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Aldi: The Dark Horse Discounter – Case Solution

Aldi was a hard discounter based in Germany that sells a variety of private-label groceries and household items in several stores. It was the world's 8th largest retailer. In 2013, Aldi initiated moving fast with its US expansion. While it has more than a thousand stores in various states, Aldi was still not popular in the US. It is said to be the same reason why Walmart did not make it in Germany. Since the US is Walmart's home market, could Aldi make it through the competition with Walmart in the US?

​Eric Van Den Steen; David Lane Harvard Business Review ( 714474-PDF-ENG ) February 07, 2014

Case questions answered:

Case study questions answered in the first solution:

  • Please identify the strategic issues and problems to be solved, describe the necessary analyses and conclusions, and present recommendations and implications. Do whatever analysis is needed to solve the problem you have identified.

C ase study questions answered in the second solution:

  • What are the key business problems Aldi is facing competing in the USA?
  • Who are the key stakeholders in these problems?
  • What is Aldi’s business-level strategy, and what are the activities that support this strategy?
  • How well is the company performing, particularly in terms of efficiency and profitability?
  • Does Aldi have a source of competitive advantage relative to Walmart?
  • Identify three solutions Aldi can use to address the business problems it faces, with the pros and cons of each solution.
  • Which solution do you recommend, and why?

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Aldi: The Dark Horse Discounter Case Answers

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EXECUTIVE SUMMARY – ALDI

An international brand with a rich history, Aldi is known for its low prices and no-frills grocery shopping experience. While Aldi has seen substantial success in European markets, they seem to have trouble integrating into the U.S. and understanding the ideologies of the American consumer.

Aldi has developed a presence in the U.S., spreading over 32 states and 1,200 stores. Despite this, they are still virtually unknown. Looking forward, Aldi wants to expand their organic food offerings and expand their presence in the U.S.

Some of the most notable threats in the grocery industry are Walmart and Target, incredibly large brands with immense customer loyalty that can leverage their size to negotiate low prices with suppliers. With trends in the U.S. constantly evolving, niche grocery stores focused on organic and health foods and wholesale stores are prominent competitors.

A holistic analysis of the macro environment in the U.S. is necessary to understand trends and American consumer behavior. Discount retail is a very competitive industry to navigate, with revenues of the top ten retailers totaling over $1 trillion.

Aldi has unique, inimitable resources that can aid it in its mission, such as its unique staffing levels, low-cost structure, and private-label products. With this advantage, Aldi needs to implement the right global expansion strategy to succeed in the U.S., creating the core question of what specific measures Aldi must take to differentiate itself in the market.

It is recommended that Aldi emphasize their customer retention efforts with a customer loyalty program, increase its presence in urban markets, and adopt innovative technology such as self-checkout. These three strategic insights will help guide Aldi through a successful expansion in the United States.

CASE ANALYSIS

Aldi has maintained a strong sense of industry leader regarding discount grocers, attributing its success to its reputation as a frugal, consistent grocery shopping experience.

The firm has stayed committed to its value of operational excellence, with an average number of 10 employees per store and its emphasis on private label products, which make up approximately 95% of its product offerings.

Many international brands struggle with being cognizant of the local culture, often choosing the wrong global expansion strategy and ending with failure. We have seen this with Walmart and its entry into Germany.

Exhibit A outlines the market conditions of the U.S., highlighting different trends and regulations that directly affect Aldi’s operations. It is crucial to assess all trends to be proactive in identifying opportunities and threats. Failing to take into account any of these factors can be detrimental to Aldi’s expansion.

This analysis shows that the grocery industry in the U.S. is relatively stable, and with groceries being a necessity, the industry will still thrive through economic boom and bust cycles. The firms that can adapt to trends quickly are the ones that succeed.

One prevalent trend is that of online ordering and self-checkout, feeding into the sensation of instant gratification that is common in the American consumer.

