Aldi in the UK: Cost Leadership through Operational Excellence
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Case Code: BSTR474 Case Length: 14 Pages Period: 2000 - 2014 Pub Date: 2015 Teaching Note: Available |
Price: Rs.400 Organization: ALDI Industry: Retail Countries: UK Themes: International Business, Globalization |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background Note
Based in Germany, Albrecht Discount, abbreviated as Aldi, evolved over the years from a small grocery store into a leading super market retail chain. It was founded by two brothers, Karl Albrecht (Karl) and Theo Albrecht (Theo). Their father, a miner, had to give up his job owing to ill health. In 1913, their mother started a food store in their family home in Schonnebeck area, Essen, Germany, in order to meet the family's needs. The brothers were a part of the Wehrmacht (unified armed forces of Germany) and took part in World War II, during which they were taken prisoner of war. After they returned from the prisoner-of-war camps they found that their mother's store was among the few remaining structures that had survived the bombings in Essen city, which was razed during the war. The brothers took over the store.
There was a swift growth in their business after that and the two started opening stores across the city selling milk, bread, butter, and other necessary items. The brothers kept the operation of the stores very simple with an uncomplicated layout, limited range of goods in stock, and no extra services. The prices they charged were thus also lower. Albrecht Discount Company was incorporated in the year 1948 and had about 13 stores operating in the Ruhr area. The store's figures kept escalating to reach 50 stores in 1954.....
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