Aldi: A Low-Cost Retail Giant's Distinctive Business Practices
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To download Aldi: A Low-Cost Retail Giant's Distinctive Business Practices case study
(Case Code: BSTR252) click on the button below, and select the case from the list of available cases:
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details:
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Price: |
| Case Code |
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BSTR252 |
For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges
ThemesBusiness Strategy |
| Case Length |
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16 Pages |
| Period |
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1945-2006 |
| Pub Date |
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2007 |
| Teaching Note |
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Not Available |
| Organization |
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Albrecht
Discount Company, Aldi |
| Industry |
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Retail |
| Countries
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Germany |
Abstract:
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Aldi was one of the pioneers of the hard discount style of retailing in Germany.
The Aldi Group (which comprised of two companies - Aldi Nord and Aldi Sud), was
known for its low prices and no-frills business model. The case describes the
various elements of Aldi's business model, and how they allowed the company to
adhere to its low price philosophy. It also talks about Aldi's international
expansion, and discusses some of the changes Aldi had to adopt in its overseas
markets. The case concludes with a discussion of Aldi's future prospects in
light of the saturating German market and intensifying competition from Lidl, as
well as the possible effect of the trend in the international retail sector of
investing heavily in improving in-store experience on Aldi's no-frills
philosophy.
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Issues:
» To study the low cost business practices of a well known discount retailer in
Germany
» To analyze how the various elements of the business model allowed the company
to adhere to its low price philosophy
» To study the international expansion strategies of the company and to discuss
whether or not the company was right in adhering to its low cost model in
overseas markets
» To analyze the future prospects of the company in light of issues like
saturation in the home market, intensifying competition, and emerging trends in
the international retail environment
Contents:
Keywords:
Aldi, Albrecht , Hard discounter, Low cost business model,
Limited assortment , Private label products , Weekly Special Buys, Cross
docking, Cost control , Lidl, Wal-Mart , German retail industry , Market
saturation
The Land of the Hard Discounter
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