The scope of Aldi’s expansion efforts is incredibly ambitious, aiming to open 650 new stores by 2018. While they are trying to replicate initiatives that have been successful overseas, such as their successful expansion into Australia with over 270 stores, Aldi needs to tailor their expansion efforts to the U.S.’ unique business environment. What specific measures can Aldi take to differentiate itself in the market?

Industry Analysis

Exhibit B addresses various parameters of the competitive structure of the grocery industry and how they affect Aldi. There is a high barrier to entry due to the tremendous number of competitors and the high start-up costs associated with building an effective distribution network and establishing a brick-and-mortar store.

With various big players already in the space, it is…

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Aldi: The Dark Horse Discounter

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Aldi: the dark horse discounter description.

In 2013, Aldi-the world's 8th largest retailer-planned to accelerate its US expansion. Aldi was a German-based hard discounter that sold a limited assortment of private-label groceries and household items in barebones stores. Despite its presence with 1200 stores in 32 states, Aldi was still relatively unknown in the US. But it was often cited as one of the reasons for Walmart's exit from Germany. Could it compete with Walmart in the US, Walmart's home market?

Case Description Aldi: The Dark Horse Discounter

Strategic managment tools used in case study analysis of aldi: the dark horse discounter, step 1. problem identification in aldi: the dark horse discounter case study, step 2. external environment analysis - pestel / pest / step analysis of aldi: the dark horse discounter case study, step 3. industry specific / porter five forces analysis of aldi: the dark horse discounter case study, step 4. evaluating alternatives / swot analysis of aldi: the dark horse discounter case study, step 5. porter value chain analysis / vrio / vrin analysis aldi: the dark horse discounter case study, step 6. recommendations aldi: the dark horse discounter case study, step 7. basis of recommendations for aldi: the dark horse discounter case study, quality & on time delivery.

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Case Analysis of Aldi: The Dark Horse Discounter

Aldi: The Dark Horse Discounter is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Aldi: The Dark Horse Discounter is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Aldi: The Dark Horse Discounter case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Aldi: The Dark Horse Discounter will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Aldi: The Dark Horse Discounter case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Aldi: The Dark Horse Discounter, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Aldi: The Dark Horse Discounter case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, Aldi: The Dark Horse Discounter case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Aldi: The Dark Horse Discounter

Step 1 – Problem Identification of Aldi: The Dark Horse Discounter - Harvard Business School Case Study

The first step to solve HBR Aldi: The Dark Horse Discounter case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Aldi Discounter is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Aldi Discounter, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Aldi: The Dark Horse Discounter. The external environment analysis of Aldi: The Dark Horse Discounter will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Aldi: The Dark Horse Discounter case study. PESTEL analysis of " Aldi: The Dark Horse Discounter" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Aldi: The Dark Horse Discounter macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Aldi: The Dark Horse Discounter

To do comprehensive PESTEL analysis of case study – Aldi: The Dark Horse Discounter , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Aldi: The Dark Horse Discounter

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Aldi: The Dark Horse Discounter ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Aldi Discounter is operating, firms are required to store customer data within the premises of the country. Aldi Discounter needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Aldi: The Dark Horse Discounter has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Aldi Discounter in case study Aldi: The Dark Horse Discounter" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Aldi Discounter in case study “ Aldi: The Dark Horse Discounter ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Aldi Discounter in case study “ Aldi: The Dark Horse Discounter ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Aldi: The Dark Horse Discounter ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Aldi Discounter can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Aldi: The Dark Horse Discounter case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Aldi Discounter needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Aldi: The Dark Horse Discounter

Social factors that impact aldi: the dark horse discounter, technological factors that impact aldi: the dark horse discounter, environmental factors that impact aldi: the dark horse discounter, legal factors that impact aldi: the dark horse discounter, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: aldi: the dark horse discounter case study solution.

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Aldi: The Dark Horse Discounter

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Eric J. Van den Steen

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Aldi: the dark horse discounter change management analysis & solution, hbr change management solutions, strategy & execution case study | eric van den steen, david lane, case study description.

