The paper "ALDI Wishes to Grow Further into the Australian Market " is an outstanding example of a marketing case study. ALDI entered the Australian market in 2001 in Sydney injecting hundreds of millions in the capital as an expansion strategy and to minimize the risks. The ALDI group has tried to establish a successful and competitive operational plan in the Australian market seeking to increase its market share and gaining a competitive advantage over local market rivals. However, ALDI has experienced challenges in the bridge towards the expansion of the Australian market share including the expensive Australian Currency, government subsidies and aid, use of virtual supermarkets by rivals and increased competition.
The essay will form a discussion of the strategies that ALDI could employ in maintaining its growth, strategic competitiveness despite the challenges in order to grow and acquire a larger share of the Australian retail market. Strategic Management and Strategic Competitiveness Strategic management gives the provision of the overall direction to an organization involving the specification of the objectives, development of policies, plans for achieving the said objectives and the allocation of necessary resources for the implementation of the plans.
In maintaining its strategic competitiveness and growth into the Australian market, ALDI should continue to employ a number of key factors as it has continuously done through its low-cost or the principle of cost-reduction as its strategic management policy in order to achieve further expansion in the Australian market (Hopkins, Mallette & Hopkins, 2013). ALDI uses approximately 750 square meters in operation space lower than its fellow competitors such as Wal-Mart (Bonn, 2006). In essence, the reduction in the operation space cuts down on costs including rent, electricity and water consumption.
The store employs the strategy of a limited number of high-quality yet cheaper products on its shelves currently amounting to about only seven hundred. The ALDI stores also use the employee strategy in keeping their costs down. Most of the ALDI stores employ not more than five employees in their stores as compared to around fifteen employees that their competitor Wal-Mart uses. ALDI uses the strategy of quality assurance despite practising the culture of hard discounts on its products (Bonn, 2006). In order to expand and gain a larger market share, it is necessary that ALDI incorporates other strategies in its business strategic management.
The store should incorporate the use of an Information system to create virtual supermarkets and counter the competition from rivals. Secondly, they should employ customer-orientation focus on taking a slow step towards venturing into new sections of the market. The use of decentralized management would also necessitate the fast and flexibility in decision making thus increasing its competitive advantage towards getting a huge market share (Hopkins et al. , 2013). A firm achieves strategic competitiveness when it successfully formulates and conducts implementation of value-creation strategies.
Strategic competitiveness seeks to enhance the growth of a business and increase the market share by having cutting-edge business operations that are not easily imitable by the competitors (Pacheco-Ornelas, Cuevas-Rodrí guez & Rodrí guez-Pacheco, 2012). ALDI has initiated a competitive advantage landscape which has enhanced its successive growth and competitiveness. Through the implementation of its strategic competitiveness in a seemingly challenging competitive landscape, the store has employed the aspect of the Hard-discount strategy. Through this strategy, ALDI has ensured that all its products available on the store’ s shelves are much cheaper as compared to the other stores such as Wal-Mart and other local supermarkets in Australia (Bonn, 2006).
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