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Aldi is a leading retailer with over 8,000 stores worldwide. They operate a typical store sells around 700 products, compared to approximately 25,000 items stock at traditional supermarket. Since opening its first store in 1913, Aldi has successfully established itself as one of the most trustworthy retailers in the international business market. In industry business, company were achieved their competitive advantage in operating management based on competing a difference, competing cost and competing a response. ALDI have a different way of their services in retail shop industry. Physically, grocery shop is quite common but they achieve a competitive advantage through a services attributes in retail industry.
ALDI‘s strategy lead to competitive advantage thorugh their brand that associated with value for money. Operating manager in ALDI operates an effective plan in order to emphasizing their product and services that will influence potential value to the customer. Its emphasis is on providing high quality products and excellent value for customers. As simply, ALDI have provided the customer an efficient way to shop.
As we know, customers want the best quality products at the lowest possible prices. With such tough competition it is vital for organizations to understand what their customers want. As a reputable retailer, ALDI understands that its customers want value for money but do not want to compromise on quality. ALDI’s strategy revolves around providing good quality groceries for low price. For ALDI quality is important that guarantees product sold with a no questions asked money back guarantee. Based on case, ALDI achieves its low cost strategy but still maintain to produce quality products.
They applied a several methods such as buys large quantities of item from trusted suppliers, taking advantage of quantity discounts and economies of scale. ALDI did not waste their cost towards shelving, locations and warehouse because they utilized an effectively resources. Otherwise, ALDI have a quick response in term of delivery product because of Just in Time (JIT). The staffs in ALDI operate the checkout as well as restock items by replacing pallets and this is quite flexible. They arrange a excellent scheduling of their performance such as minimize overhead cost.
QUESTION 2 ALDI is a retailer that offers a low cost strategy as one of its strength in retail industry in Germany. Even though pertain a low cost strategy, there is no such things that ALDI offer a low standard of products. They could maintain to providing a good service quality because they succeed in customized the utilities of its resources capacity. ALDI using a time based management that required them to meet changing market and customer needs. Regardless of competitive strategy, quality is important to create a value to pay. It means, customers did not had regret buying our products and keep to buy it that similar principle used by ALDI that guarantees product sold with a no questions asked money back guarantee. Other than, a good service is one of a part of quality. It is because, services such as meet customer want on time, readily available and convenience stores could satisfy a customer on their routine daily grocery shop.