leap forward or an Illusion?. Journal of Technology Management in China, 2 (1), p.10-21.
Tutor2u, (n.d). Retrieved on 12th December 2010 from the website
Thompson, A. & Strickland, A. (2001). Strategic Management. Twelwth Edition. Australia: McGraw Hill.
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