Aldi's Innovative Grocery Business Model Vs Walmart Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Aldi's Innovative Grocery Business Model Vs Walmart Case Solution

Firstly, ALDI’s value proposition is not extremely unique and is easily imitable, which has invited other players in the industry through adopting ALDI’ business model. Moreover, consistency is the key element of ALDI’s innovation based business model and it is becoming difficult for ALDIto maintain consistency in the product quality standards, using the local vendors. In addition to this, the supermarket chain needs to figure out the customers’ value by figuring out their priorities through the point of sale systems, as ALDI’s systems are very simple, making it unable to estimate the high demand as compared to the sophisticated systems used by the Walmart.

Question 4

ALDI supermarket is prone to different challenges as a result of technological variations, product varieties and fierce competition within the industry. ALDIhas its presence in the industry for few years, but other players have remained in the industry for decades. There exists a possibility that the established brands outperform the private label brands offered by ALDI. The consumers are unable to get an inclusive shopping experience as the chain limits the specifications of the supermarket. Moreover, in order to increase its lean production;ALDIhas minimized the space usage, which can be disadvantageous as only a few customers could be served at one time, using the smaller store spaces. In order to maintain a sustainable supply chain; ALDI needs to follow the elements in the conceptual framework of Surti, Hassini and Searcy. (See Appendix 2)

Sourcing: ALDI needs to maintain relationships with private label brands, even with renowned public brands, which provide quality products, thereby adhering to the environmental regulations imposed by the governmental authorities. The products must approved by the health regulations laws, in order to deliver the quality products, while maintaining the discounted prices.
Transformation: ALDI should continue its fair labor practices, as the supermarket has few employees dealing with large customer base. Though the salary is high, but there exists a huge burden over the employees. The chain must adopt sustainable business practice in running its operations.
Delivery:The delivery systems should be widened in order to reach a wider customer base. ALDI’s current stores and supermarket chain do not offer an inclusive experience to the customers, as offered by Walmart and other giant players. It should invest in expanding its stores in order to provide a valuable and convenient shopping experience to its customers.
Value propositional continue its value proposition as its business model focuses on providing private label products to 90% of the middle class consumers.
Customers and the product use:The supermarket chain has to adopt efficient technologies, which reductase on dioxide emissions into the environment, enabling the supermarket chain to increase its lean production and products’ availability to it -send customers.

Conclusion

The case explains the stumbles by Walmart in it strategy and business model, which led to a successful entry by ALDI and eventually getting its foothold established in the supermarket industry. ALDI’s business model enabled it to deliver products at lower prices and earn its reputation by providing private label products at high quality standards.ALDI is exposed to different challenges as a result of technological variations, product varieties and fierce competition within the industry. In order to maintain sustainable competitive advantage; ALDI needs to adopt new technologies and increase its expansion, which could result in increased market share, customers base and profitability levels..........................

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