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Innovation Assignment : Aldi Australia

   

Added on  2021-05-27

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Running head: INNOVATION IN ALDI AUSTRALIA Innovation as a Resource to a Sustained Business[Aldi Australia]Name of the student:Name of the university:Author note:
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1INNOVATION IN ALDI AUSTRALIATable of ContentsIntroduction......................................................................................................................................2Business Idea:..................................................................................................................................21. Problem Identification.............................................................................................................22. Proposed Business Model........................................................................................................33. Expected benefits.....................................................................................................................44. Critical Success Factors...........................................................................................................55. Evaluation of Feasibility..........................................................................................................6Conclusion.......................................................................................................................................7Quality of contribution and collaboration:......................................................................................71. Contribution to the team..........................................................................................................72. Achieving group consensus.....................................................................................................73. Portfolio of materials...............................................................................................................8References........................................................................................................................................9Appendix........................................................................................................................................11
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2INNOVATION IN ALDI AUSTRALIAIntroduction Innovation is of utter importance to respond to the emerging trends and be able to attain asustained business performance. The degree of threats increases with the level of competition inthe respective industries. This particular study is confined to the supermarket industry inAustralia. The supermarket industry in Australia is highly competitive due to a fact that there aregiant supermarket brands such as Woolworths and Coles and also that the competition policy isquite favorable to new business (Tanaka et al., 2017). Additionally, the proposed entrance ofAmazon in the country will further the level of competition. Hence, this is important that theexisting supermarket brands are efficient enough to use the innovative strategies in order toremain competitive and produce the sufficient reasons for customers to think of a visit. This study is focused on identifying the best feasible business model to the chosenorganization Aldi. The ‘needs' for a business model has been felt due to the changing behavior ofconsumers for shopping and also due to the proposed entry of Amazon in Australia. Aldi whichhas steered the Australian market with its innovative and cost-effective business model shouldconsider the proposed model in this study in order to remain progressive with sales andcompetitive as well in the market. Hence, the study is purposefully aimed at proposing a suitablebusiness model to Aldi and also highlighting the group work in regards to quality of contribution& collaboration. Business Idea:1. Problem IdentificationAldi has received a great response from the Australian customers and it is also ahead toColes & Woolworths in terms of a profitable venture in the last five years (Thomsen, 2018).
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3INNOVATION IN ALDI AUSTRALIAHowever, the real worry is the changing landscape of shopping formats. The ‘Brick & Mortar’format of stores is now seen as an outdated option by many customers in specific the youths.This is due to the shopping interface and the ease of shopping which is inferior to ‘ShoppingOnline’ format (Pappas et al., 2016). Youths, in general, used to have the packed schedules intheir universities, workplaces and others. They hardly have times to visit physical stores andpurchase the needful goods. Many of them manage it during their week offs while others wish tospend their week offs on other important works. In addition, the youths are expected to be thecustomers of future as they will be doing the maximum of shopping in the coming days(Thananuraksakul, 2018). These are the few reasons which have encouraged the youths inspecific to incline to the online shopping where they can purchase the needful products by justfollowing the few online procedures on either their PCs or the Smartphones. They are not nowrequired to be in physical stores to make the purchase (Gao & Bai, 2014). The above facts have outlined a few issues such as Aldi like other giants may struggle toattract the youths who are expected to be the future customers. Additionally, the entrance ofAmazon may give enough reasons to customers to use it as their shopping platforms. Hence, thesuccess that Aldi had in the last five years may be eclipsed due to the changing shoppingbehavior of customers.2. Proposed Business ModelThe escalated threats such as the changing shopping behavior of Australian customersand also the expected entry of Amazon in the country require a solid counter response from Aldiand other supermarket giants. The existing business model is cost-effective due to a fact that ittakes a different route than the traditional one to offer discounted rates. It offers discounted rates
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