Tuesday, October 15, 2019

Strategic Management Essay Example | Topics and Well Written Essays - 1000 words - 9

Strategic Management - Essay Example stores is able to pass on the benefits of low costs in terms of onto the customer, and this policy has earned them rich benefits, especially during post war periods and recessionary times. Fundamentally this is a food and grocery store, having its own branded goods. Most of their products are their own labeled brands, and perhaps, there would only be one or two other kinds of competing brands for each kind of product. While this restricts the choice of customers regarding variety, it induces greater sale and movement of goods. Thus, the need for having a large number of tagged brands (which may not even be moving products) is obviated, and only products that sell fast are kept on pallets. Perhaps one of the distinguishing aspects regarding Aldi’s type of business is that goods are stocked in pallets, customers pick up their required items from these pallets, and load into their trolleys, which are to be compulsorily used after paying a refundable token towards use of trolley. After the pallet is empty, these are again refurbished, and the process goes on. Most of the products found are Aldi’s own labeled and branded products, and not much of other competing products or brands are found in Aldi stores. This reduces inventory carrying costs and the economic risks of having to stock a large number of brands, which may or may not sell. â€Å"The impact of using Value Chain Analysis by  is that it provides cheaper products to the consumers. In the past months, according to the Centre for Retail Studies, (2006) the cheaper products that Aldi gave the consumers impacted both the two biggest supermarkets in Australia, the Coles Myer and Woolworths. The compa nies came up with different strategies like Everyday low pricing (EDLP) and Save Everyday strategies.† (Undertake a full value chain (complementors) analysis of the Australian supermarket industry and its implications on the each of the three super market chains (Woolwoths, Coles and Aldi) 2009, para.19). The

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