Aldi.docx - Professor Kinard BA 427 Aldi’s – Case Analysis Overview In 1948 after a war-torn Europe struggled to purchase necessary goods German

Aldi.docx - Professor Kinard BA 427 Aldi’s – Case...

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Professor Kinard BA 427 Aldi’s – Case Analysis Overview In 1948, after a war-torn Europe struggled to purchase necessary goods, German brothers Theo and Karl Albrecht took over their mother’s store and began by selling necessary items at low costs. At first, the brothers planned to expand after the economy picked back up, however the Albrecht’s quickly realized they could maintain their low prices if they stuck to their original business plan. By 1958, the Albrecht’s owned and operated over 300 grocery stores with revenues exceeding 100 million Deutsche Marks. After a disagreement in 1960, the brothers split the company, sharing some aspects of the business while keeping quiet about others. This, along with Theo’s kidnapping enforced the brother’s commitment to secrecy. In 1962, the brothers decided to form Aldi, a combination between their name and the word discount. Issue Identification Aldi has had great success applying their unique business strategy to European markets such as the United Kingdom and even the United States from 1976 – 1990. The company’s commitment to secrecy while applying their low price, low selection model consistently delivered great results. However; in the United States growing grocer industry Aldi is faced with competitors not
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  • Fall '08
  • Kinard,J
  • Grocery store, Theo Albrecht

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