Aldi: The European Hard Discounter's Strategy in Australia
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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: |
Price: |
| Case Code |
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BSTR296 |
For delivery in electronic format: Rs.
300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extraThemes
International Business | Globalization Business |
| Case Length |
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15 Pages |
| Period |
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2001-2008 |
| Pub Date |
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2008 |
| Teaching Note |
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Not Available |
| Organization |
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Aldi |
| Industry |
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Retail |
| Countries
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Australia |
Abstract:
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The case focuses on Germany-based hard discounter Aldi's
unique business practices and its operations in Australia. Aldi, one of the
oldest retailers in Germany, was considered to be one of the pioneers of the
hard discounter concept. It entered Australia in 2001. Aldi followed the
strategy it adopted for its German operations in Australia with minimal
modifications. The case discusses the operational strategy of Aldi in Australia
and how it was successful in attracting price sensitive Australian consumers
despite strong local competition. The case highlights Aldi's expansion plans in
Australia and concludes by identifying the challenges the company faced from the
local retailers and the competition it can expect from other European and
American retailers which have announced their plans to enter the market.
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Issues:
» Understand Aldi's business practices and how hard discounters operate.
» Study the Australian retail market.
» Analyze Aldi's entry and expansion strategy in Australia.
» Analyze the retail management strategies adopted by Aldi in Australia.
Contents:
Keywords:
Aldi, Hard Discounter, Global expansion, Retailing,
Competitive strategy, Low cost business model, Limited Assortment, Australia
Competition and Consumer Association (ACCC), Australian Retail industry, Coles,
Woolworths, Aldi Süd, Aldi Nord, Private label products, Surprise Buys, Lidl,
Netto, Costco Wholesale Corporation, German retailer, Unit Pricing, 'No-frills'
style
Aldi: The European Hard Discounter's Strategy in Australia
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