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Global Strategy Case Study

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Module 10: Global Strategy
Competition is fierce in the grocery industry, and one way to sustain a competitive advantage is to have a global strategy. Since opening in the 1900’s, Aldi has opened stores in over 18 countries and continues to grow their multinational enterprise (Aldi, 2017). There are several reasons why Aldi chooses to have a global presence which includes accessing larger markets and achieving economies of scale. To adapt to the culture in different countries, they vary the products sold in each store. Most importantly, Aldi has chosen to use a multi-domestic strategy to sustain a competitive advantage.
Product and Service Differentiation
Although Aldi is originally from Germany and many of their stores are in the …show more content…

While competitors such as Wal-Mart take the time to open new stores and receive objections from unions, Aldi does not have that problem because they are not seen as bad guys by the public (Clifford, 2011). The company has a significantly smaller layout than most of its competitors which allow for a quicker opening. They can penetrate the city, urban and suburban markets.
Also, Aldi can offer discounted prices by focusing on their private label, local produce, and other cost leadership strategies. For example, they carry products on pallets instead of shelves. Also, they don’t have to hire employees to stock merchandise or alter displays as their layout is relatively straightforward. Other ways they can offer discounted prices is by restricting store hours, not having free grocery bags and not having a variety of departments in the store such as pharmacies (Aldi, 2017). Offering customers low-cost products and a simple store format allows the company to maintain their core competencies across the globe.
Multi-domestic Strategy
There are several global strategies companies use to compete in the grocery industry, but Aldi focuses on the multi-domestic approach which is common in the food industry. Companies use the multi-domestic strategy if they want customers to think of them as a local company (Rothaermel, 2017). Although variety is limited at Aldi,

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