ALDI’S SWOT ANALYSIS
STRENGTHS
By taking account of the position that has been made by Aldi in the market by operating for a several number of years it is now the market leader. Hence, it is evident from the higher number of retail stores across the globe. This seems to be strength of Aldi and also, the geographical scale on which it is spread is wide.
Therefore, this provides Aldi with an opportunity to outperform the other competitors in the market. By utilizing this strength the company may be able to increase its customer base as a result of approaching a vast variety of customer segments. On the other hand, Aldi has been proven to be the provider of best quality products. Moreover, it also has the availability of a wide variety of products due to which it may be able to satisfy the demand of as many customers as they possibly can.
Despite this, the prices that have been offered by Aldi in comparison to the rest of the competitors are also lower. As a result, this will give the company an opportunity to attract as many customers by offering lower prices on those products that are having a higher demand in the market.
Having said that the products that are produced by Aldi are of high quality, but they are also affordable and this makes them differentiate themselves from the rest of the rivals available in Germany. By devising some outstanding and appropriate strategies the company was able to make its strong presence in the market. Therefore, due to this factor the rivals who are operating in the same sector will have the difficulty to compete with a company of this size. The reason behind this is that Aldi is having the capacity to raise barriers in the market which will ultimately result in a requirement of increased capital expenditure.
Moreover, the next strength of Aldi, which is worth mentioning is based upon the holding an extensive range of stock in the inventory in order meet the demand in crucial circumstances as well. By making use of this strength, Aldi’s management will have the ability to make its future prospects better in the long run.
However, this is the competitive advantage that has been sustained by Aldi for a long period of time in order to avoid the reduction in the cash flows to business. In addition to this, Michael Porter has also stressed on the competition among the rivals present in the market and the focus has also been made on the level of profitability of various enterprises.
Apart from this, the offers that have been made by Aldi based upon the products that have been offered by them also differentiate them from the other retailers who are operating in the same sector. Moreover, the offer that has been made by the company is based upon the goods that are in the day to day use of the customers. Hence, by having strength in this aspect this makes them valuable as compared to the other competitors who may not be able to offer the goods at the same prices that are charged by Aldi.
The other major strength that Aldi is having is the implementation of the decentralized structure in the organization which will ultimately result in the delegation of the authority to the management below the senior level. Hence, the staff will be provided with the authority in order to make some of the decision that will prove helpful in the interest of the shareholders of Aldi. By adopting this approach, there will be an inclusion of a variety of creative ideas that will have the ability to be shared with the senior management and will result in the higher motivational level of the management at lower levels.Company Acquisition, Financial Analysis And Projections Case Solution
In the presence of these strengths, the other major strength of Aldi is the availability of own strong brand related to the product range that is offered by Aldi. This will give it the competitive edge in the market and the customers will mostly get attracted to the well-known brand of Aldi whose products are available at affordable prices as well as they are available in an extensive range........................
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