Management: Competitive Advantage and Growth Strategies of Aldi

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

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Introduction:
The modern business industry is observed to be notably competitive and growing as
well. The intense competition of the market is pretty visible with the organizations lowering
the pricing of the products and the services that they offer to the customers. One of the prime
reason of the increasing competition in the business industry is observe to be the increment in
the number of new organizations entering the market (Thomassen et al. 2017). The entry of
the new organizations with the lucrative offers and discounts for the customers is seen to
produce notable amount of difficulty in the survival and growth of the existing organizations.
Under such situation, the organizations are seen to be left with two options that are the
improvement of the quality of the products and the services and the application of the
competitive pricing policy to make sure that the survival of the other organizations become
difficult (Rhodes and Brien 2014). It is observed to be difficult to apply both for a company,
however, there are notable amount of benefits for the organizations that are capable of
applying both the strategies in a simultaneous fashion (Kim, Suresh and Kocabasoglu-
Hillmer 2013).
In addition to this, it can be said that there are significantly limited number of
organizations that are capable of applying both the strategies simultaneously and the German
organization Aldi is one of them. The paper is focused in the elaboration of the various
aspects of the business conduction of the chosen organization Aldi, that are capable of
producing the much required competitive advantage to the chosen organization over the
competitor organizations. Adding to this, the paper includes an external and internal
evaluation of the chosen organization to state the strengths and weaknesses of the
organization along with the condition of the market in which it is currently operating. The
paper assesses the communication strategies of the organization for the formation of the path

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of improvement and along with that, the paper also elaborates the specific objectives and the
motives that have contributed to the rapid growth of the organization.
Organizational Overview:
The chosen organization operas in the retail industry and is a common brand that is
created by two family owned discount supermarket chains. The company was established in
the year 1946 when two brothers, Karl Hans Albrecht and Theo Paul Albrecht took over the
store of their mother which was there in Essen from the year 1913 (Aldi.com. 2019).
However, the organization was observed to be divided into two entity in the year 1960 and in
the year 1962, both the divisions in the form of Aldi Nord and Aldi Sud achieved significant
amount of market limelight (Aldi.com. 2019). The organization was observed to offer mainly
food and beverage products to the customers of it. However, the list also included household
essentials and the sanitary products as well. The gross revenue of the organization in the base
country is observed to be 30.453 billion Euro in the year 2017 where Aldi Sud contributed
16.952 billion Euro and Aldi Nord contributed 13.501 billion Euro (Aldi.com. 2019). The
company is observed to have two different headquarters for the improved business operations
of the mentioned units and one of them were observed to be in Essen, Germany and the other
one was located in Mulheim, Germany (Aldi.com. 2019).
Internal Evaluation:
Strengths:
The application of the low pricing strategy is observed to be one of the key strength of
the chosen organization and it is also considered to be one of the prime reason for such large
customer base of the organization. With 10000 stores in 20 different countries, the
organization is seen to reach to the doorsteps of the customers (Aldi.com. 2019). Along with
that, there are notably limited number of competitor organizations that have the potential to

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match the pricing of the mentioned organization even after producing quality in the product
and the services that they offer to the customers.
Increased product chain:
The organization is seen to be capable of providing a wide range of products to the
customers and majority of them are observed to be essential need of the customers which are
consumed on a regular basis (Pechey and Monsivais 2015). Hence the repetitive purchases
from the part of the customers of the organization is seen to be notably helpful for the
organization in generating larger amount of profits.
Expansion of business:
The chosen organization is seen to have a strong presence in the base country with
2500 number of operational stores and along with that, the global business conduction of the
organization has also improved over the years in a significant manner and that is pretty
evident with the opening of 10000 stores in the various nations of Europe and in other parts
of the globe (Skordili 2013).
Improved Level of Customer Support:
The organization is seen to be significantly efficient in meeting the varying
preferences of the customers. The organization is seen to be capable providing the daily
needs of the customers in a considerably affordable price. Along with that, majority of the
customers of the organization were seen to be delighted with the after sales services of the
organization which is instrumental in the generation of the increased amount of customers’
satisfaction that triggers the customers in repetitive purchasing of the products of the chosen
organization (Empen, Loy and Weiss 2015).