The paper "SWOT Analysis of the Aldi Company " is a great example of a management case study. Management of businesses in a highly competitive environment can sometimes be challenging, especially if that business does not develop a clear blueprint for its operations. Even with the clearest blueprint, a business is likely to plunge into management problems, thus management needs to remain vigilant always in order to enhance their competitive edge in the market(Sekhar 2009). This essay seeks to critically analyse the strategy of Aldi company particularly in relation to its plans to open new stores in various regions. Strategy at Aldi A strategy can be considered as a short-term plan that aims at increasing the market share of a business, thus making it a market leader in the industry (Waddell et al 2007).
As a giant retail store company, Aldi’ s strategy plan involves opening new stores in regions that would boost its business and enhance its profitability. Besides this, the stores would provide several job opportunities to individuals in particular areas. Evidently, the company’ s initial plan of opening new stores did not take off as expected due to difficulties experienced in the course of the planning process (Browne 2012).
According to Browne’ s article, it is evident that Aldi has adequate resources that it can utilize for expansion and the implementation of its objectives and mission. Therefore, the main challenge that the company faces in its expansion is strategic planning. Waddel et al (2007) observe that planning entails identifying goals that are to be achieved and specifying how to attain the goals. Planning should be embedded in the company’ s objectives, mission statement and vision.
Basically, Aldi’ s mission and vision emphasise on providing excellent value to customers by providing high-quality products and services (Aldi 2012). In order for the company to uphold its mission and vision which emphasises on providing excellent value to customers, there are several factors that the company should put into the account in the course of its planning process. For instance, effective consultation with relevant stakeholders is crucial. In Aldi’ s expansion plan, there is no mention of the company’ s stakeholders in its decision to expand the stores. Hitt, Ireland and Hoskisson (2012) observe that companies need to start with stakeholders if they have to implement their strategies.
The stakeholders must be included in the scorecard during the evaluation of company performance, something that Aldi Company may have overlooked in the hurry to open up new stores. Consequently, the performance of Aldi has been adversely affected, as the company cannot open up new stores as expected by customers. For instance, Buchan (2012) notes that Aldi’ s expansion plan in north-east town failed mainly because Aldi failed to take into account the concerns of local politicians and community councilors.
A look at the company activities reveals that the company did not get its strategic plan right since it is unable to continue with plans of opening new stores in the region, despite the fact that the company owns a prime land downtown (Buchan 2012). Despite the difficulties that the company has faced in the course of its expansion process, critical look at Browne’ s ( 2012) and Buchan’ s (2012) article shows that the company has a viable expansion plan. As part of its expansion, Aldi plans to concentrate on a single business as a supermarket giant through the selling of its products in new stores.
This is important mainly because Aldi has a strong brand equity and presence in the market. For example, the company’ s plan to expand in the international market by building a large distribution center from where it intends to spread out its wings as a leader in retail stores is viable. The company also plans to diversify its operations by franchising some of its premises to retailers as revealed in its advertisement for business space in its new retail park.
Similarly, international expansions are on the top of the company agenda even though it struggles with behind-the-scene negotiations. With these initial plans, it is evident that Aldi is looking forward to better days in future in its business (Browne 2012; Buchan 2012).