The success of Aldi
Aldi’s business Report
1
Executive summary
This report presents a business case study of Aldi, to examine both internal and external factors that drive Aldi to the current successful position in the UK highly competitive grocery market. The report contains the PESTLE, which analyses external factors affecting
Aldi’s business strategy. Furthermore, the report will discuss the essential business strategies; include the cost-leadership and price strategy, which helps Aldi to obtain competitive advantages. In addition, the report will point out the internal process as the main managerial model to Aldi. At the end of the report, it will recommend the ways to increase sales, in particular online sales.
Introduction
Aldi is known, as the best place for low-income customers. However, after the financial crisis, Aldi has become one of the most favorite supermarkets to British household. In contrast to previous year in the UK grocery market, Aldi has increased sales 32.7% for 12 weeks before 8th of December 2013, with increased market share from 3.2% to 4%. (Kantar
2013) Lawson (2013) expressed, Aldi gained more 1 million customer from the “big four” in 2012. “Spend a little Live a lot (Aldi, 2014), as the company’s mission statement drives
Aldi to pursue simplicity and efficiency throughout the business, in order to offer best quality product with low price to customers. This report will discuss the critical factors that affect Aldi’s business by according to its recent performances.
2
PESTLE analysis, is a business analytical tool to track, how the UK macro-environment factors affect Aldi.
Political factors
- Temporary stable political environment
- 2015 election, possibly Labour party will be next administration party
- Economic policies shift focuses
- No huge affects to food retail industry
Economic factors
-
Deflect is falling
-
Unemployment rate is falling, so far at 7.4%
-
GDP is growing
-
Strong
1
Executive summary
This report presents a business case study of Aldi, to examine both internal and external factors that drive Aldi to the current successful position in the UK highly competitive grocery market. The report contains the PESTLE, which analyses external factors affecting
Aldi’s business strategy. Furthermore, the report will discuss the essential business strategies; include the cost-leadership and price strategy, which helps Aldi to obtain competitive advantages. In addition, the report will point out the internal process as the main managerial model to Aldi. At the end of the report, it will recommend the ways to increase sales, in particular online sales.
Introduction
Aldi is known, as the best place for low-income customers. However, after the financial crisis, Aldi has become one of the most favorite supermarkets to British household. In contrast to previous year in the UK grocery market, Aldi has increased sales 32.7% for 12 weeks before 8th of December 2013, with increased market share from 3.2% to 4%. (Kantar
2013) Lawson (2013) expressed, Aldi gained more 1 million customer from the “big four” in 2012. “Spend a little Live a lot (Aldi, 2014), as the company’s mission statement drives
Aldi to pursue simplicity and efficiency throughout the business, in order to offer best quality product with low price to customers. This report will discuss the critical factors that affect Aldi’s business by according to its recent performances.
2
PESTLE analysis, is a business analytical tool to track, how the UK macro-environment factors affect Aldi.
Political factors
- Temporary stable political environment
- 2015 election, possibly Labour party will be next administration party
- Economic policies shift focuses
- No huge affects to food retail industry
Economic factors
-
Deflect is falling
-
Unemployment rate is falling, so far at 7.4%
-
GDP is growing
-
Strong