The Success of ALDI- An Environmental Analysis Essay

The Success of ALDI- An Environmental Analysis - Essay Example This report examines the strategies employed by Aldi that has inevitably contributed to its success to be the leading supermarket of choice in the United Kingdom and whether the external environment has influenced its growth as a ‘budget’ supermarket (Johnson & Scholes, 1999). Currently, Aldi has become the supermarket of choice for most shoppers in the United Kingdom that has immensely contributed to its profits shooting up almost 32 per cent year-on-year and its opening of the 500th store with fifty more set to be opened in the near future (Shooter, 2013). Almost one in three homes visit Aldi at least once a month and of these, one in five consumers belongs to the upper or middle-class showing how this supermarket chain has a competitive advantage as compared to its rivals. This store has put in place strategies to snatch customers from its competitors such as Sainsbury’s by introducing consumer-tailored goods and proclamations that almost half of its goods are produced in Britain by leading brands. However, the major success of Aldi can be put down to one factor which is the cost of its goods which are low achieved through cost-cutting by stocking and branding its own goods which means that they do not have to share profits with the brand manufa cturers. Just like any other business, Aldi is also affected by external influences in the running of its business affairs, which has an effect in its performance (Worthington and Britton, 2006).   As already stated half, the United Kingdom populace shop at Aldi for bargains with the supermarket set to be the sixth biggest supermarket in 2014 according to market research specialist Kantar. This is majorly due to the affordable price on the products Aldi sell as compared to the four leading stores as well as offering products of good quality just as is offered by its competitors making it have a competitive advantage in the market (Hawkes, 2013).