Aldi: The European Hard Discounter's Strategy in Australia

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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:


Case Code : BSTR296 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra


International Business | Globalization Business
Case Length : 15 Pages
Period : 2001-2008
Pub Date : 2008
Teaching Note : Not Available
Organization : Aldi
Industry : Retail
Countries : Australia


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.

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies


» 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.


  Page No.
Introduction 1
Background Note 2
Aldi Entry & Expansion in Australia 4
Stores and Merchandise Management 6
Results 8
Looking Ahead 9
Exhibits 11


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

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