Differentiation Strategy and Comparison of Aldi with Coles and Woolworths

Business Strategy
Student:
Institution:

Meaning of Differentiation
Strategy
 Used by competing companies to
distinguish their products and services
(Armstrong, 2015, 77).
 Companies come up with unique
products or services for their customers.
 Some aspects of differentiation include
brand image, design, features, and
quality.
 Its part of Porter’s generic strategy.
 It can be on the basis of price, product,
or the organization.

Comparison of Aldi with Coles and
Woolworths
 Aldi has a stronger differentiation
strategy.
 Use of directing marketing lowers
costs.
 Receives high customer ratings.
 It uses own brand labels
 Strong position and suitable location
 Social media marketing.
 Fast expansion.

Differentiation strategy used
in Aldi, Coles, Woolworths
Coles
 Quality products
 More stores
 Better customer
experience
 Strong
organizational
culture
Woolwarth
s
•Product
diversity
•Strong
vision
based on
quality
•Expansion
to Africa
Aldi
•Strong entry in
grocery
markets
•Self-service
checkouts
•Oversea
expansion
•Target on low
income
consumers
•High customer
differentiation
Aldi
coles
Woolworths