BUS100 Company Report: Aldi Supermarket in International Markets

This report provides a comprehensive analysis of Aldi Supermarkets, a major international retail organization. It begins with an overview of the company, followed by an examination of its strengths, including effective pricing policies and a proper product mix. The report highlights Aldi's ability to offer affordable products and a wide range of merchandise, attracting a diverse customer base. However, the report also addresses a key criticism: the high level of competition in the international markets. The report concludes with recommendations for improvement, such as increased investment in advertising and exploring online market opportunities. The report emphasizes the need for Aldi to adapt to the evolving market dynamics and maintain its competitive edge in the retail industry.

Running head: COMPANY REPORT – ALDI SUPERMARKET
COMPANY REPORT – ALDI SUPERMARKET
Name of the Student
Name of the University
Author Note

1COMPANY REPORT – ALDI SUPERMARKET
EXECUTIVE SUMMARY
The following paper discussed the various strengths and the criticisms of company. The paper
opened with a discussion on the overview of the company in discussion. The paper thereafter
proceeded to discuss two different areas of excellence as is observed for the company during the
operations in the international markets. The paper thereafter proceeded with a discussion on an
area of criticism as is faced by the company in the international markets. The paper finally ended
with a few recommendations so as to increase the performance of the company in the
international markets.

2COMPANY REPORT – ALDI SUPERMARKET
Table of Contents
Introduction..........................................................................................................................3
Company description.......................................................................................................3
One aspect the company excels at: Pricing Policies.......................................................3
Another aspect the company excels at: Proper Product Mix..........................................4
One aspect that the company is criticized for: High Competition...................................4
Recommendation.................................................................................................................5
Conclusion...........................................................................................................................5
References............................................................................................................................6

3COMPANY REPORT – ALDI SUPERMARKET
Introduction
Aldi Supermarkets is one of the major retail organizations that is active in the
international markets. The following paper attempts a discussion on the various strengths and the
criticisms of company. The paper opens with a discussion on the overview of the company in
discussion. The paper thereafter proceeds to discuss two different areas of excellence as is
observed for the company during the operations in the international markets. The paper thereafter
proceeds with a discussion on an area of criticism as is faced by the company in the international
markets. The paper finally ends with a few recommendations so as to increase the performance
of the company in the international markets.
Company description
Aldi supermarkets is one of the major retail chains that had been functioning in the
international markets. The company had been one of the major supermarket chains that were
founded by two German families in the year 1946. The company is known to have been owning
over ten thousand retail stores in the international markets. The company is known to have been
consisting of several functional units all over the international units. The company is known to
have been operating at over 11234 locations that have been spread over more than 20 countries
all over the international markets (Aldi.com.au, 2020). The company is known to have been
headquartered in within the territorial boundaries of Germany. The company in discussion, ALDI
supermarkets is known to have an employee strength of over 160584 employees in the
international markets (Aldi.com.au, 2020). The revenue earned by the concerned company had
been around 70 billion US dollars in the year 2017 (Aldi.com.au, 2020).
One aspect the company excels at: Pricing Policies
The major factor that has been highlighted as one of the factors of excellency within the
company refers to the pricing policies that are undertaken by the company. The pricing policies
that are undertaken by the concerned organization highlight the affordability of the products that
are offered to the clients. The retail chain functioning within the international markets is known
for offering the products at very low and affordable rates to the concerned clients. The lower
rates that are offered by the concerned retail chain help in the attraction of the clients to the
concerned products and the outlets within the several international markets (Hanna and Dodge,
2017). The low prices that are offered by Aldi supermarkets help in attracting the client base that

4COMPANY REPORT – ALDI SUPERMARKET
belong to the low and the average income range. This in turn leads to the maintenance of the
various activities that are highlighted in terms of the increase in the client base of the
organization. The company might be advised to undertake several activities and policies in order
to increase the sales and the client base of the company (Mandal, 2019). The low pricing policies
as are being practiced by the organization helps in the growth of the company in the various low-
economy areas as have been highlighted within the international markets (Li et al., 2016). The
low cost of the products marketed by the company would further help in the attraction of the
various business opportunities within the concerned arena which in turn might assist the
company in gaining a competitive edge over the other products.
Another aspect the company excels at: Proper Product Mix
The other factor that is known to have been an area of excellence for the given company
refers to the conditions of the proper mix of the products that are available at the various stores
that are maintained by the company in the international markets. The availability of a wide range
of products at the Aldi stores help in attracting a larger crowd to the concerned organization. The
proper nature of the product mix as has been available to the clients of the organization are
known to have been helping the clients to receive a greater variety of products under the same
roof (Yang, Zhang and Zhang, 2017). The company is known to have been selling various
products that belong to category of the general merchandise. The general merchandise as is being
sold by the retail chain is known to have been occupying over one-fourth of the total shelf space
as is available within the given stores. This helps in the availability of a wide range of products
that are generally accessed by the concerned clients (Wang, Wei and Caswell, 2016). The
product mix as is highlighted in the Aldi supermarkets highlight the fact that the clients are
offered both premium brands and private label brands under the same roof (Hisrich and
Ramadani, 2017). The products showcased under the premium brands as are offered by the
concerned retail chain however are not offered on discount as is observed to be the case with the
private label brands.
One aspect that the company is criticized for: High Competition
The company is generally criticized for the high competition that the company faces in
the international markets. The concerned organization is known to have been facing a greater
amount of competition among the various companies that are active in the given international

