Business Strategy Report for Aldi: PESTLE Analysis, Porter's Five Forces Model, Ansoff Matrix, SAF Strategy Model

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Business Strategy
Report
7/25/2018
Student Name

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Contents
Introduction..............................................................................................................................................2
Task 1.......................................................................................................................................................2
Pestle Analysis.....................................................................................................................................2
Porter’s Five Forces Model..................................................................................................................4
Stakeholder analysis............................................................................................................................5
Task 2.......................................................................................................................................................7
Ansoff Matrix......................................................................................................................................7
International and Innovation strategy..................................................................................................8
Directions and methods.......................................................................................................................9
SAF strategy Model.............................................................................................................................9
Outline of the action plan...................................................................................................................11
Conclusion.............................................................................................................................................12
References..............................................................................................................................................14

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Introduction
Albrecht Discount Inc., globally known as Aldi is a German-owned discount supermarket
chain. Aldi opened its first supermarket in Ireland in 1999. Aldi is considered the market
leader in industry of international grocery retailing, owns, and drives chain in the discount
grocery stores in Europe, Australia, and the United States. The company is dealing in retail
stores and supply chain merchandise and food including meat products, frozen and
refrigerated food, sweet and snacks, dairy and bakery products, beverage and pantry products
in addition to the home care and personal care products. The company does not disclose its
sales or profits in Ireland. The company has over 10000 stores worldwide. The company has
a turnover of more than Euro 1.3 billion turnovers with more than 3500 employees, which are
performing at their best level (Aldi, 2018).
In present Aldi is using the analysis, which is done to identify and evaluate the strategies,
which can operation in the business environment. These strategies are used by the company
to evaluate the strategic options available to the company. The strategy used while evaluating
Aldi performance and strength includes the Ansoff matrix and SAF strategy. In this, the
company competitive advantage can be evaluated and analyzed. These strategies help to
identify the direction and methods used by the company and if there is any deviation in the
expected performance, corrective measures will be taken (Kiplinger, 2018).
Task 1
Pestle Analysis
Economic factors
The slowdowns in the economy in the developed countries found to be affected by the crisis.
The industry and customer both are affected due to the less purchasing power in economy.

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This is the reason Aldi starts giving the products on discount so that more goods can sell in
the market. Larger revenues, as well as the market share, will be grabbed by the company
(Pestle, 2013).
Social and cultural factors
In society, nowadays individual become socially responsible and wants the company to
remain responsible towards the society. Consumer tries to purchase the goods from retailers
who are adopting the sustainable practices. Aldi also tries to adopt the socially responsible
activities to remain competitive in the market (Drucker, 2014).
Technological Factors
Technology is altering the method consumer’s shops retail products and the way retail
businesses function in bad and good ways. Technology has been improved in the market by
using the mobile phones and commerce media, which provided the benefit to the retailer to
interact with the customers and give them more knowledge about the services. A company
like Aldi is using the Radio Frequency Identification Device (RFID) to facilitate end-to-end
tracking of ingredients and better stock control through business intelligence tools
(Shanmugam, 2013).
Environmental Factors
Aldi has increased the use of eco-friendly packaging in providing the products from their
store. The company has prompted to not to use the polythene bags in their business and try to
reduce the amount of pollution in the environment (Pestle, 2013).
Legal Factors