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Swot and Pest Analysis of Aldi

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Swot and Pest Analysis of Aldi
Vision and Mission Statement

Aldi does not have a published vision or mission statement. However there is a clear set of values and business philosophy which they adhere to. This philosophy is outlined by the statement which it continuously uses, ‘Top quality at incredibly low prices – guaranteed’. In its small levels of advertising Aldi elaborates on this philosophy by stating its five main principles; huge savings, excellent quality, outstanding value, superb specials and buy with confidence. These five principles were quoted as the ‘Aldi Pledge’. This outlines there key values namely to offer their customers high quality products at low prices. This is achieved by their low cost operations, which is well known and evident throughout its stores.

External Analysis (Threats and Opportunities)

The General Environment

The general environment is composed of factors that can have dramatic effects on firm strategy which include Demography, Socio-cultural, Political, Technological, Economical and Global factors, but it is complex, uncertain and undergoing rapid change, especially in its economic consideration.

Economic and Global

Australia’s economy continues to grow strongly, expanding by 3.3% in 2010 (ABS Statistics). Australia’s economy has not felt the economic downturn as harshly as other countries, rebounding after just one negative quarter of growth. Rising interest rates have lead more customers to Aldi, due to their lower prices, despite a decrease in spending power. Although, in the long term, high levels of household debt, falling house prices and possible increases in interest rates could yet impact on consumer confidence and spending over the next few years. Globally the economic downturn has impacted heavily on Europe and the US. Globalization, however, is the main reason for Aldi’s entry into the Australian grocery market.

Demographic and Socio Cultural
Australia’s population, as of 10am on 1pm on October the 24th, was 21,871,559,

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