Aldi's Strategic Management: SWOT Analysis and Business Environment

This report provides a strategic analysis of the German supermarket chain Aldi, focusing on its business environment and competitive position. The core of the report is a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis, a strategic tool used to evaluate internal and external factors impacting the company. The report identifies Aldi's strengths, such as its cost efficiency and distribution network, and weaknesses, including its limited product range compared to competitors like Walmart. It also explores opportunities for expansion and potential threats from competitors and suppliers. The analysis concludes that strategic implementation is crucial for Aldi's success, emphasizing the value of the SWOT framework in understanding the business landscape and formulating effective strategies. The report references Aldi's history and mission, providing context for the analysis.

Introduction
Strategic management is the process of ongoing planning, monitoring, analysis and
assessing all the essential activities. It is required for the companies to examine the environment
before developing plans and strategies to attain success. There are many strategic tools that the
company can use to examine activities such as SWOT Analysis, Porter Five Forces Framework,
PESTLE Analysis and many other tools (Rothaermel, 2016). The main aim of this paper is to
understand the concept of strategic management. Aldi has been taken into consideration to
examine the business environment. Aldi is a supermarket chain of Germany that offers various
services to consumers in 20 countries (Aldi, 2019a).
SWOT Analysis
SWOT Analysis is the strategic tool that can be used by the company to examine the
internal and external factors of the organization. This tool helps to examine the four factors such
as strengths, weaknesses, opportunities, and threats. It assists to gain a competitive advantage in
the market by developing the strategies after evaluating the business environment (Gürel, & Tat,
2017). This tool is implemented on Aldi and discussed below:
Strength:
 It is observed that Aldi has an efficient cost that helps it to grab the market share and gain
a competitive advantage.
 Aldi picks the exclusive brands products that help to enhance the volume of sales and
brand image due to delivering high-quality services (Aldi, 2019a).

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 The company operates the business in 20 countries which states its distribution strategy
which is highly beneficial for it (Aldi, 2019a).
Weaknesses
It is observed that Aldi is small as compared to the other supermarkets such as Walmart.
It has been found that the company does not provide a complete shopping experience due to
which the sales volume has been decreased. The goods are limited due to which the consumers
get the services from the different supermarkets. The demand of customers has been decreasing
due to limited goods of services offers by the company (Aldi, 2019b).
Opportunities
 Aldi has the opportunity to expand the business at the international level. It can also
expand the business in goods and services.
 It also has the opportunity to grasp the competitive advantage in the market by beating
the competitors.
Threat
 It has been evaluated that the company has a high threat of competitors as there are many
companies operates the business in a similar industry such as Walmart, Wesfarmers,
Woolworths, and the others.
 The suppliers of the company are also a threat factor for the company. Suppliers of the
company are the major factor as they help to operate the business at the international
level. Suppliers have the opportunity to switch with another company as many
competitors in the market offers similar services to consumers due to which the

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opportunity for suppliers has been increased. Switching the suppliers from one company
to another that increases the threat for the company.
Conclusion
It is concluded that the company can implement the strategies to attain success after
evaluating the internal and external environment. SWOT Analysis tool is a strategic tool that
helps to examine the environment.

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References
Aldi. (2019a). Aldi History. Retrieved From: https://corporate.aldi.us/en/aldi-history/
Aldi. (2019b). About Aldi. https://www.aldi.us/en/about-aldi/our-mission/
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). McGraw-Hill Education.