Aldi's Strategic Innovation: Bricks and Clicks Business Model Analysis

This report examines Aldi's strategic innovation through the implementation of a 'Bricks and Clicks' business model. It explores the innovative process, highlighting the development of an online shopping platform and mobile application designed to enhance customer satisfaction and loyalty. The analysis details the benefits of this model, such as attracting younger generations and improving cost efficiency, while also addressing technical, financial, and operational constraints like the need for skilled technical expertise, budget limitations, and operational challenges. The report concludes that the 'Bricks and Clicks' model can help Aldi expand its customer base and maintain a strong market position by adapting to modern shopping trends and providing convenient online shopping experiences. The bibliography includes relevant sources supporting the analysis.

Running head: IDEA GENERATION
Innovation as a Resource to a Sustained Business
Name of Student
Name of University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Description of the innovative process........................................................................................2
Benefits and significance of the idea.........................................................................................3
Technical, financial and operational constraints of the idea......................................................3
Conclusion..................................................................................................................................4
Bibliography...............................................................................................................................7

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Introduction
Innovation is necessary so that organisations can attain success in the market.
Innovation includes enhancing the products that already exist in an organisation so that it can
be appealing to the customers. The assignment focuses on the innovation tactic that is
adopted by Aldi, one of the leading retail stores in the world (Gao & Bai, 2014). The focus is
on the manner in which Aldi can abstain from the traditional shopping and adopt “Bricks and
Clicks Business Model” as a means of satisfying customers. The innovative technology can
be used to identify the preferences of the people and at the same time ensure that the loyalty
of the customers is maintained.
Description of the innovative process
Innovation is essential for bringing about rapid changes in an organisation. The rapid
changes help in bringing about the satisfaction of the customers based on the needs and
demands made by them. The descriptive innovation process that a company like Aldi can
adopt denotes the online shopping opportunities of the customers. For this, “Bricks and
Clicks Business Model” can be developed so that the customers can get easy access to the
website of the company. Smart strategies can be developed so that the layout of the
innovation process can be analysed. At the same time, the application can provide
opportunities to customers so that they can have a choice between visiting the physical stores
and the purchasing things online.
The online application in the mobile phones can help the customers get discount on
the products that they purchase. The customers can commit to the purchasing of the materials
either by using online or by visiting the physical stores. Therefore, it can be said that the
application of the “Bricks and Clicks Business Model”can help the company to continue its

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production in the business. Aldi can use the new innovative product for the satisfaction of the
customers as well as to ensure that the business deal of the company is maintained (Batra &
Keller, 2016). Thereby, it can be said that the business objectives are aligned with the
innovative process so that the company can achieve its necessary target of becoming the
number one brand in a global level. Therefore, it can be said that this can be of advantage as
the total cost of production can improve due to this particular process.
Benefits and significance of the idea
The application of the innovative process can offer certain benefits to Aldi based on
which the significance of the process can be determined:
 It can attract the younger generation in shopping for products. Normally it is seen that
the people consider visiting the physical stores as a backward tradition. The reason for
this is that in the modern world, the manner in which the development of technology
have provided companies with an opportunity to explore ad customers with an
opportunity to lead life in a positive manner (Hagberg, Sundstrom & Egels-Zandén,
2016).
 The “Bricks and Clicks Business Model” can help in ensuring that the total cost of
production can improve. At the same time, it is also necessary that the marketing
strategies developed in the company can also be enhanced. One of the advanced
features of the innovative product is that it can be carried around and people can use
the application at any time during the course of day.
Technical, financial and operational constraints of the idea
Technical: The application of the “Bricks and Clicks Business Model” can have a
technical fault in a way that people need to be recruited so that the development of the

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application can take place. The manner in which the application can be developed highlights
the success the company can have. It needs to be kept in mind that the “Bricks and Clicks
Business Model” need to be user friendly and at the same time easily assessable to the
people. Therefore, without trained technical expertise it can be difficult for Aldi to ensure the
proper application of the product (Jones & Livingstone, 2015).
Financial: The financial constraint can be the budget. Although Aldi is a reputed
organisation, the revenue of the company may still pose problems for the successful
implementation of the “Bricks and Clicks Business Model”. This is mainly because the model
requires technical assistance as well as guidance for the users that require exceptional
software development skills. Therefore, spending money on these items can hinder the
company from focusing on other aspects of development. At the same time, it needs to be
kept in mind that the application helps in the production of the company in a manner that
provides an understanding of the objectives of Aldi.
Operational: The operational issue that Aldi can face is the fact that the technical and
financial competence of the company may prevent it from continuing with its application. As
stated by Newman, Wachter and White (2018) the operational function of the company
provide an analysis of the resources available for manufacturing an effective product.
Therefore, it can be said that in the case of Aldi, the company can ensure that the operational
constraint about getting the available resources and labour can hinder the success of the
“Bricks and Clicks Business Model”. Therefore, this can be considered as a manner that need
to be mitigated by the company.
Conclusion
Conclusion can be drawn based on the evidence that the online mobile application can
help Aldi to attract more customers. The customers of the company can remain loyal as the

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implementation of the online facilities can help the customers to understand the capabilities
of the company. Therefore, the application of the “Bricks and Clicks Business Model” can
help Aldi to improve its customer base and at the same time improve the business model so
that it can grow in the markets around the world. The application of the online format can
help in attracting the youths and ensure that convenience in the shopping can be achieved so
that a proper business proposition can be formulated in the organisation.

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Bibliography
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