In 2013, Aldi-the world's 8th largest retailer-planned to accelerate its US expansion. Aldi was a German-based hard discounter that sold a limited assortment of private-label groceries and household items in barebones stores. Despite its presence with 1200 stores in 32 states, Aldi was still relatively unknown in the US. But it was often cited as one of the reasons for Walmart's exit from Germany. Could it compete with Walmart in the US, Walmart's home market?

Change Management, Strategy & Execution , Case Study Solution, Term Papers

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What is Change Management Definition & Process? Why transformation efforts fail? What are the Change Management Issues in Aldi: The Dark Horse Discounter case study?

According to John P. Kotter – Change Management efforts are the major initiatives an organization undertakes to either boost productivity, increase product quality, improve the organizational culture, or reverse the present downward spiral that the company is going through. Sooner or later every organization requires change management efforts because without reinventing itself organization tends to lose out in the competitive market environment. The competitors catch up with it in products and service delivery, disruptors take away the lucrative and niche market positioning, or management ends up sitting on its own laurels thus missing out on the new trends, opportunities and developments in the industry.

What are the John P. Kotter - 8 Steps of Change Management?

Eight Steps of Kotter's Change Management Execution are -

  • 1. Establish a Sense of Urgency
  • 2. Form a Powerful Guiding Coalition
  • 3. Create a Vision
  • 4. Communicate the Vision
  • 5. Empower Others to Act on the Vision
  • 6. Plan for and Create Short Term Wins
  • 7. Consolidate Improvements and Produce More Change
  • 8. Institutionalize New Approaches

Are Change Management efforts easy to implement? What are the challenges in implementing change management processes?

According to authorlist Change management efforts are absolutely essential for the surviving and thriving of the organization but they are also extremely difficult to implement. Some of the biggest obstacles in implementing change efforts are –

  • Change management is often a lengthy, time consuming, and resource consuming process. Managements try to avoid them because they reflect negatively on the short term financial balance sheet of the organization.
  • Change efforts are often targeted at making fundamental aspects in the business – operations and culture. Change management disrupts are status quo thus face opposition from both within and outside the organization.
  • Change efforts create an environment of uncertainty in the organization that impacts not only the productivity in the organization but also the level of trust in the organization.
  • Change management efforts are made when the organization is in dire need and have fewer resources. This creates silos protection mentality within the organization.
  • Change efforts are often made by new leaders because they are chosen by board to do so. These leaders often have less trust among the workforce compare to the people with whom they were already working with over the years.

Aldi: The Dark Horse Discounter SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis

How you can apply Change Management Principles to Aldi: The Dark Horse Discounter case study?

Leaders can implement Change Management efforts in the organization by following the “Eight Steps Method of Change Management” by John P. Kotter.

Step 1 - Establish a sense of urgency

What are areas that require urgent change management efforts in the “ Aldi: The Dark Horse Discounter “ case study. Some of the areas that require urgent changes are – organizing sales force to meet competitive realities, building new organizational structure to enter new markets or explore new opportunities. The leader needs to convince the managers that the status quo is far more dangerous than the change efforts.

Step 2 - Form a powerful guiding coalition

As mentioned earlier in the paper, most change efforts are undertaken by new management which has far less trust in the bank compare to the people with whom the organization staff has worked for long period of time. New leaders need to tap in the talent of the existing managers and integrate them in the change management efforts . This will for a powerful guiding coalition that not only understands the urgency of the situation but also has the trust of the employees in the organization. If the team able to explain at the grass roots level what went wrong, why organization need change, and what will be the outcomes of the change efforts then there will be a far more positive sentiment about change efforts among the rank and file.

Step 3 - Create a vision

The most critical role of the leader who is leading the change efforts is – creating and communicating a vision that can have a broader buy-in among employees throughout the organization. The vision should not only talk about broader objectives but also about how every little change can add up to the improvement in the overall organization.

Step 4 - Communicating the vision

Leaders need to use every vehicle to communicate the desired outcomes of the change efforts and how each employee impacted by it can contribute to achieve the desired change. Secondly the communication efforts need to answer a simple question for employees – “What it is in for the them”. If the vision doesn’t provide answer to this question then the change efforts are bound to fail because it won’t have buy-in from the required stakeholders of the organization.

