Research Project: Digital Technology's Impact on ALDI and LIDL

This research project examines the impact of digital technology on the profitability and productivity of ALDI and LIDL, two major discount supermarket chains. The project begins with a research proposal outlining the research question, objectives, and rationale, supported by a literature review exploring the role of digital technology in business success, particularly for discount retailers. The methodology section details the research philosophy, approach, design, strategy, data collection methods, and analysis techniques. The study aims to analyze how digital technology influences the profits of ALDI and LIDL, considering various techniques such as cross-docking, social media engagement, and AI in production. The research investigates advantages and disadvantages of digital technology, assessing its impact on business performance. The project includes a timeline, references, and an executive summary, culminating in conclusions and recommendations for leveraging digital technology to enhance business outcomes. The findings communicate research outcomes in an appropriate manner for the intended audience and reflect on the effectiveness of research methods applied.

RESEARCH PROJECT:
The impact of digital
technology in improving
profits of business: ALDI and
LIDL.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
P1 Produce a research proposal that
clearly defines a research question or
hypothesis, supported by a literature
review............................................................................................................................................4
Overview of organisation:..............................................................................................................4
Research aim:.................................................................................................................................5
Research objective:........................................................................................................................5
Research question:..........................................................................................................................5
Rational:.........................................................................................................................................5
LITERATURE REVIEW................................................................................................................6
METHODOLOGY..........................................................................................................................9
Research Philosophy......................................................................................................................9
Research Approach........................................................................................................................9
Research Design...........................................................................................................................10
Research Strategy.........................................................................................................................10
Data Collection Methods..............................................................................................................10
Data Collection Tools...................................................................................................................11
Sample..........................................................................................................................................11
Analysis........................................................................................................................................11
Limitation.....................................................................................................................................11
TIMELINE OF RESEARCH ACTIVITIES..................................................................................12
REFERENCES..............................................................................................................................13
Executive summary..........................................................................................................................1
P2 Examine appropriate research
methods and conduct primary and
secondary research.........................................................................................................................2
Research aim:.................................................................................................................................2

Research objective:........................................................................................................................2
Research question:..........................................................................................................................2
Rationale of the study.....................................................................................................................3
Significance of the study................................................................................................................3
LO 2.................................................................................................................................................4
P3 Research Methodology.............................................................................................................4
P4 Result and findings....................................................................................................................6
Conclusion....................................................................................................................................19
LO 3...............................................................................................................................................19
P5 Communicate research outcomes in
an appropriate manner for the
intended audience.........................................................................................................................19
LO 4...............................................................................................................................................20
P6 Reflect on the effectiveness of
research methods applied for meeting
objectives of the business research
project...........................................................................................................................................20
P7 Alternative research methods..................................................................................................21
Appendix........................................................................................................................................22
REFERENCES..............................................................................................................................24

INTRODUCTION
Making and helping all the operations of business in the sense of digital platform that is
allowing firms to grow and develop into the market place with increase in their sales and profits
of company as well. This is aiding business whether they are small or big whatever is their
operation into market if they are not using or applying any form of technological advancement
into their business traditional methods would not be helping them in long run. So, it is necessary
in part of all companies that they are using and implementing the use of technology within their
production, marketing and human resources or selling of the products and service as well. In this
current research report that is based on technology we would be studying about the impact of use
of digital technology in improving profits of company like that of ALDI and LIDL. In would be
including what is the effect on company and their profits if they are using, implementing and
applying digital technology into their day to day working that too in all departments of company.
P1 Produce a research proposal that
clearly defines a research question or
hypothesis, supported by a literature
review.
As traditional techniques would not be allowing company to use logistic practice or either
reducing their cost of capital? Company should also be using cross docking techniques that
means loading and unloading of goods from one transport vehicle to the other on direct bases so
that this is avoiding storage cost. This technique if is used by company then they would be
ensuring that there is no shortage or wastage of products.
Digitalisation of business operations will be mostly effective for company as it will be
leading to more increased in number of profits and revenues of firm. With the help of this digital
technology it is essential for company to gain more and more customers if they are been using it
within their business activities. Like with the use of digital technology company is able to remain
in touch with their customers by social media application and receiving feedbacks.
Overview of organisation:
ALDI and LIDL are the two major competitors which are based on Germany and having
their operations in rest of EU, Asia and Australia as well. ALDI which is having two major
brands under it is a discount supermarket chain in retail industry this is providing and using
technologies into their working. On the other hand, LIDL is another discount supermarket chain
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which is German based but is operating only on EU and USA with about 10000+ stores all over.
