The paper tells that Aldi Group expanded rapidly in other countries as well in order to set up its business and attract a huge customer base for its products. It has been studied that Aldi’ s growth has accelerated due to the unique business model that the company follows that is to serve the customers with quality goods at low prices. The company was named as the low price grocery store. It is noted that more than 25 million customers each month take advantage of the company’ s simple approach to grocery retailing.
Further, the company is known for its track record that it has set by being an employer of choice by offering its employees with a lot of compensation as well as the benefits. The company has reached a level of the customer satisfaction that the customers recommend the company to the friends and their family members. Aldi undertakes a strategic drift in order to compete with the rivals. The business model followed by the company undertakes a particular cost leadership strategy which is used to reduce the cost of running a grocery store.
The strategy involves purchasing of the low price land in the outskirts of the city and built cheap warehouses in order to store the products manufactured by the company. The company employs few members in order to cut the cost incurred by the company to train the employees. Another strategy that the company adopts is that of the differentiation strategy. The company undergoes product differentiation that is it manufactures the wide range of products for its customers and they would not face any difficulty in their choice of the products.
The market mainly follows the policy of a monopolistically competitive economy where the firms undergo product differentiation and there are possibilities of the entry of the new firms within the market so that they can compete with the other firms. However, the managers of Aldi are involved in the decision-making process of the company regarding the strategies that are to be implemented.
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