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Aldi's Expansion In Australia

Decent Essays

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

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