Enhancing Aldi’s Business-Level Strategy for Increased Customer Satisfaction
Currently, Aldi uses a low-cost strategy, providing products to customers at low prices. It is not a perfectly ideal strategy, so the firm should combine this technique with a differentiation strategy. For instance, instead of focusing on cost, it should also focus on quality. Customers will be more satisfied with high-quality goods sold at a low price than low-quality or average-quality products. It could be ideal for Aldi to focus on exclusive brand products. This could be accomplished by partnering with leading manufacturers to develop their brands. The company currently has limited brand products, such as Vegemite, that it offers customers. It should seek suppliers who can provide products that match the characteristics desired by Aldi, such as taste. The company should try selling these prices at the most competitive prices to thrive in the industry.
Considering the five business-level techniques explained in chapter four, cost leadership is the strategy that most likely applies to Aldi. The corporate plan for this company was to keep costs low to make its products more affordable to the customers. This strategy assumes that price is the only factor defining customer satisfaction (Hitt et al., 2016). To keep costs down, the company introduced the cart distribution system to eliminate the need for hiring workers to pull over the shopping cart. Eliminating labor costs allowed the firm to sell products at low prices. Assuming that Aldi adopted a differentiation strategy in its operations. Differentiation would allow this company to compete effectively with other rivals in a specific market segment. The company can offer high-quality products for high-class and new customers who would appreciate such products. In this way, it would disrupt the world market favorably, allowing this firm to thrive.
Reference
Hitt, M., Ireland, R., & Hoskisson, R. (2016). Strategic Management: Concepts and Cases: Competitiveness and Globalization (12th ed.). Cengage Learning.
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Question 
Discussion 1
1. Review the Aldi case study on page 169 of your textbook.
Enhancing Aldi’s Business-Level Strategy for Increased Customer Satisfaction
- Assess your satisfaction with Aldi and make recommendations about how the company could modify its business-level strategy to increase your overall satisfaction level and attract new customers.
- Provide specific examples to support your response.
2. Analyze the five business-level strategies discussed in Chapter 4:
- Determine which strategy most likely applies to Aldi.
- Determine how a shopper’s experience might change if it switched to one of the other four (4) strategies (your choice). Explain your rationale.