The paper "Business Model of ALDI" is a great example of a case study on business. Organizations tend to develop strategies based on the different internal and external factors and the manner the factors influence decision making. This makes it imperative that a better understanding of the environment is created so that it helps in the generation of positive results. This report thereby analyzes both the internal and external environment analysis for ALDI, which is an Australian retail chain player. This has been followed by the SWOT analysis and the strategic competitiveness which will help to identify one area of marketing and develop strategies to improve the process of carrying out business.
The overall process thereby aims at understanding the external environment and developing marketing strategies so that the business resources are used in the most productive manner. About the Organization ALDI is one of the leading retail players in Australia which started its operations in 2001 and since then has grown its business and has over 300 stores locally and over 8000 stores worldwide. ALDI has developed its business strategy by focusing on satisfying the needs of the customers by providing products at the minimum possible price at the same time ensuring quality and maximum market penetration.
The strategy has helped ALDI to develop its business and has become one of the top 10 retail chain providers in Australia (ALDI. 2013). The competitive business strategy which ALDI focuses on is market penetration which has provided higher returns for the business and working on the same business model will further help to consolidate its position in the Australian market. Working on the aspect which looks at improving technology will thereby help to improve the overall performance and provide better results. Internal Analysis The internal environment analysis looks at analyzing the manner in which ALDI uses its resources so that based on its strengths the business can achieve maximum chances of growth (Laric & Lynagh, 2009).
The same has been demonstrated through a Value Chain Analysis The primary objectives which ALDI aims to achieve are as: Inbound Logistics: ALDI has used its resources in gaining efficiency as the organizations look at having two renowned brands for the same products in addition to the local brands.
The stores also use JIT to ensure that an inventory is held for a minimum period and has thereby been able to reduce the amount of investment made in inventories. Operations: ALDI uses both outsourcing and in house mechanism to supply products to its customers. Some of the products are made by ALDI under their own brand name but most of the finished products are outsourced by having agreements with different suppliers to ensure consistency in quality and to have a strong supply chain network (Chen, 2003).