Aldi: The European Hard Discounter's Strategy in Australia
|
Case Code: BSTR296 Case Length: 15 Pages Period: 2001-2008 Pub Date: 2008 Teaching Note: Not Available |
Price: Rs.300 Organization: Aldi Industry: Retail Countries: Australia Themes: International Business, Globalization Business |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Aldi Entry & Expansion in Australia
Aldi decided to enter Australia during the late 1990s and Michael Kloeters (Kloeters), who was working with Aldi Süd in Germany, was assigned the responsibility of launching Aldi's business in Australia. Recalling the proposal, Kloeters said, "For me, it was simply a question of do I want to tackle another challenge. I said yes, but I had a pre-condition, which was to come and have a look at the Australian marketplace."...
Stores and Merchandise Management
Aldi was officially rated by GROCERYchoice as the best value supermarket and cheapest for basic staple products in Australia. The company's operating strategy was found to be unique in the Australian retail with an aggressive discount pricing strategy. The international practices wherein the customers had to pack their own purchases and the absence of fancy displays and a trolley hire system were followed in Australia too...
Results
As of 2008, Aldi was one of the top ten retailers in Australia. Aldi's business in Australia was structured through limited partnerships and profit/loss figures were not disclosed. Commenting on the performance of Aldi in Australia, Kloeters said, "We have a very viable business and we are now strong enough to go about our business. We're here to stay. People cannot imagine that someone is prepared to live for years without profits."With more than 1 million customers visiting Aldi stores in Australia in a week, sales figures were estimated to be close to A$2 billion as of 2008 (Refer to Table II for top 10 retailers in Australia)...
Looking Ahead
Since its entry into the Australian market in 2001, Aldi had been very successful, prompting the retailer to expand rapidly. It planned to open several new outlets and take the store count to over 200, by the end of 2008...
Exhibits
Exhibit I: Features of Hard Discounters
Exhibit II: Geographical Distribution of Aldi Stores
Exhibit III: Aldi's Strategies
Exhibit IV: Retail Industry in Australia
Exhibit V: More about Woolworths and Coles
Buy this case study (Please select any one of the payment options)
| Price: Rs.300 |
Price: Rs.300 | PayPal (7 USD) |
