Essays on LDI Wishes to Grow in Australian Market and Gain A Larger Share of Market Case Study

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The paper "LDI Wishes to Grow in Australian Market and Gain A Larger Share of Market" is a delightful example of a case study on business.   Growth in businesses depends on the strategies that they apply, the nature of the external and internal environment, the portfolio prices, and the products offered. The factors identified could either act as catalysts to better performance or act as deterring factors of growth (Hitt et. al, 2001). Currently, the company’ s market in Germany is outstanding because the strategies used and the products offered are vastly accepted by the market.

It offers grocery products, as well as, basic household goods. Most importantly, its market strategy has earned an ALDI company ample market share of approximately 40% in Germany. One of the reasons behind the cumulative success of the company in Germany, unlike in Australia, is mainly based on the cost leadership strategy applied. The fact that respondents declare the products emerged from the company offer prices that are almost 20% less than those of the competitor's guarantees a right for market dominance is predominant. Market leadership is affiliated with numerous competitive features as well as propelling factors (Hittite. al, 2012).

ALDI Company is extensively interested in capturing a better market section than the already earned 10% of the Australian grocery and household goods. This essay aims at depicting relevant strategy recommendations that ALDI Company should embrace to earn a better market share in Australia. Strategic Management and Strategic Competitiveness Being a highly competitive firm, dwelling in a very competitive industry, ALDI is subjected to competition from companies that have analyzed the market demand clearly. Strategic management is required for a business to thrive (Dess, 2006).

Accordingly, strategic competitiveness emerges after successful strategic management is practiced. First, strategic management is one of the most ‘ hard skills’ in business operations. Most companies or professionally established business entities formulate and implement specific goals, as well as, the company initiative (Anderson et. al, 2002). This process considers the availability of resources with reference to the nature of the external and internal economic environment of the business. Business is undergoing a process of strategic management analyses of the business environment and refers to formal procedures that enable the entity to operate competitively.

Initially, for a firm to gain a competitive nature, it has to ensure that it carries out its analysis in a sure manner to ensure that it does not lose the substantial market. Quite often, scholars insist that there are two steps incorporated in the process of strategic management. They are formulation and implementation. Successful project management and management competition have yielded stiff competition in the Australian supermarket industry. The Australian supermarkets, who consider ALDI Company to be a threat in the market, have come up with competitive parameters that deter the rate that any business intends to take up the market.

Most of the companies and supermarkets offering similar goods do so in the sense that they already privatized the labels. In addition, the analysis carried out by competitor firms confirms that the company uses an intensive discounting strategy. Therefore, most of the supermarkets have adopted the strategy. The company, therefore, may find it hard to compete with the supermarkets efficiently. The strategies tend to skew the market towards domestic supermarkets and away from ALDI.

Unlike in Germany, the level of sales is discoursing, owing to the fact that the company has intensively invested in the business, in a capital intensive manner. This calls for the organizations or companies in such an industry to devise new competitive strategies for them to survive within the industry in the long run (Jones, 2010).


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