Aldi: History, Resources, and Market Entry in Australia

International
Business
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Table of Contents
Part 1...........................................................................................................................................................2
Answer 1..................................................................................................................................................2
Answer 2..................................................................................................................................................2
Part 2...........................................................................................................................................................3
Answer 3..................................................................................................................................................3
Answer 4..................................................................................................................................................4
Answer 5..................................................................................................................................................5
Part 3...........................................................................................................................................................6
Answer 6..................................................................................................................................................6
References...................................................................................................................................................8

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Part 1
Answer 1
Albrecht Discounts (Aldi) is a German organization in the retail industry founded by the mother
of Theo and Karl Albrecht in the year 1913. At first it was a small grocery shop outside their
home but the organization was not successful till 1930s when the two brothers, Theo and Karl
Albrecht took over the business (Alonso, Kok and O’Shea, 2018). The brothers started their
business after remodeling the shop into a showroom in the local area with effective procurement
plans and operations. But the brothers were running the business efficiently till the year 1960
when due to a dispute between two brothers over selling cigarettes, the organization was divided
into two divisions, Aldi North and Aldi South (Arli and Tjiptono, 2018).
Aldi North has its head office in Essen and operates in France, Portugal, Denmark, Spain,
Belgium, Luxemburg, Poland, and the Netherlands. Aldi South has its head office in Mulheim
and operates in Australia, UK, USA, Ireland, Austria and Switzerland. Aldi is a retail
supermarket that sells various kinds of grocery items and it consists of dairy products and meats
as well as another item of daily needs. It offers a discount to its consumers on certain days of the
weeks. It has 10,000 stores in more than 20 nations and combinedly the estimated turnover is
almost €50 billion (Arup, Beaton-Wells and Paul-Taylor, 2017). The organization has positioned
itself as a low-cost store which offers the right quality products to its customers.
Answer 2
The core resources and capabilities of Aldi are as follows:
Resources
Tangible Resources - These resources are physical resources which are utilized by Aldi for
maintaining its business activities. Factory, electrical equipment, machineries such as lorries and
forklifts, insurance policies, and security equipment like CCTV camera are all tangible resources
of Aldi (Azeem et al., 2018).
Intangible Resources - These are technological resources which are utilized by Aldi for
maintaining its business activities. Patents, copyrights, intellectual properties, software licenses,
accumulate experiences and skills are all intangible resources of (Aldi Bailey, Price, Pyman and
Parker, 2015).

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Capabilities - The organization treats its staffs as valuable assets and provides them the best
working conditions of the retail industry. It also makes an investment for a great deal of money
and time in the training and development of the staffs. One of the three purpose-built training
centers are assigned to every new staffs before they are employed in the stores so that they can
learn all the aspects while they are fully paid during the training (Bilińska-Reformat, 2016). Low
price along with best quality products are also the capabilities of Aldi as it helps to attract several
loyal consumers and keep them competitive in the market.
Competitive Advantage - Low price along with the best quality products of Aldi helps the
company to attract several loyal consumers and keep them competitive in the market. Aldi is a
supermarket and sells all types of goods so that they could meet all the preferences and needs of
the consumers. Substantial discounts are provided by the organization to its consumers and
goods are sold at a lower price which helps the organization to build better relations with its
organization and stay competitive in the retail market of its operating countries (Chatterjee,
2017).
Part 2
Australia is the chosen host country for Aldi as it also operates in Australia as a part of Aldi
South.
Answer 3
The culture of Germany is based on popular trends and major intellectuals of Europe and is both
secular and religious. Whereas the culture of Australia is a Western culture derived from Britain
along with by the exclusive geography of the country, the cultural contribution of Torres Strait
Islanders, Aboriginal and other inhabitants of Australia. German is the official language of
Germany while Australian English is the official language of Australia (Devin and Richards,
2016). Both countries are religious and follow Christianity.
The typical stereotypes of the people of Germany are that they are ruthlessly well-organized and
have little time for unessential activities and irrational behaviors. But it has been that this
stereotype is not as it showed from time and again. The people of Germany are silly and fun-
loving like the people of the rest of the world except at the checkout of Aldi. In the supermarket