MGT452 Strategic Management Case Analysis: __Aldi Case________________________ Important facts in this case (company, industry, competition, etc)? (10%) 10,000 stores in 17 countries as of 2012 Household items and Grocery Low profile Aldi owns Trader Joes but does not manage Started in Germany by brothers. Extremely frugal Brother split the company in two after disagreement. Continued to work together by sharing information. Spread to Austria in 1960s. To Belgium, Netherlands, and Denmark in the 1970s Spread to US in 1976 focusing in Midwest and UK in late 1980s Private Label Brands in stores Huge focus on quality of privately labeled brands ‘Double Guarantee’ Loyal Fan base Frugal – apparent in land purchases and display of product Limited brands of each item- decided by upper management Did not spend money on aesthetics of store- this allows Aldi to offer lower price Cash heavy Customers bag themselves Special Buys each week Environmental & Competitive Scan External factors outside the direct control of the company, but which affect the company. External factors create opportunities and threats to which the company must respond. (e.g., political, demographic, environmental, technological, global, legal) (10%) Some customers are looking for a shopping experience. They don’t want to be rushed in and out. They will pay
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