Global Business Case Study

Topics: Social influence, Grocery store, Case study Pages: 6 (1923 words) Published: February 15, 2014
Global Business Case Study – ALDI
Executive Summary
This report will discuss the nature of ALDI, investigate the classification of ALDI, outline the responsibilities ALDI has to its stakeholders and explore the internal and external influences that have contributed to ALDI achieving business success within Australia. It will also evaluate the expansion of ALDI into Australia and give a recommendation of strategies that would be appropriate for ALDI to ensure future growth. The nature of ALDI’s business

ALDI is an international “cut-price” grocery company that has been operating for over 50 years first opening in Germany (ALDI, about ALDI Australia); ALDI opened its first store in Australia in January 2001 and now has over 300 effectively operating stores across Australia. ALDI prides itself on ensuring that 100% of their profits are reinvested back into the Australian business. ALDI aims to provide consumers the opportunity to buy ordinary groceries at a high quality but for a low price. The classification of ALDI

ALDI is large global corporation that has created over 4,500 jobs within Australia. ALDI is positioned within the tertiary industry sector as it’s supplying a service and a product for the Australian consumer. ALDI Pty Ltd indicates that it’s a propriety business stating that it’s a private company with limited liability. The responsibilities ALDI has to its stakeholders

ALDI has large responsibilities to its stakeholders and aims to meet and exceed their expectations. ALDI has to ensure that when making important decisions and actions they are taking the stakeholders priorities into consideration. An example is the environment. ALDI holds a commitment to environmental sustainability; the firm does this by giving consumers reusable shopping, reducing energy out of hours plus more. Internal and external influences

Internal influences
Price is a major internal influence that has contributed to ALDI achieving business success in Australia. This is due to ALDI introducing unit and national pricing; in 2009 the Choice supermarket survey showed that ALDI is 25% cheaper than the two largest Australian supermarket chains for a comparable basket of goods (ALDI, ALDI Facts). Australia has a large competitive market for grocery stores, with ALDI having lower prices it allows consumers to get better value for their money plus attracting consumers to the store, thus contributing to ALDI’s success. Cost is another internal influence that has added to ALDI’s achievement within Australia. ALDI have chosen to cut down on costs that have caused other retailers to raise their prices. ALDI avoids complimentary plastic bags, an excess of in-store staff and celebrity endorsement to allow them to provide consistent products and exceptional staff that ensure great customer service.

External influences
Social influences have affected ALDI’s success within Australia. As society has become more aware of ethical issues such as sustainability, in particular overfishing it has encouraged ALDI to become more conscious of the way in which they can contribute to the community’s quality of life. ALDI aims to buy all seafood from sustainable or farmed sources to certify the future of fish populations (ALDI, Sourcing sustainably caught fish). Hence consumers are content with ALDI, resulting in further sales and growth. Another external influence that has contributed to ALDI’s success in entering into the Australian market is the competitive situation. ALDI operates within a highly competitive industry with Coles and Woolworths being the strongest contenders. With such a competitive market it’s placed pressure onto ALDI to develop a competitive gain over the other grocery chains. In turn this has given ALDI an advantage to further emphasise their great value for products and it has given ALDI the opportunity to develop a competitive advantage over the other grocery chains. Expansion into Australia

ALDI’s first Australian...

Bibliography: Web. Date accessedL 28 Feb. 2013.
Web. Date accessed: 28 Feb. 2013.
Web. Date accessed: 28 Feb. 2013. 1 March 2013. 2 March 2013. 3 March 2013.
"ALDI continues to grow along the east coast." 
Web. Date accessed: 2 Mar. 2013.
Web. Date accessed: 2 Mar. 2013.
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