Step 5 -Empower other to act on the vision

Once the vision is set and communicated, change management leadership should empower people at every level to take decisions regarding the change efforts. The empowerment should follow two key principles – it shouldn’t be too structured that it takes away improvisation capabilities of the managers who are working on the fronts. Secondly it shouldn’t be too loosely defined that people at the execution level can take it away from the desired vision and objectives.

Aldi: The Dark Horse Discounter PESTEL / PEST / STEP & Porter Five Forces Analysis

Step 6 - Plan for and create short term wins

Initially the change efforts will bring more disruption then positive change because it is transforming the status quo. For example new training to increase productivity initially will lead to decrease in level of current productivity because workers are learning new skills and way of doing things. It can demotivate the employees regarding change efforts. To overcome such scenarios the change management leadership should focus on short term wins within the long term transformation. They should carefully craft short term goals, reward employees for achieving short term wins, and provide a comprehensive understanding of how these short term wins fit into the overall vision and objectives of the change management efforts.

Step 7 - Consolidate improvements and produce more change

Short term wins lead to renewed enthusiasm among the employees to implement change efforts. Management should go ahead to put a framework where the improvements made so far are consolidated and more change efforts can be built on the top of the present change efforts.

Step 8 - Institutionalize new approaches

Once the improvements are consolidated, leadership needs to take steps to institutionalize the processes and changes that are made. It needs to stress how the change efforts have delivered success in the desired manner. It should highlight the connection between corporate success and new behaviour. Finally organization management needs to create organizational structure, leadership, and performance plans consistent with the new approach.

Is change management a process or event?

What many leaders and managers at the Aldi Discounter fails to recognize is that – Change Management is a deliberate and detail oriented process rather than an event where the management declares that the changes it needs to make in the organization to thrive. Change management not only impact the operational processes of the organization but also the cultural and integral values of the organization.

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Aldi’s Generic Competitive Strategy & Growth Strategies

Aldi generic competitive strategy, intensive growth strategies, competitive advantages, Porter, Ansoff, retail business analysis case study

Aldi’s competitive strategy involves cost-based advantages that enable retail business growth strategies. The discount supermarket chain continues to grow internationally despite strong competitors and market saturation. This generic competitive strategy and the intensive growth strategies help bring the goals of Aldi’s vision statement and mission statement to fruition. For example, the company’s competitive advantages and revenue growth strengthen capabilities for reaching strategic goals for retail business success. While Aldi faces competitive challenges, its generic strategy maintains competitive advantages for attracting target customers and ensuring profitable operations despite low selling prices. Aldi’s growth strategies aim for a stronger market presence and higher sales figures based on a larger market share.

Based on Michael E. Porter’s generic strategies for competitive advantage, Aldi focuses on cost as a defining factor in doing business. The company’s brand image and merchandise prices depend on this competitive strategy. Based on Igor Ansoff’s matrix of intensive growth strategies, Aldi focuses on attaining a larger share of its target markets. The company’s expansion depends on these growth strategies for its multinational retail business.

Aldi’s Generic Competitive Strategy

Aldi’s competitive strategy is cost leadership , which translates to low business costs and the ability to offer low and competitive selling prices. In Michael E. Porter’s model, this generic competitive strategy requires that the discount supermarket chain maintain low operating costs. Competitive advantages based on low business costs mean that Aldi’s generic strategy ensures competitiveness against other retailers, including Lidl, Whole Foods , Costco , Walmart , and Amazon ’s e-commerce and brick-and-mortar stores. This competitive strategy also helps deter Home Depot , which is not a direct competitor, from diversifying to offer food products through new business operations similar to Aldi’s.

