The paper “ Strategic Management and Marketing of Aldi Supermarkets in Australia" is an outstanding example of a case study on marketing. Aldi Supermarket in Australia is one of the branches of the large German Aldi Stores that has successfully fought for a market share in Australia despite the massive competition that is offered by pre-existing companies such as Walmart, Woolworth, and Cole-Myer; the latter three have secured more than ¾ of the overall market (AC Nielsen Grocery Report 2004). It is basically a grocery investment whose strategy is to offer the market with high-quality products that sell at cheaper prices.
In fact, the company has been renowned for the cheapest grocery products in Australia as well as back in Germany. As an extension from Germany where over 75% of consumers shop at Aldi stores for grocery products (Coriolis Research 2000), the first store in Australia was established in 2001 with high hope to develop amidst the tough Australian market. The company has since grown continuously despite stiff competition and by 2010; it had owned more than 2.5% of the market share (AC Nielsen Grocery Report 2004).
The company’ s sole tool is the control of the price of the commodities it offers that many times remain the lowest in comparison with other similar firms. However, the need to ensure that substantial profit is realized after-sales highly regulates the limits within which minimum and maximum prices are decided upon. This report gives an analysis of the company’ s capacity to survive major threats that pose from time to time. The aspects looked to include Australian consumer behavior, threats, and opportunities as they affect the future of the company.
The internal and external analyses depict an environment within which, by comparison with the strategic management index that the company exhibits, the Aldi stores certainly have the chance to grow even further and colonize more market portion. Given that the Aldi Stores operates among a variety of similar firms, there will always be a call to establish a unique characteristic that will guarantee a higher competitive advantage, largely because the competition is always present. Using the TOWS matrix analysis to characterize the internal environment, sustainability index of Aldi investments has been summarized whereas the Value Chain Analysis expresses the strategies the company employs to control the cost-profit balance and for the categorization and accounts of the activities that fall within the framework for the development and thus expansion of the company into potential new areas in Australia.
This study further intends to use Aldi ventures as a platform to display the challenges-versus-success element in marketing strategies to assist and/or guide entrepreneurial ambitions. Mission EvaluationTaking into consideration that there existed similar firms before Aldi Supermarket ventures were extended to Australia, the Aldi merchants obviously had established a strategy for fighting for a market share (Coriolis Research 2000).
From their major proposal laid out in 2000, the Aldi Company describes their only niche for survival as to juggle with the prices of their commodities (Coriolis Research 2000). However, as in any other major investment, the mission included providing the highest quality products to the Australian markets. Having set their first foot in Sydney in 2001, the company spread fast to other major cities of Australia were the major tool was lower prices (AC Nielsen Grocery Report 2004).
The major challenges up to now have been those related to the sources of raw materials and securing the interest of the consumers. In Australia, Aldi investments are considered foreign but the strong base back in Germany has provided virtually enough technical support for the success of the company. The company has been successful in providing high-quality grocery products in over six major Australian cities at cheaper prices. However, the chance for further expanding the business still prevails (AC Nielsen Grocery Report 2004).