Operations Management

1460 words 6 pages
NAME: MITCH B. MENDEZ DATE: NOV. 26, 2015

CASE STUDY: ALDI

1. How does ALDI’S strategy lead to competitive advantage? How does the company achieve this strategy?

* A competitive advantage is one that distinguishes a firm or a business from the competitors in the minds of the customers. It also refers to the state or condition that make a business more successful than the businesses it is competing with, or a particular thing that makes it more successful such as having a higher sales through offering low or affordable goods and services.

Most of the businesses operate in competitive markets: businesses have to take on and see of rivals or competitors.ALDI, a
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Therefore , when a customer pays a lower price for the said product, he is paying for not only quality which he can see, feel, or judge, known as ‘tangibles’, but also to the things that are considered ‘intangibles’ such as the ‘esteem’ value or satisfaction.

Quality is what a customer expects in the product or service he or she is buying. If a customer expects excellence in everything he or she purchases, then his or her expectations are high. Quality also means providing customer with innovative products or services, characteristics or attributes and defects free which provide fitness for use of the consumers. Quality may also refer to the state in which satisfaction arises from its use. So, why is quality important? Yes, Quality plays an important role not only on businesses but most especially to its consumer for it becomes the basis of most of the customers whether to buy or not a certain product. Quality products also help to maintain customer satisfaction and loyalty and reduce the risk and cost of replacing faulty goods. And a customer who is certainly happy with the first buying experience because of its quality, they will return again and again to purchase the high quality product. In addition, through producing products that constitutes quality; it may build a company’s reputation by gaining accreditation with a recognized quality

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