Aldi, a discount supermarket retailer, has grown from its Germanbase to the rest of Europe, Australia, and the United States byreplicating a simple business format. Aldi limits the number ofproducts (SKUs in the grocery business) in each category to ensureproduct turn, to ease stocking shelves, and to increase its powerover suppliers. It also sells mostly private-label products tominimize cost. It has small, efficient, and simply designed stores.It offers limited services and expects customers to bring their ownbags and bag their own groceries. As a result, Aldi can offer itsproducts at prices 40 percent lower than competing supermarkets.(350 words)
- Identify and critically discuss the business level strategyadopted by Aldi to outperform rivals and achieve competitiveadvantage.
- Explain the potential pitfalls of Aldi’s strategy and how itcan improve company competitive position vis-à -vis the fiveforces.
