Strategic Planning and Management Practices of Aldi Australia

Running Head: BUSINESS STRATEGY 1
Business Strategy (Management)

BUSINESS STRATEGY 2
Table of Contents
Introduction.................................................................................................................................................3
Strategic Planning........................................................................................................................................3
Porter’s Five Forces Analysis....................................................................................................................3
SWOT Analysis.........................................................................................................................................4
Data Analysis Strategies..............................................................................................................................5
Strategic Direction.......................................................................................................................................5
Managerial Strategy....................................................................................................................................5
Organization’s Strategic Management Practices.........................................................................................6
Recommendations and Conclusion.............................................................................................................6
References...................................................................................................................................................7

BUSINESS STRATEGY 3
Introduction
Aldi Australia is leading retailer of Germany that has started its business operations in 1948 by 2
brothers Theo and Karl. Currently, the company has converted in a major food retailer all over
the world. In Australia, Aldi has established its business in the year 2001 and it is emerging over
the years. It is a discounted supermarket chain that owns more than 10000 stores in 20 nations
with a forecasted turnover of over €50 billion (Aldi Supermarkets, 2018). By implementing
effective strategies, Aldi Australia is able to establish an image of discounted retail store. It is
operating its business in Australian retail sector. The industry has experienced significant growth
in past few years and it has attained the revenues of $20 billion.
Strategic Planning
By researching the organization, I found that Aldi Australia is using different techniques and
frameworks to analyze the market and design its strategies (David, 2011). The strategies analysis
of Aldi Australia is discussed below:
Porter’s Five Forces Analysis
Industry Rivalry
This is one of the most important forces that help my chosen organization to analyze the
competitiveness in the industry. For Aldi Australia, competition is intense as there are various
brands which offer retail products by using price comparison techniques. This rivalry leads Aldi
to implement aggressive marketing activities to capture market share (Knox, 2015).
Bargaining Power of Buyers
For Aldi Australia, bargaining power of customers is high because they can make choices about
which retailer to use very easily on the basis of ease to access, discounted offers and availability
of products. This force assists the organization to understand the needs and wants of customers
towards retail products (Euromonitor International, 2018).
Bargaining Power of Suppliers