Ways Lidl & Aldi Succeeded in Supermarket Business

Project

Table of Contents
Project..............................................................................................................................................1
1. Stating the ways through which Lidl & Aldi succeeded in supermarket business ................3
2. Explaining the manner in which top retail sector organization of UK could increase their
market share................................................................................................................................4
REFERENCES ...............................................................................................................................6

1. Stating the ways through which Lidl & Aldi succeeded in supermarket business
Aldi & Lidl are seen as the successful organization in terms of their superior strategic
alignment in between commercial & the supply chain policies that includes segmentation. It
enables the companies in working as more effectively with predictable and stable underlying
demand, this removed need for the costly buffers over uncertainty across supply chain. There are
various factors that helped both the firm in attaining growing success against various retail sector
organization operating under supermarket store that are as follows-
Globalisation- It means as the spread of the technology, products, job and information
around the national cultures and borders. It reflects an interdependence of the nations across the
world that has been fostered through a free trade (Schmid and et.al., 2018). This process plays a
crucial role in the success of both the discount superstores as it provides for integration &
interaction among the people, government and the companies around the globe. It made easier
for the companies to outsource the production process to the countries with the low cost of
labour. An entity could make use of the technology for interacting with the people at global level
which enabled the firm in reducing the prices & cost.
Global economy- In the year 2015, the corporations has achieved combined value of
revenue around 10% of grocery sales. Since the year 2011, both the companies had seen their
UK revenue more than the doubled value because they had created the no-frills strategy which
had been resonated with customers post global or economic crisis. Both enterprise offers limited
range of the products that are owned by it at competitive price which helped the firms to attain
worldwide success.
Low cost operations- Aldi and Lidl has adopted the low price strategy in order to achieve
competitive advantage against its competitors and intends to be more successful when a product
is been fairly generic & high volume units are produced. Both the organizations work closely
with their suppliers for the purpose of minimizing the cost of supply chain so that they are been
able to offer the consumer with some form of an excitement for creating an interest of consumers
and attracting large audience to visit the store (Lauer, 2019). This strategy helps the firms in
attaining a loyal customer base with large market share as compared to the other retailers and this
lets them to success in retail business segment of UK.
Demographics- It reflects the collection & analysis of the broad features regarding the
group of population and business. It is counted as the most useful data for the businesses for