Aldi Case

1368 words 6 pages
1) What are the core elements to Aldi’s business strategy? Be specific as to what they are doing that sets them apart from competition and WHY this is different than their competitors?

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…

After visiting the store, I believe this global powerhouse may struggle in the US because the inside of the store is not very conducive to providing a great shopping experience. The aisles are messy and the products look as if they were pulled out from the back of a truck. The store is dimly lit and seems almost dirty. When I walked into the store, I was originally taken back because I had a mindset that it was going to be very nice. However, I was wrong. I did not enjoy my surroundings and I did not believe that Aldi focuses on the high quality portion of their mission, but only the low cost. Also, the customers that Aldi attracts are lower class individuals. These people shop in bulk and are attracted to the store because of the low prices. They do not care about the sloppiness of the displays just that they can get the lowest price.

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


  • 205321153 Woolworths PAST JOB 1
    6914 words | 28 pages
  • Operations Management
    1460 words | 6 pages
  • Analysis of Failed Company - Kwik Save
    3034 words | 13 pages
  • European Eonomis: Report Regarding the Potiential of Lily O’brien’s Chocolates to Expand Its Operations Into Eu Markets
    2634 words | 11 pages
  • A-Level Buss4 to What Extent to Do Think That the Recent Changes in the Uk Economy Will Have Damaged That Lt Profits of Businesses
    931 words | 4 pages
  • How Branding Affects Consumer Purchasing Research Proposal
    1672 words | 7 pages
  • 1. Based on the Case Study and Your Own Research on Competitors, Summarize the Strategic Approaches Which Have Helped Tesco.Com Achieve Success Online.
    1585 words | 7 pages
  • Irish Breakfast Cereal Market
    2653 words | 11 pages
  • Private Label
    1214 words | 5 pages
  • Wal Mart Company Overview
    1775 words | 8 pages