Both of them are selling products both at retail and wholesaling bases that too on discount bases
as this is causing them higher profits in market. Digital technology is now the base of both these
supermarket retail chain which they are using in most effectively.
Research aim:
To analysis the impact of digital technology in improving profits of business: ALDI and
LIDL.
Research objective:
 To analysis the impact of digital technology in improving profits of business.
 To ascertain the contribution into success of retail discounters like that of ALDI and
LIDL.
 To recommend the ways in which they could enjoy this success in permanent bases.
Research question:
11 How digital technology affects Aldi and Lidl profitability and productivity?11 What do you mean by digital technology and its various techniques?11 What are different advantages and disadvantages of digital technology within
organisation?11 Is digital technology boots business performance of Aldi and Lidl?
Rational:
As it is included that digital technology is main aspect of business and other lifestyle of
people of world they are using and inventing new form of technology very frequently. It is also
necessary that application of digital technology into company should be emphasised so that their
profits are been improved. So, this study on impact of digital technology is very much important
at current time so that company is able to analysis what is the effect on their profits and revenue
generation as well. Technology is that aspect of business in today’s time which is making and
helping firms into their success and especially that of discount retailers like that of ALDI and
LIDL.
The research is very much important as it is including impact of digital technology on
business activities of two organisation ALDI and LIDL. The impact can be both positive and
negative one so they need to be included within this research.
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LITERATURE REVIEW
As per Bughin, Chui and Manyika, (2010) it is included that digital technology is
enabling companies whether large or small scale in getting success and profits out of their efforts
which they are putting into company to make them grow. It was seen that ALDI it regarded to as
market leader in this high discount industry as they are acting as role ideal for all other firms
present into market. Till the year 2009 both ALDI and LIDL were into top 10 global retailers in
the race of discount chains as they having annual income of more than $60 billion.
Bharadwaj, El Sawy and Venkatraman, (2013) said that customer in market majorly
focus on mainly two to of the factors which are cost and quality of products that are been sold
and manufactured by company. So, the aim of company must also be on providing the best
quality of products which is giving their customer the best price as well. This could be attained
by firms in market by certain policies which is required to be implemented within like that of:
better operations, improving the share of private labels that too in affordable prices, maintain of
quality in products and that in services is also important and then limiting the variety of all
products and service of company.
As it was included by Michelini, Principato and Iasevoli, (2018) that of high discount
retailers are providing only limited variety or choice of products but at best quality is the most
vital aspect of them and their market. If the companies are providing limited range of products
but on higher quality of products here it would also be having stock keeping units (SKU) into
each group of products. Both the market leaders are mainly focusing on everyday products as
these are those products which customers are purchasing and consuming on daily bases. So
company must be focusing on technological advancement in these types of daily use products
and also providing discount to its customers.
It is required for all companies and especially like that of ALDI and LIDL that they are
giving discount to their customers which would be enabling them to improve profits and revenue
for company. Li, (2018) also included that company which are focusing on quality not on
quantity are the one who would be regarded to like as market leaders with giving limited range
of products as well. This could be done if companies like that of ALDI and LIDL are using better
and efficient methods of quality and food control which is enabling customers with better quality
of products. It was also seen that efficient and that operation that is cost effective for company is
support or main pillar for all discounted retailers (Stankovska Josimovski and Edwards 2016).
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There are included two major things or elements which are reduced in working capital and
frequent or fast delivery of products.
Tata, and McNamara, (2018) said that if company wants to earn higher and more profits
then they should be applying the use of efficient and effective form of technology which is the
modern one. Bughin, Chui and Manyika, (2010) by giving example of checkout counters in
ALDI which is good example of use of technology like that of short and precise having no kind
of buffer zone at its counters. In this process it is easy for customers for their easy purchase and
making payment of goods which is purchased by them in transferring products on easy and fast
bases and then making payment at the end of door.
In this way out these discounted retailers are not believing into any sort of marketing
department team which would be engaged in promotional activities of company. Rather Tata,
and McNamara, (2018) explained that more focus of company would be on satisfaction of
customers by giving them low priced and high quality of products. Investing in marketing
department or in collaboration with consultants would not be good idea for company as their
operations are the most important element for them. All these said changes would be
implemented if there is very good technology and use of it in proper way out. As they are related
to settlement of techniques and then their application into all type of organisations which is
taking up revolutionised form.
