ALDI AUSTRALIA

Analysis Report on ALDI Supermarket Chain



Summary

ALDI is a Germany-based international retail store chain. It is one of the most successful and financially strong retailers globally. Aldi, short for "ALbrecht DIscount", is basically a supermarket chain which offer different products at discount. It was founded in 1913. ALDI is renowned for its value-creation and extra-ordinary value world-wide.

It has more than 1,700 outlets in southern and western Germany alone. It is also operating in the international market, which includes countries like Australia, United Kingdom, United States, France, Germany and Scandinavian Countries. It is operating under the name of Hofer in Austria and Slovenia.

Although, ALDI went expanded to the international market some fifty years ago, it made its way through to Australian market in the start of this century, 2001. It entered into Australian market with bold ambitions. Seeing the latent demand, ALDI entered the market with the low-key presence at Sydney. It in-effect laid the foundation for the expansion, that it had years later.

It has now successfully opened more than 200 stores all over Australia. The success of ALDI is an indication that Australian public, especially shoppers, has accepted the existence of the organization wholeheartedly as it had catered the needs and demands of its consumers worldwide. ALDI is renowned for providing for its philosophy as it aims to provide greater value to all of its consumers.

Analysis Report on ALDI Supermarket Chain

Introduction

ALDI, short for ALbrecht Discounts (ALDI), a grocery store was launched by two brothers, Karl and Theo Albrecht, in 1948 at Essen in Germany. The store had a limited product line and a simple design layout. The company grew at a rapid pace, and by the end of 1961, it had opened about 300 outlets throughout Germany.

The company was divided into two segments, North and South, in 1961. It was mainly done with the aim of business expansion. It expanded its business to major European countries and United States.

In 2001, it opened its first outlet in Australia. Since then, it has expanded its operations significantly in Australia. It has now over 200 stores in different localities across Australia. With its exclusive business strategy, of discounted quality products, it has managed to create an impact in Australian retail market. A large number of Australians are being employed by ALDI at the moment, and it is aiming for rapid, but long-lasting, future growth.

Discussion

In the late 1990's, ALDI decided to enter into Australian market. After the thorough study and research, ALDI came on-board in 2001. It had to come-up with a unique strategy to capture, and stay in, the market. Aldi used its main business philosophy and guidelines to build its strategy. The philosophy ensured that the store provides discounted prices for the quality products it had. The main five principles of philosophy are superior quality, discounted prices, exceptional value, outstanding 'special buys', and confident buying (ALDI, 2011).

The initial investment was $750 million, with future plans to invest its ...