Aldi case study Flashcards
what is aldi
is a German discount supermarket chain that has a focus on offering the lowest prices to customers
what is aldi’s market share
Aldi’s market share has remained fairly stable in
recent years at approximately 12%
12.8 billion
unique strategies for lowering cost
- Deposit to use trolley
- No big brand names
- No deli
- how products are displayed
- Self-packing of groceries
- Shorter opening hours
how aldi uses leadership
The Aldi Australia CEO is Tom Daunt
-reluntant to move to online model
business change in aldi
what is business change
Business change occurs when there is an alteration to the internal or external environment of a business. In the case of Aldi, there have been changes in operations (trialling self serve checkouts and online shopping), changes to government regulations (eg. COVID
regulations), changes in societal attitudes (eg. the community preferring online shopping or longer trading hours so they can shop in quieter periods) and changes in competitors
KPI for Aldi
market share ramined constant at 11-12%
customer complaints:
long checkout queues, stress placed on customers for packing, lack of self serve
key principles of force field analysis
Equilibrium/status quo: This can be considered Aldi’s current state prior to any change occuring
Allocating forces a numerical score: “”"”Driving forces such as societal attitudes, pursuit
of profit and competitors””” would likely be allocated greater numerical scores in terms of their strength in pushing change than organisational inertia and financial considerations.
driving forces
would be greater than restraining forces
driving forces for aldi
competitors
societal attitudes -covid
technology
innovation - AI weighting of fruits
Restraining forces for aldi
organisation inertia: low cost model. Relunctance to change their strategy
financial considerations: inital cost of setting up online store, installing self serve
porters generic strategy approach - lower cost for aldi
continually find strategies to
reduce cost of production in order to increase profit margins
important during the pandemic when wage increases have slowed and many people lost their jobs
porters generic strategy approach - Differentiation for aldi
Aldi’s ‘Special Buys’ are a unique product offering that no comparable supermarkets have.
queuing up for new releases of stock demonstrates that Aldi has employed this approach to strategic management
demonstrate differentiation: such as shortened opening hours, deposit for trolleys,
stocking mostly private brand labels, small store layouts and having customers pack their
own bags.
principles of lean management
Pull- this relates to avoiding overproduction and stockpiling
One piece flow — this largely relates to eliminating waiting time or idle time. One piece flow involves a piece of production moving through the operations process one at a time
Takt — this refers to the rate of production needed to meet customer demand. Takt time is the average time that passes between production starting on one unit of a product and the start of production of the next
unit, in order to meet demand.
Zero defects — this is all about the business striving for perfection. Errors or defects need to be identified as closely as possible to where they occur.
Segne learning organisation principles
personal mastery team learning shared vision mental models systems thinking
Driving forces (10)
managers employees innovation legislation globalistation technology competitors reduction of costs prusuit of profit societal attitudes
Driving forces
managers employees innovation legislation globalistation technology competitors reduction of costs prusuit of profit societal attitudes
