Aldi has been wearing the name and character of the international company for over 50 years. Aldi penetrated the Australian market in January 2001 and at present it has over 400 business operation across across Australia. The company operates on the basis of providing great and acceptable value for all costumers. However, Aldi is not the only supermarket chain in Australia where other competitors such as Woolworths and Coles occupy and serve the great amount of the market . The situational analysis of the company is performed in order to establish strategic management of Aldi's expansion in Australia. The PESTEL model and Porter's five forces model will be examined to determined the factors influencing the company. This report will also …show more content…
Moreover the people's living style has changed which has been seen in the increase of living as an “individual” due to demographic influences such as ageing population, late marriages, increasing number of divorces and separations (Australian Bureau of Statistics, 2005). Those factors will have direct influence on a demand for high quality household items and grocery products with lower prices because consumers will concentrate more on their hobbies and socialising events. Furthermore Australia has a multinational and multicultural society and overall the authenticity and nurturing good relationships are important behaviours in daily life of people in Australia which reflects well into the strategy of Aldi providing the authentic high quality brand products (Graiser & Scott 2004).
2.1.4 Technological factors
Technology is constantly changing and it influences the shopping habits of the consumers. Roberts (2004) argues that online shopping opportunities have increased
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exponentially and consumers are using them mostly as a price comparison method. It has its pros and cons. The positive impact is seen in developing company's technological base boosting retail performance while negative aspect is the competition as the company does not support the idea of online shopping and home deliveries. Aldi rather concentrate on the high-quality products with the lowest expenses and cost and gives the customers the opportunity to search the products online and create printable shopping list (Veliyath & Fitzgerald
1.3 Physical Resources & Capabilities The ALDI brothers took over the family business of their parents in 1946. World wide expansion led to enormous growth. This comprises around 9800 stores (1000 to 1500 SQM each). The layout is simple with wide ails designed to refill shelves in the fastest, most convenient way {Brands, D. 2003}. They offer a small assortment of mainly fast-moving items (approximately 700 food – including a slim and organic line- and non food products). Small warehouses are located at the back of each store. Affiliates are equipped with limited technology such as intelligent cash systems high-end product concerning quality and price and bottle deposit machines. ALDI won the 2008 energy management award for great results in terms of cooling systems, illumination etc. Most stores have about 100 parking space and a shopping cart area near the entrance. ALDI has a long history which implies that they have gained great experience over the years. The location and layout of stores are designed to support fast and efficient supply and not especially aimed at customer needs. This is a weakness. Stores advantageously located as there are in convenient reach for consumers. Their product range is adapted to various consumer needs (organic, healthy living). The technological equipments are of high quality enabling fast operations at the checkout (ALDI’s staff are two times faster compared with other similar operations). This is
1.0 Overview of ALDI in Australia Aldi has opened their first store in Australia in 2001 while operating more than 50 years internationally. Now, Aldi has successfully operating 400 stores across Australia with their strategy
Despite the economical recession that the US currently faces, all around the country, ALDI continues to grow. ALDI is recently celebrating the opening of their 1,000th U.S. store in West Haven, Connecticut. At a time when other retailers are cutting back and the recession is deepening, ALDI continues to build new stores in 29 states nationwide and also around the globe.
6. Store Layout: Store layout is crucial for customers to move. Shoppers won’t need a map to navigate their local Aldi, with a 5 star rating for store lay out. Coles, IGA & Woolworths received 4 stars for their layout.
GLOBALISATION: Waitrose is expanding its business and suppliers through the world. It trades with more than 80 countries.
However, with respects to Aldi there are two main influences to the company's’ marketing, consumer laws and economics (Dhal, 2015).
This report is going to present the current culture of Aldi, critically examining its current culture and possible proposal for a change in culture. It identifies the current organisational culture, its strengths and weaknesses and make recommendations necessary for an organisational culture change.
What does this mean? 2 years later, can we still say that Woolworths is leading the shopping revolution in Australia? Woolworths website provides some facts for the year 2012:
The following report will investigate the Australian retail/grocery supermarket Woolworths and its parent company Woolworths Limited. This report will explore the success Woolworths and its contribution to the Australian economy.
The Internet has changed the way we do virtually everything, including the way we shop. However, shopping is not the only thing that has changed. In the last decade we have changed the way, we apply for loans, study, and even plan a vacation. Doing any of these things would have been impossible a few decades ago. At present, online banking, paying bills, ordering new services, and shopping online have become part of our daily lives. Traditional brick-and-mortar stores have been around much longer than online stores, but we cannot deny that online shopping is giving the traditional stores competition. Many consumers still choose to shop at regular brick-and-mortar stores because they like to see and
This dissertation is submitted in partial fulfillment of the requirements for the Degree in Marketing Practice
First, there are good numbers in the higher income categories in Australia. Second, there are an increasing high income earners and middle class which present a great market opportunity. Third, the Australia’s brand conscious society is well suited to the department store concept. Also, advanced computer-based technology and stable political environment contribute to a favourable business climate. The only drawback is economic uncertainty which hinders firms future strategic direction.
The main focus of Aldi is to offer the lowest possible price to the customer while operating their stores at the lowest cost as well. I have already stated how Aldi does not invest in advertising or any research of any kind and the main investment is in building new stores or logistics to supply those stores. But Aldi’s also uses the strategy of tricking its customers to do all the
Woolworths is the major supermarket grocery store chain in Australia, owned by Woolworths Limited. Woolworths is an incorporated public company, listed on the Australian stock exchange. This company has incomplete permissible responsibility through its shareholders and lies in the tertiary industry and retail sectors. Through their authoritative organization strategies and processes Woolworths has been able to make available to its 1.3 million customers a level of service, expenditure and manufacturing available across their franchise stores located across Australia. Woolworths' function as one of the largest public companies is obvious through its nature of management. This report will explain the nature and responsibilities of management in light of Woolworths.
Online commerce was introduced to consumers in the mid-1990’s, and in the years since, it has grown exponentially. It started out virtually nonexistent and has become a multi-billion dollar industry. Nearly every retail sector has entered online commerce; clothing, electronics, home, health and grooming items, even food and groceries are starting to gain traction online. Online commerce sites rival traditional brick and mortar stores such as Walmart and Target, as well as other big-box stores. As online retailers such as Amazon continue to expand, many brick and mortar stores have been making their way online, indicative of an increasing movement towards online commerce. With more than 80% of the online population having made an online