Aldi Strategic Analysis: Internal & External Factors

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Aldi Strategic Analysis: Internal & External Factors

Aldi opened doors in Germany, originally serving and supplying food products to the local population. Five years later, management foresaw the need for the company to reduce its dependence on local market conditions. The result was a move from and diversification into the European markets. The company started by acquiring small stores through which various products could be supplied. Aldi found that the market was saturated with bigger giants such as Tesco and Wal-Mart. The margin for profits in the industry was quite low. (Dess and Miller 1993) Show that the company had the advantage of operating in an industry where cash flows were large. This gave Aldi the first advantage in the industry. Unlike the competitors,…