5COMPANY REPORT – ALDI SUPERMARKET
markets. The high amount of the competition that is undertaken by the various organizations
often lead to the lack in the proper revenues that are earned by the concerned organization
(Azzam and Ali, 2019). The international markets in terms of the retail stores are observed to
have been providing a greater amount of competition to the stores that offer comparatively lower
prices. The various retail stores that are present all over the world tend to have been dealing in
the various matters that are related to the intense competition that exists within the concerned
industry (Gu, 2016). The competition that is faced by the concerned organization is known to
have increasing due to the entry of the other companies in the international markets. The
company has been facing major issues due to the entry of the various other retailers like
Amazon, Walmart and other such companies in to the retail markets related to grocery and other
such materials (Sheikh, 2019). The presence of the various other organizations in the given
markets often act as a high threat to the concerned retail organization. This increase in the
competition levels might lead to the decrease in the client base of the company, Aldi
Supermarkets.
Recommendation
In order to overcome the issues as have been discussed in the previous sections, the
company might be advised to invest more on the advertising activities. The proper investment
on the various advertising activities that are undertaken by the company in discussion, Aldi
supermarkets, would help the company to attract a greater number of potential clients to the
organization.
The company might further be advised to highlight certain measures that would be
required in order to venture into the online markets. The introduction of the company to the
online markets would further help in the improvement of the client base of the company in the
international markets.
Conclusion
In conclusion it might be stated that the company in discussion, Aldi Supermarkets, is
known to have a plethora of benefits that are observed to be present in the international market
scenarios. The company is further advised to invest in the advertising activities as well. The low
cost of the products marketed by the company would further help in the attraction of the various
business opportunities within the concerned arena which in turn might assist the company in

6COMPANY REPORT – ALDI SUPERMARKET
gaining a competitive edge over the other companies that have been featuring within the
international markets.

7COMPANY REPORT – ALDI SUPERMARKET
References
Aldi.com.au, 2020. ALDI Supermarkets - Good Different - ALDI Australia. [online] Aldi.com.au.
Available at: <https://www.aldi.com.au/> [Accessed 13 January 2020].
Azzam, Z.A. and Ali, N.N., 2019. The Relationship between Product Mix Elements and
Consumer Buying Behavior–A Case of Jordan. Global Journal of Economics and Business–
Vol, 6(2), p.376.
Gu, L., 2016. Product market competition, R&D investment, and stock returns. Journal of
Financial Economics, 119(2), pp.441-455.
Hanna, N. and Dodge, H.R., 2017. Pricing: policies and procedures. Macmillan International
Higher Education.
Hisrich, R.D. and Ramadani, V., 2017. Entrepreneurial Marketing Mix. In Effective
Entrepreneurial Management (pp. 75-99). Springer, Cham.
Li, B., Zhu, M., Jiang, Y. and Li, Z., 2016. Pricing policies of a competitive dual-channel green
supply chain. Journal of Cleaner Production, 112, pp.2029-2042.
Mandal, P.C., 2019. Public Policy Issues in Pricing: Strategies and Initiatives. International
Journal of Applied Management Theory and Research (IJAMTR), 1(2), pp.17-30.
Sheikh, S., 2019. Corporate social responsibility and firm leverage: The impact of market
competition. Research in International Business and Finance, 48, pp.496-510.
Wang, E.Y., Wei, H. and Caswell, J.A., 2016. The impact of mandatory trans fat labeling on
product mix and consumer choice: A longitudinal analysis of the US Market for margarine and
spreads. Food policy, 64, pp.63-81.
Yang, H., Zhang, D. and Zhang, C., 2017. The influence of reference effect on pricing strategies
in revenue management settings. International Transactions in Operational Research, 24(4),
pp.907-924.