In the last decade it has been made in more dramatically change is taking place which is
over the traditional business models and transforming all kind of activities of organisation
(Taiminen and Karjaluoto 2015). Digitalisation is the most effective and important tool which is
used by all companies and business all around the world which is increasing their wealth of
choice and that of opportunity as well. Michelini, Principato and Iasevoli, (2018) indicated that
all sort of existing products could become more and more profitable if companies are including
innovative and new products in market which are attracting majority of people. Digital
technology is enabling diversity in products and their portfolio with on the same hand having
good and better quality of products. Impact of technology could be analysed in all sort of
functions and areas of company including like that of communication, distribution,
administration and especially into production.
In the communication it could be said that use of technology could be seen in highest and
most common way as it is helping firms to use and employ social media or more effective than
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this could be mobile technology. Both of them are allowing company to connect and
communicate with customers and other clients of business. Thus bring the effect of good
relationship that too in global level of business and also collaboration of products and services
with their customers. Bughin, Chui and Manyika, (2010) elaborated that other than this digital
technology is also used and implemented within the production function of business as by doing
this they would be able to ensure better use of inputs into manufacturing of products. If company
is using artificial intelligence into their production of goods and services and then the big data
As per the part of customer it is included that giving their customers convenience into
shopping is the best part of innovation into retailing business. Client accommodation has driven
most advancements in retailing, including grocery stores, retail establishments, strip focuses,
territorial shopping centres, and class superstores. The accentuation that clients put on
accommodation has incited retailers to broaden one-quit shopping, update store working
frameworks, stress the offer of administrations, and put resources into nonstory retailing
according to Li, (2018).
The interest for more advantageous shopping mirrors a few patterns, including expanding
quantities of ladies in the workforce and buyer view of constrained time. In 1998, 63.6% of
wedded ladies with youngsters under 6 years old worked all day or low maintenance contrasted
and 18.6% out of 1960—a 242% expansion. Ladies now involve 41% of America's all day
workforce and 68% of its low maintenance work-compel (33% of whom spend no less than 35
hours for every week at work, the likeness a full-time schedule). Since, working ladies
commonly hold family unit administration obligations, helpful other options to conventional
tasks like shopping have turned out to be to a lesser extent an extravagance and to a greater
extent a need.
As indicated by Bughin, Chui and Manyika, (2010) overview by Kurt Salmon Associates,
the dominant part of shoppers (56%) concurred that they have far less relaxation time than
before. Most trust they have lacking time to do all they should do in addition to all they need to
do. Since so much shopping falls into the "must-do" class, occupied customers trying to improve
their lives support retailers that spare them time and energy.
Numerous customers pick up time for different exercises by diminishing their shopping
time. Customers in Kurt Salmon Associates' review spent under 1% of their aggregate time
shopping; 52% expected to shop even less to build time for different employments. The
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counselling firm reasons that unless retailers adapt to present circumstances, buyers "will keep
on staying home and utilize their constrained time for something more pleasant and fulfilling
than shopping." A Management Horizons write about retailing in the new thousand year’s states,
"Occupied customers will search for approaches to streamline, solidify, and improve their
shopping encounters (Foroudi Nazarian and Duda 2017). They will react positively to retail
offers that make it simpler, quicker, less expensive, and more enjoyable to shop. According to
Bharadwaj, El Sawy and Venkatraman, (2013) the need to rethink offer and include an incentive
from the client point of view will be a main thrust for all players."
Numerous retailers are endeavouring to wind up more helpful. Consider the eatery and
sustenance benefit divisions. Eateries now catch very nearly half of America's nourishment
dollar. A run of the mill American purchases eatery suppers 2.6 times each week, or 133 times
amid the year. In the vicinity of 1985 and 1998, the quantity of bring home dinners per capita
climbed 59%. Fast-food eateries utilize an assortment of techniques, including preselected
supper blends and self-serve drink remains, to get dinners to clients all the more rapidly. Indeed,
even Le Bernardin, a four-star eatery in Manhattan, offers the "convenient lunch"— 30 minutes
from request to table. Purchasers' want for fast and simple dinners has urged stores to stock a
bigger supply of arranged nourishments and compact sustenance, (for example, vitality bars) that
movement well in a folder case, satchel, rucksack, or pocket as per Li, (2018).
