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Strategic Analysis Of ALDI

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Strategic Analysis Of ALDI
Strategic Analysis of ALDI
Table of Contents

1. Introduction 2
2. Brief Background on Aldi 3
3. Market Identification of Aldi 4
4. Environmental Analysis 5
4.1 PESTEL Analysis 6
4.1.1 Political factors 6
4.1.2 Economical factors 6
4.1.3 Social and cultural factors 7
4.1.4 Technology factors 8
4.1.5 Environmental Factors 8
4.1.6 Legal factors 9
4.2 Key Trends affecting the industry 9
5. SWOT Analysis 10
5.1 Strengths 10
5.2 Weaknesses 11
5.2 SWOT Table 12
6. Identification and evaluation of the Strategies pursued by Aldi 13
6.1 Strategies implemented by ALDI 13
6.2 Critical Evaluation of the Strategies 14
7. Conclusion 16
8. References 16

1. Introduction

Albrecht Discount Inc., globally known as Aldi, is a German based family owned global discount chain of supermarkets. Aldi constitutes of two independent groups, that are Aldi Nord (North) and Aldi Sud (South) legally and economically independent but family related (Aldi Sud Business, 2013). It is the market leader in the industry of international grocery retailing and owns and operates chain of discount grocery stores in Europe, Australia and United States. It’s stores retail and supply general merchandise and food including meat products, fresh meat, frozen and refrigerated foods, sweets and snacks, dairy and bakery products, beverages and pantry items in addition to home care and personal care products (Report Linker, 2013). In the present Aldi Inc.’s strategic analysis is carried out to identify and evaluate its strategies against its business environment to critically analyze whether the strategies pursued by Aldi are effective in maintaining its market leader position or not. In doing so environmental analysis of international grocery retailing industry is carried out to bring about the opportunities and threats the industry is facing and SWOT analysis is carried out to shed light on Aldi’s strengths and weaknesses and opportunities and threats the industry is facing on the whole. Aldi’s strategies are



References: Aldi App, (2013), Smart Phone, Aldi App, Aldi Us, Available at https://www.aldi.us/en/services/smartphone-app/, Accessed 25 November, 2013. Aldi Nord, (2013), “Business”, Aldi Nord, Available at http://www.aldi-nord.de/unternehmen.html, Accessed 28 November, 2013. Aldi Sud Business, (2013), “Aldi Sud Business”, Aldi Sud, Available at https://unternehmen.aldi-sued.de/de/ueber-aldi-sued/unternehmen/, Accessed 24 November, 2013. Aldi Sud Facts and Figures (2013), “Aldi Sud Fact and Figures”, Aldi Sud, Available at https://unternehmen.aldi-sued.de/de/ueber-aldi-sued/unternehmen/daten-und-fakten/, Accessed 21 November, 2013. Aldi US, (2013), “Aldi US Corporate”, Aldi Us, Available at https://corporate.aldi.us/, Accessed 27 November, 2013. Ferruzza, C., (2011), “Forget Trader Joe’s let’s hear it for Aldi”, Pitch, Available at http://www.pitch.com/FastPitch/archives/2011/07/18/forget-trader-joes-lets-hear-it-for-aldi, Accessed 19 November 2013. Fitzgerald, K., (2013), “Germany the history of Aldi Supermarkets”, Meat Trade News Daily, Available at http://www.meattradenewsdaily.co.uk/news/300413/germany___the_history_of_aldi_supermarkets_.aspx, Accessed 23 November, 2013. Grocery.com, (2013), “Aldi Foods”, Grocery.com, Available at http://www.grocery.com/aldi-foods/, Accessed 27 November, 2013. Mack, S, (2013), “Social Factors Affecting Retail Business”, Small Business Chron, Available at http://smallbusiness.chron.com/social-factors-affecting-retail-business-71662.html, Accessed 23 November, 2013. PWC, (2013), “Industry Issues”, PWC, Available at http://www.pwc.co.uk/retail-consumer/issues/retail-and-consumer-industry-issues.jhtml, Accessed 22 November, 2013. Osborne, H., (2012), “The Aldi Experience: Supermarket shopping with a difference”, The Guardian, Available at http://www.theguardian.com/money/blog/2012/oct/08/aldi-supermarket-shopping-difference, Accessed 25 November, 2013. Reportlinker, (2013), “Aldi Inc. – Strategic SWOT Analysis Review”, Report Linker, Available at http://www.reportlinker.com/p0500369-summary/Aldi-Inc-Strategic-SWOT-Analysis-Review.html, Accessed 29 November, 2013. Sky News, (2013), “Aldi Grows UK Supermarket Jobs and profits”, Sky News, Available at http://news.sky.com/story/1148303/aldi-grows-uk-supermarket-jobs-and-profits, Accessed 27 November, 2013. Snopes, (2013), “Full Horse Dinner”, Snopes, Available at http://www.snopes.com/food/tainted/aldi.asp, Accessed 28 November, 2013. The Guardian, (2013), “Aldi Confirms up to 100% horsemeat in beef products”, The Guardian, Available at http://www.theguardian.com/business/2013/feb/09/aldi-100-percent-horsemeat-beef-products, Accessed 28 November, 2013. Verdict (2009), “Think Retail Think Verdict”, Global Business Insights, Available at http://www.globalbusinessinsights.com/content/dmvt0505m.pdf, Accessed 20 November, 2013. UNEP, (2003), “Industry and Environment”, UNEP, Available at http://www.uneptie.org/media/review/vol26no1/UNEP0103.PDF, Accessed 28 November, 2013.

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