Aldi is doing well to benefit consumers, as it avails cheaper products through ensuring low cost of production. This is achieved through low employee costs, in house branding and packaging, limiting external products and low transport costs.
But, this strategy in the long run can ruin the economy as it can result to collapse of several industries and as a result mass loss of employment. This is because of the ripple effect Aldi is bringing in areas it has operations.
To increase level of satisfaction and attract new clients Aldi need to increase variety of products on its shelves. This will give consumers power of choice.
To increase level of satisfaction and attract new clients Aldi need to increase variety of products on its shelves. This will give consumers power of choice.
It is very possible that many people shun Aldi because of its few external products. Also, Aldi need to up their marketing tactics.
This may include use of social media platforms and paid Ads. By relying on internal marketing and a few external advertisements, Aldi misses an opportunity to reach potential clients.
Aldi employs integrated cost leadership with differentiation business-level strategy. This is because it has lower prices than competitors (Hitt, 2020), and where it opens outlets the existing firms in the same industry must lower their prices.
Aldi employs integrated cost leadership with differentiation business-level strategy. This is because it has lower prices than competitors (Hitt, 2020), and where it opens outlets the existing firms in the same industry must lower their prices.
Also, by limiting external products Aldi differentiates it products. If Aldi chooses another business strategy like differention or focused cost leadership, it might not perform well as it has been doing.