METHODOLOGY
Research Philosophy
These are the include belief and thinking of scholar or researcher into thero research
project which they are implementing into on overall project. this research philisophy would be
affecting way in which researcher is collecting and analysing data which would be used into
project. in common terms this is of 4 types namely realism, interpretivism, positivism and
pragmatism. Which one is top be used is all depended upon data that are available so in this
present research scholar would be using interpretivism which is inclduing all kind of human
interpretation and their influence on data.
Research Approach
There are different ways through which informaiton that are gathered can be presented.
With this respect, there are two approaches which are inducutive and deductive. More
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specifically, inductive approach is a type in which specific details are carried out and then
general aspects are focused on. On the other hand, deductive approach is the one which provides
details in general and then specific aspects are focused on. Among these, the researcher has made
use of inductive apprioach which enables to provide the details to be presented from specific to
general. This way, it becomes helpful enough to make the research to attain their set of goals and
objectives in appropriate manner. Thus the researcher can analysis the aspect and make the
researcher to interpret the research.
Research Design
This is considered to be the blue print with the help of which step by step consideration
are made for presenting the research in effective manner. these are of three types which are
exploratory, descriptive, explanatory. Among these the researcher has considered descriptive
research design. In this type of method there are three of the methods involved which are
observation, case study and observation. This is a study that mainly focuses on the objectives
that are set by the researcher. This way, the impact of technology will be considered and thus it
can make the researcher to focus on the digital technology. In addition to this, the rate of support
that individuals will get for focusing on the aim and objectives enable to complete the research
work effectively and efficiently.
Research Strategy
In order to conduct the research in effective manner, there are two way with the help of
which the findings of the research can be conducted. These are of two types which are qualitaive
and qunatitiative. Qualititve is focused on gqathering theoritical aspects and enables to provide
information regarding the findings that are made by other researchers. On the other hand,
quantitative research is the one that enables to focus and make comparison by making use of
neumarical aspects. Both these strategies have their own set of benefits and disadvantages.
Among these the researcher has made use of quantiaitive strategy in which main focus is made in
considering the theoritical aspects in approapite manner. further, this also enables to make
comparison of the all the responses that are made.
Data Collection Methods
These are regarded to as the most crucial and vital part of whole research which is
helping and enabling researcher to collect and summerise data or information that is based on
what is called topic of project. all the data which they have collected must be valid and relevant
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in all sense as irrelevant data could not be part of research as they would not be making any
importance into our research project. there are two methods of data collection including that of
primary and secondary one. Both of these methods are very important and vital as in primary
data researcher need to collect information with the use of interview, questionnaire and other
forms as well. On the other hand in secondary one they would be taking or extracting out
information from various ways like that of books, articles already done research or questionnaire
and various jourals written by authors.
Data Collection Tools
As as included above in current research topic which is based on impact of digital
technology on success of business and that of discounted retail like that of ALDI and LIDL. So
reseacher would be including questionnaire in which are store customers and also from
employees.
Sample
There are two of the methods that are included in sampling which are probabilistic and
non probabilisitc sampling. Among these probailistic is the one in which all the individuals in a
group has equal chances of being selected. On the other hand, non probabilistic sampling is the
one which consist of selecting individuals as per the preference of researcher. Among these the
researcher has made use of non probabilisitc which would be not requiring any kind of tool and
this would be done on the basis of choosing odd numbers from then total population and then
including them into the sampling.
Analysis
This also an important part which is divided into two parts qualitative and quantitative
methods and they both would be taking out what is the interpretation of data which is collected.
Under this research project there would be use of qualitative methods which is that of making
themes and then analysing them all into simpler part to take out interpretation.
Limitation
This research which is based on impact of digital; technology on business activities like
that of operations, finance, marketing and HR on organisation like that of ALDI and LIDI there
are some limitations which are been included. First one is there are no proper sources of any
literature or article on this particular topic so this is a gap in literature. Then there was also not
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proper use of tools and techniques within this research that are making hindrance into working
and concluding part of research.
TIMELINE OF RESEARCH ACTIVITIES
Activities/(Duration in
weeks) 1-2 3 4 5 6
7-
10 11 12 13 14 15
Further research to select the
research topic
Brief research, rationale and
aims and objectives
Conducting literature review
on chosen topic
Deciding research
methodology
(Research approach, design,
method and others)
Data collection
Data analysis and finding
Submission to the tutor
Modifications as per the
requirement
Final submission to the tutor
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