The paper 'Strategic Management and Strategic Competitiveness' is a great example of a Management Case Study. ALDI is a large chain supermarket with its origins in Germany. The supermarket chain first opened its operations in Australia in the year 2001 and is known for offering low priced products to the market. It currently has more than 270 stores in Australia with a network of more than 7000 stores globally. Its success is attributed to providing value and quality to its customers through its fair and efficient approach to all it does.
It is able to offer cheaper products for its customers owing to its use of its own brands and simple store display. However, its competitive advantage is threatened by the rapidly changing external environment. ALDI, therefore, needs to counter this challenge if it is to remain relevant in the Australian market. This paper looks at environmental factors affecting ALDI’ s performance as well as the business strategy it has employed in its bid to remain competitive. The paper concludes by suggesting a change in strategy if ALDI is to remain relevant in the market. Strategic management and strategic competitiveness Strategic management is about formulating and implementing the organization’ s major goals and initiatives as decided by the management on the basis of resources as well as an analysis of the company’ s internal and external environments.
As such, it provides the organization’ s overall direction through the specification of organizational objectives as well as the policies to be used in achieving the objectives and the eventual allocation of resources for implementing the plans. Strategic competitiveness on the other hand strategic competitiveness could be defined as the outcome achieved when an organization successfully formulates and implements a value-creating strategy that cannot be duplicated or is too costly to duplicate in the short-run (Kiechel, 2010).
It enables the organization to achieve its goals despite increased competition and hence gives the organization its competitive advantage. Influence of the characteristics of the competitive landscape on the strategic competitiveness of organizations ALDI operates in the supermarkets and Grocery stores industry. The competitive landscape of the industry is characterized by companies trying to compete along such lines as private labels such as the one ALDI competes on, a technology where Woolworths has been noted to be ahead of others as well as selling at reduced prices as ALDI does.
It should also be noted that the industry has been experiencing rapidly changing consumer tastes and preferences and hence the ability to respond to this greatly determines the success of a firm in the industry. The industry’ s competitive landscape has greatly affected the strategic competitiveness of organizations. For instance, the entry and rapid growth of ALDI have been mainly attributed to the fact that it almost exclusively sells private-label products at discounted prices (Webb, 2008).
However, with most supermarkets working towards the introduction of private labels and cheap products in the market, ALDI has to come up with new strategies if it is to remain as competitive as it is today in the Australian market. Influence of external environmental factors on ALDI’ s performance The firm’ s external environment can have a great influence on how the company performs and on its strategic management as well as its strategic competitiveness. In this regard, Porter’ s five forces analysis of ALDI has been carried out in a bid to better understand the influence of the external environment on ALDI’ s performance;
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