Aldi’s business model involves low costs that support low prices for private-label products that are alternatives to many mainstream brands that are more expensive. With cost leadership as a generic competitive strategy, cost-effective operations lead to competitive advantages, including the business strengths described in the SWOT analysis of Aldi . These strengths empower the company, especially in competing with big-box retailers that offer low prices. The Five Forces analysis of Aldi depicts a highly competitive market where effective cost leadership as a competitive strategy can support long-term business growth and success. This generic competitive strategy determines cost limits and the productivity and process efficiency targets in Aldi’s operations management.

Aldi’s Growth Strategies

Aldi’s primary growth strategy is market penetration involving additional stores, such as the ones in the United States. In Igor Ansoff’s matrix, this intensive growth strategy has the goal of generating more sales revenues from the same target customers in the company’s current retail markets. For example, adding new grocery stores in the U.S. can increase Aldi’s revenues and grow the business. Also, the company can sell more merchandise to the same customers through enhanced marketing and related strategies. Aldi’s marketing mix (4P) reflects business efforts in implementing this intensive growth strategy. New store locations based on market penetration as a growth strategy can lead to changes in Aldi’s business structure (company structure) , especially geographic divisions for operations in various markets.

Aldi also relies on product development as an intensive growth strategy, although to a limited extent. This strategy aims to grow the retail business through new products for more sales. For example, Aldi introduces private-label products whose close alternatives are difficult to find elsewhere. Through this growth strategy, the company attracts buyers to its stores. External factors, like the ones described in the PESTLE/PESTEL analysis of Aldi , inform decisions about the kinds and characteristics of new products to develop in implementing this intensive growth strategy.

  • Aldi History .
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  • America’s Low-Price Leader ALDI Expands Footprint Nationwide with 800 New Stores by the End of 2028 .
  • Gupta, A., Pachar, N., Jain, A., Govindan, K., & Jha, P. C. (2023). Resource reallocation strategies for sustainable efficiency improvement of retail chains. Journal of Retailing and Consumer Services, 73 , 103309.
  • Leppänen, P., George, G., & Alexy, O. (2023). When do novel business models lead to high performance? A configurational approach to value drivers, competitive strategy, and firm environment. Academy of Management Journal, 66 (1), 164-194.
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  • Aldi: The Dark Horse Discounter
  • Strategy & Execution / MBA Resources

Introduction to case study solution

EMBA Pro case study solution for Aldi: The Dark Horse Discounter case study

At EMBA PRO , we provide corporate level professional case study solution. Aldi: The Dark Horse Discounter case study is a Harvard Business School (HBR) case study written by Eric Van Den Steen, David Lane. The Aldi: The Dark Horse Discounter (referred as “Aldi Discounter” from here on) case study provides evaluation & decision scenario in field of Strategy & Execution. It also touches upon business topics such as - Value proposition, . Our immersive learning methodology from – case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Strategy & Execution field, and broaden their skill set.

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Case Description of Aldi: The Dark Horse Discounter Case Study

In 2013, Aldi-the world's 8th largest retailer-planned to accelerate its US expansion. Aldi was a German-based hard discounter that sold a limited assortment of private-label groceries and household items in barebones stores. Despite its presence with 1200 stores in 32 states, Aldi was still relatively unknown in the US. But it was often cited as one of the reasons for Walmart's exit from Germany. Could it compete with Walmart in the US, Walmart's home market?

Case Authors : Eric Van Den Steen, David Lane

Topic : strategy & execution, related areas :, what is the case study method how can you use it to write case solution for aldi: the dark horse discounter case study.

Almost all of the case studies contain well defined situations. MBA and EMBA professional can take advantage of these situations to - apply theoretical framework, recommend new processes, and use quantitative methods to suggest course of action. Awareness of the common situations can help MBA & EMBA professionals read the case study more efficiently, discuss it more effectively among the team members, narrow down the options, and write cogently.

Case Study Solution Approaches

Three Step Approach to Aldi: The Dark Horse Discounter Case Study Solution

The three step case study solution approach comprises – Conclusions – MBA & EMBA professionals should state their conclusions at the very start. It helps in communicating the points directly and the direction one took. Reasons – At the second stage provide the reasons for the conclusions. Why you choose one course of action over the other. For example why the change effort failed in the case and what can be done to rectify it. Or how the marketing budget can be better spent using social media rather than traditional media. Evidences – Finally you should provide evidences to support your reasons. It has to come from the data provided within the case study rather than data from outside world. Evidences should be both compelling and consistent. In case study method there is ‘no right’ answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios.

