The core elements to Aldi’s business strategy are to offer top quality and extremely low prices. One article states that in the Midwest, Aldi’s prices are “15% and 20% less than Wal-Mart and 30% to 40% cheaper than regional chains.” The company also focuses on selling goods that have a high turnover such as food and beverages. Aldi receives shipments of goods five to six times a week and it takes anywhere from one to four days for delivery. Aldi’s organized and simple supply chain allows for fast shipment. However, what makes Aldi unique is that while it …show more content…
4) Knowing what you do about assortment, what part of the ROA equation do you think they maximize? Explain.
I believe Aldi maximizes the total assets part of the formula. Because the company strives on stocking it shelves with a limited number of products, their total assets are relatively low. This creates a higher ROA. Aldi has done a very good job at maximizing sales while controlling expenses. The higher the income and lower the total assets shows how well Aldi is producing earnings from its assets.
5) Now, talk to someone that has shopped at a Trader Joe’s, also owned by Aldi. Why do you think this similar