ALDI Australia, Opportunities and Future Challenges
Over the years, most firms have committed substantial portions of their resources to uncover why some organizations fail while others flourish despite operating under similar business environmental elements. The driving factor explaining such motive involves the need to continually review the firm's operations as organizations of all nature and sizes are endlessly facing changing situations. However, coping effectively with the uncertainties in both micro and macro environment and attaining desired performance levels remains a real challenge for most enterprises. This calls for strategic management in the organization. Strategic management involves the deliberate structures in organizational units to systematically examine all vital variables in the determination of what is appropriate for them to do and how to undertake such corporate policies (Ireland, Hoskisson, & Hitt, 2010, p. 7).
This yields alignment of business policies and creating priorities to enhance firm's performance. In pursuit, strategic competitiveness is accomplished when an organization successfully formulates and adopts a value-creating approach deriving sustained competitive benefits which current and prospective competitors cannot duplicate and simultaneously implement. Organizations of ALDI nature, must therefore pay attention to external strategies and relate them to organizational capabilities in the determination of long-range direction in relation to the existing and potential challenges and opportunities.
[...] Lowe, M., & Neely, A. (2005, November 14). ALDI Case Study. Retrieved April from http://www.pages.drexel.edu/~arn23/projects.html Speedy, B. ( 2013, March 30). Aldi Eyes $2bn Expansion as Chain Outperforms Rivals . Retrieved April from http://www.theaustralian.com.au/business/aldi-eyes2bn-expansion-as-chain-outperforms-rivals/story-e6frg8zx-1226609203004 Tucker, J. (2010, April 21). ALDI Effect, the new ALDI stores. Retrieved April from http://www.examiner.com/article/aldi-effect-the-new-aldi-stores . [...]
[...] Just - Food Global News. Clifford, S. (2011, March 29). Where Wal-Mart Failed, Aldi Succeeds. Retrieved April from http://www.nytimes.com/2011/03/30/business/30aldi.html?pagewanted=all&_r=1& David. (2011, January 25). ALDI - How Do they Do it? Retrieved April from http://www.dragoncollege.edu.au/blog/2011/aldi-how-do-they-do-it/ Delforce, R., Dickson, A., & Hogan, J. (2005). Australian's Food Industry Recent Changes and Challenges. Australian Commodities, 379-390. Hitt, M. [...]
[...] A., & Ireland, R. D. (2008). Competing for Advantage ed.). Cengage Learning. Ireland, R. D., Hoskisson, R. E., & Hitt, M. A. (2010). Strategic Management: Competitiveness and Globalisation. Cengage Learning Australia. [...]
[...] Firstly, ALDI has committed to a low cost strategy by emphasizing on resource efficiency. This is observed in operating at small-sized spaces relative to other competitors while employing the minimum labour force to maintain lower labour costs. Secondly, ALDI acquired advantage rests more on its differentiation strategy by purchasing in bulk from the suppliers at prices negotiated to the bone. These products are then traded in the stores as ALDI own-products at the lowest prices. Similarly, the stores stock high demanded products and less of the poorly demanded product. [...]
[...] Firstly, the outlet has faced little resistance often identified with mismatch of new entrant strategies and the target demands. The outlet uses a simple format while establishing new stores by obtaining space from existing landowners, usually small individuals who have plugged into the society rather than prioritizing on renowned land owners (Clifford, 2011). It is a format that sustains their expansion strategies as opposed to new entrants who seek well-known landowners with little contact with the consumer markets emerging from the immediate society. [...]
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