Aldi in the UK: Cost Leadership through Operational Excellence
|
Case Code: BSTR474 Case Length: 14 Pages Period: 2000 - 2014 Pub Date: 2015 Teaching Note: Available |
Price: Rs.400 Organization: ALDI Industry: Retail Countries: UK Themes: International Business, Globalization |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
In September 2014, Germany-based discount retailer Aldi announced that its pre-tax profit in the UK and Ireland had increased by 65 percent in 2013 from the £157.9 million it had registered in 2012. Aldi's share in the retail segment in the UK was 4.8% as of April 2104 and its growing clout was a cause for concern for the 'Big Four' retailers – Tesco, Sainsbury's, Morrisons, and Asda. In addition, Aldi also announced that it would increase its number of stores in the country to about 1,000 by 2022 from 500 in 2014. Experts said that move was likely to increase the competition further. According to Lloyd Harris, Professor of Marketing, Warwick Business School, "Could the results of Aldi reflect the start of a slow demise for the Big Four? It might just be...If the market trends continue, the Big Four foodretailers are going to find themselves squeezed."
Aldi was known for its distinctive business practices and was considered a pioneer in discount retailing in Germany. It was the third most respected corporate brand in Germany behind BMW and Siemens. It operated in several countries in Europe and entered the UK in 1990. Aldi struggled in its initial years in the UK. However, it stuck to its goal of 'providing customers with the products they buy regularly and ensure that those products are of the highest possible quality at guaranteed low prices'.....
Buy this case study (Please select any one of the payment options)
| Price: Rs.400 |
Price: Rs.400 | PayPal (9 USD) |
