An analysis of aldis strategy

An analysis of aldis strategy Introduction In 1948, the brothers Theo and Karl Albrecht opened the grocery store ‘Albrecht Discounts’ (Aldi) in Essen (Ruhr Valley), Germany. The store had a simple layout and provided a great deal of products at a low price. The company grew rapidly, owning 13 stores in 1950 and about 300 stores in 1961 across Germany. In 1961, Theo and Karl divided the company into Aldi North (run by Theo) and Aldi South (run by Karl). The reasons for this division, according to Dieter Brandes, a former managing director of Aldi in Schleswig-Holstein, Germany, were different views about how to develop the business. However, the brothers normally exchanged information about a range of issues such as performance and cost figures, current and potential suppliers and they also conducted joint negotiations with suppliers. In 2003, Theo and Karl resigned as CEOs. Theo’s son, Theo Albrecht Jr, now runs Aldi North, and Juergen Kroll and Norbert Podschlapp run Aldi South. Since the â €˜Spend a little Live a lot’ message is being known by more and more people, and Aldi has been obtained ‘Best Supermarket 2009 Award’ in 2009, Aldi has become one of most reputable retailer in the international business, and it operates over 7,000 stores worldwide. Considering of this situation, it would be interesting to understand and analyse the management strategies of Aldi. Therefore, my project will analyse management strategies of Aldi which operates a discount supermarket chain in the retail industry. The paper begins by using PEST analysis, Porter’s 5 forces analysis and Competitors’ analysis to analyse the environment of supermarket industry. The next section is to analyse the strategic capability of Aldi. The following section discusses purpose of Aldi, and the final section draws recommendations for improvement of Aldi’s strategy. Section 1: Environmental Analysis PEST analysis Based on using a PEST analysis, it is likely to re cognize the core environmental influences on Aldi. Firstly, it is well-known that the major economic factor is the global recession which originally caused by the United States housing bubble during the period from 2005 to 2008. This financial event has been to strongly motivate customers who begin to purchase inexpensive products with high quality. This means that Aldi will attract a great deal of customers without advertising and doing activities of sales promotion. Because of this situation, it is not necessary to conduct new strategies for the growth of customers. On the other hand, global recession possibly result in the increase of product’s cost, thus there is a doubt of whether Aldi could sale low-price products with good quality. Therefore, Aldi should consider this problem in order to ensure future growth. Furthermore, social factors impact on Aldi includes the change in consumer taste, some of lifestyle changes and health concerns. It is clear that in recent years more and more consumers start changing their taste, for instance, an increasing demand for organic foods and ban of GM foods. Aldi should consider this factor because it may impacts on the future products’ development of strategy. Moreover, there is not doubt that some of lifestyle changes such as home shopping and interest usage might increase online shopping, thus according to this factor, Aldi possibly invest more funds to enhance their online service and delivery’s service. Recently, health concern has become a key issue around the world, so consumers tend to purchase health products without worrying about the price. For example, BSE outbreak precipitated ban of British beef (Elliott, 2005).

Programs Marketing for Laptops Essay Example | Topics and Well Written Essays - 250 words - 36

Programs Marketing for Laptops - Essay Example the group has to carry out a SWOT analysis of your group (Hartley, pg.33). This helps the group to determine what they have and what they are to do. The group determines your major competitors in the area who sells the OS. This places the group at the position of capitalizing the weakness of the competitors. Having achieved that, then the marketing strategies have to be drawn in the form of a business plan. The methods of marketing are discussed and stated.  Then target as many people as possible when marketing for the products. The aggressive online advertisement has shown to have greater opportunities for getting customers. Present your OS in the commonly visited site (Hartley, pg.36). Have your programs intelligently advertised to attract the customers. Include contacts in the advertisement site to allow communication with the customers. Posters and banners can also be used to enhancing market of the program. The positioning of them is crucial so that they are easily visible and readable. The group can also take marketing to social centers to capture many as possible. Offer some services at no cost like teaching on how to install the program. This captures more customers. Periodic review of the progress is determined. This helps determine which programs, OS is commonly sorted, and the specific features customers want. Through this, the group can propel ahead in their business.

Multinational Business of Kuwait Case Study Example | Topics and Well Written Essays - 2500 words

Multinational Business of Kuwait - Case Study Example Economic standing of Kuwait has been progressing well in the recent past despite various environmental and internal challenges that threaten its GDP. Currently, the nation’s income per capita has increased by 1% while the GDP level has also recorded a growth of 7%. Kuwait is a vast land that has the potential for growth if proper economic modalities are put in place by the authorities. The country’s resource base can sustain its citizens. This is evident in the immense potential in the agricultural sector, the business field and its rising labor force (Ghemawat, 2001). The initiation of viable trade, political, social and cultural policies has enabled the country to record significant growth in its per capita income levels and GDP standards. The policies are to eradicate the distance dimensions or factors that influence performance. Kuwait’s economic geography is bound to record an upward growth trend or expansion especially with the mitigation plans that are und er formulation to avert the effects of the dimensional factors. The dimensions that include cultural practices, economic implications, social and political issues must be addressed by an economy that seeks to meet its target (Ghemawat, 2001). The country's Dimensions of Distance Economic growth in Kuwait is dependent on the major factors that influence performance and production. The factors that hold the capacity of stalling or propelling economic performance are integral in enhancing per capita income in the country (Khanna & Sinha, 2005). Authorities in Kuwait recognize the need for the development of viable performance measures to trade barriers and unwarranted economic bottlenecks that seek to impede the flow of production. Modalities are being crafted to streamline economic activities that include agriculture and business operations. This is critical because the country’s economy is financed by agricultural activities and international business. The policies are to help in eradicating trade barriers and other distant factors that affect growth in the nation. The dimensions that include cultural practices, economic implications, social and political issues hold far-reaching effects on the economy. According to Khanna and Sinha (2005), the country’s international business operations have been affected by the cost implications and risks that result from barriers that are created by distant factors. He stated that the distant factors do not expressly refer to the geographical difference but they are the major dimensions that influence economic growth. Economic element is a dimension that affects business operations and various income-generating activities in Kuwait. The nation is described as a small economy with two major GDP financiers that are under-exploited. The under exploitation is due to inadequate resource capacity that hinders the adoption of modern technological setups for production. Although the nation’s GDP has recorded sig nificant percentage growth, the increase is not adequate to steer the expansion plans that are expected in the agricultural and business sectors (Khanna & Sinha, 2005). This may further harm the nation’s performance if amicable solutions are not realized.