Marketing Management And Strategy 2
Contents
Introduction 2
Aldi 3
Buyer 's bargaining power: 4
Suppliers ' bargaining power: 4
Threats of substitutes: 5
Threats of new entrants: 5
Competitive rivalry 5
Analysis of Five Forces 5
Conclusion 6
Recommendations 6
Market penetration 7
Product development 7
Market development 7
Diversification 7
Bibliography 8
Introduction
This report researches the competitive strategy of Aldi, look at the reasons of its success and where they could possibly improve, taking in to consideration the current market situation. It uses Porters generic cost leadership, Porters five forces and Ansoff’s growth matrix tools in order to analyse the potential growth of Aldi. There are recommendations to Aldi on the strategically best way to grow the business
Aldi
Aldi started in 1946, when the Albrecht brothers took over their mother’s grocery store in Germany. According to (Ruddick, 2014) from the small provincial store, they built one of Germany’s biggest retailers, which is renowned for its low prices. Aldi arrived in the UK in 1990 and has opened over 500 stores and has over 9000 stores in 18 countries. Aldi’s product range specialises in their own brand, which are cheaper than well-known brand labels. This is because they can control their prices at its distribution level. Aldi does not only stock food products, they also stock items such as; underwear, toiletries and fishing equipment.
Comparing Aldi to the four major supermarket chain retailers there is a stark difference to how they function to how Aldi functions. (Keynote, 2007) Illuminates that Aldi stocks around one thousand product lines whereas the major chain retailers stock over three hundred thousand product lines. This is beneficial to the less price sensitive consumer as there is more choice however, this also means products are more expensive.
It is apparent that one of Aldi’s marketing objectives is to grow its market share within the UK market. (Jenkinson, 2014) Cites,
Introduction 2
Aldi 3
Buyer 's bargaining power: 4
Suppliers ' bargaining power: 4
Threats of substitutes: 5
Threats of new entrants: 5
Competitive rivalry 5
Analysis of Five Forces 5
Conclusion 6
Recommendations 6
Market penetration 7
Product development 7
Market development 7
Diversification 7
Bibliography 8
Introduction
This report researches the competitive strategy of Aldi, look at the reasons of its success and where they could possibly improve, taking in to consideration the current market situation. It uses Porters generic cost leadership, Porters five forces and Ansoff’s growth matrix tools in order to analyse the potential growth of Aldi. There are recommendations to Aldi on the strategically best way to grow the business
Aldi
Aldi started in 1946, when the Albrecht brothers took over their mother’s grocery store in Germany. According to (Ruddick, 2014) from the small provincial store, they built one of Germany’s biggest retailers, which is renowned for its low prices. Aldi arrived in the UK in 1990 and has opened over 500 stores and has over 9000 stores in 18 countries. Aldi’s product range specialises in their own brand, which are cheaper than well-known brand labels. This is because they can control their prices at its distribution level. Aldi does not only stock food products, they also stock items such as; underwear, toiletries and fishing equipment.
Comparing Aldi to the four major supermarket chain retailers there is a stark difference to how they function to how Aldi functions. (Keynote, 2007) Illuminates that Aldi stocks around one thousand product lines whereas the major chain retailers stock over three hundred thousand product lines. This is beneficial to the less price sensitive consumer as there is more choice however, this also means products are more expensive.
It is apparent that one of Aldi’s marketing objectives is to grow its market share within the UK market. (Jenkinson, 2014) Cites,
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