Aldi Strategic Analysis
In 1948, the brothers Theo and Karl Albrecht opened the grocery store ‘Albrecht Discounts' (Aldi) in Essen (Ruhr Valley), Germany. The store had a simple layout and provided a great deal of products at a low price. The company grew rapidly, owning 13 stores in 1950 and about 300 stores in 1961 across Germany.
In 1961, Theo and Karl divided the company into Aldi North (run by Theo) and Aldi South (run by Karl). The reasons for this division, according to Dieter Brandes, a former managing director of Aldi in Schleswig-Holstein, Germany, were different views about how to develop the business. However, the brothers normally exchanged information about a range of issues such as performance and cost figures, current and potential suppliers and they also conducted joint negotiations with suppliers. In 2003, Theo and Karl resigned as CEOs. Theo's son, Theo Albrecht Jr, now runs Aldi North, and Juergen Kroll and Norbert Podschlapp run Aldi South.
Since the ‘Spend a little Live a lot' message is being known by more and more people, and Aldi has been obtained ‘Best Supermarket 2009 Award' in 2009, Aldi has become one of most reputable retailer in the international business, and it operates over 7,000 stores worldwide. Considering of this situation, it would be interesting to understand and analyse the management strategies of Aldi. Therefore, my project will analyse management strategies of Aldi which operates a discount supermarket chain in the retail industry.
The paper begins by using PEST analysis, Porter's 5 forces analysis and Competitors' analysis to analyse the environment of supermarket industry. The next section is to analyse the strategic capability of Aldi. The following section discusses purpose of Aldi, and the final section draws recommendations for improvement of Aldi's strategy.
Section 1: Environmental Analysis
PEST analysis
Based on using a PEST analysis, it is likely to recognize the core environmental influences on Aldi. Firstly, it is well-known
In 1961, Theo and Karl divided the company into Aldi North (run by Theo) and Aldi South (run by Karl). The reasons for this division, according to Dieter Brandes, a former managing director of Aldi in Schleswig-Holstein, Germany, were different views about how to develop the business. However, the brothers normally exchanged information about a range of issues such as performance and cost figures, current and potential suppliers and they also conducted joint negotiations with suppliers. In 2003, Theo and Karl resigned as CEOs. Theo's son, Theo Albrecht Jr, now runs Aldi North, and Juergen Kroll and Norbert Podschlapp run Aldi South.
Since the ‘Spend a little Live a lot' message is being known by more and more people, and Aldi has been obtained ‘Best Supermarket 2009 Award' in 2009, Aldi has become one of most reputable retailer in the international business, and it operates over 7,000 stores worldwide. Considering of this situation, it would be interesting to understand and analyse the management strategies of Aldi. Therefore, my project will analyse management strategies of Aldi which operates a discount supermarket chain in the retail industry.
The paper begins by using PEST analysis, Porter's 5 forces analysis and Competitors' analysis to analyse the environment of supermarket industry. The next section is to analyse the strategic capability of Aldi. The following section discusses purpose of Aldi, and the final section draws recommendations for improvement of Aldi's strategy.
Section 1: Environmental Analysis
PEST analysis
Based on using a PEST analysis, it is likely to recognize the core environmental influences on Aldi. Firstly, it is well-known