Case Study Solution of Aldi: The Dark Horse Discounter

We write Aldi: The Dark Horse Discounter case study solution using Harvard Business Review case writing framework & HBR Strategy & Execution learning notes. We try to cover all the bases in the field of Strategy & Execution, and other related areas.

Objectives of using various frameworks in Aldi: The Dark Horse Discounter case study solution

By using the above frameworks for Aldi: The Dark Horse Discounter case study solutions, you can clearly draw conclusions on the following areas – What are the strength and weaknesses of Aldi Discounter (SWOT Analysis) What are external factors that are impacting the business environment (PESTEL Analysis) Should Aldi Discounter enter new market or launch new product (Opportunities & Threats from SWOT Analysis) What will be the expected profitability of the new products or services (Porter Five Forces Analysis) How it can improve the profitability in a given industry (Porter Value Chain Analysis) What are the resources needed to increase profitability (VRIO Analysis) Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis)

SWOT Analysis of Aldi: The Dark Horse Discounter

SWOT analysis stands for – Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses are result of Aldi Discounter internal factors, while opportunities and threats arise from developments in external environment in which Aldi Discounter operates. SWOT analysis will help us in not only getting a better insight into Aldi Discounter present competitive advantage but also help us in how things have to evolve to maintain and consolidate the competitive advantage.

- High customer loyalty & repeat purchase among existing customers – Aldi Discounter old customers are still loyal to the firm even though it has limited success with millennial. I believe that Aldi Discounter can make a transition even by keeping these people on board.

- Streamlined processes and efficient operation management – Aldi Discounter is one of the most efficient firms in its segment. The credit for the performance goes to successful execution and efficient operations management.

- Aldi Discounter business model can be easily replicated by competitors – According to Eric Van Den Steen, David Lane , the business model of Aldi Discounter can be easily replicated by players in the industry.

- Little experience of international market – Even though it is a major player in local market, Aldi Discounter has little experience in international market. According to Eric Van Den Steen, David Lane , Aldi Discounter needs international talent to penetrate into developing markets.

Opportunities

- E-Commerce and Social Media Oriented Business Models – E-commerce business model can help Aldi Discounter to tie up with local suppliers and logistics provider in international market. Social media growth can help Aldi Discounter to reduce the cost of entering new market and reaching to customers at a significantly lower marketing budget.

- Increase in Consumer Disposable Income – Aldi Discounter can use the increasing disposable income to build a new business model where customers start paying progressively for using its products. According to Eric Van Den Steen, David Lane of Aldi: The Dark Horse Discounter case study, Aldi Discounter can use this trend to expand in adjacent areas .

- Home market marketing technique won’t work in new markets such as India and China where scale is prized over profitability.

- Age and life-cycle segmentation of Aldi Discounter shows that the company still hasn’t able to penetrate the millennial market.

Once all the factors mentioned in the Aldi: The Dark Horse Discounter case study are organized based on SWOT analysis, just remove the non essential factors. This will help you in building a weighted SWOT analysis which reflects the real importance of factors rather than just tabulation of all the factors mentioned in the case.

What is PESTEL Analysis

PESTEL /PEST / STEP Analysis of Aldi: The Dark Horse Discounter Case Study

PESTEL stands for – Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Aldi Discounter operates in. Eric Van Den Steen, David Lane provides extensive information about PESTEL factors in Aldi: The Dark Horse Discounter case study.

Political Factors

- Little dangers of armed conflict – Based on the research done by international foreign policy institutions, it is safe to conclude that there is very little probability of country entering into an armed conflict with another state.

- Political consensus among various parties regarding taxation rate and investment policies. Over the years the country has progressively worked to lower the entry of barrier and streamline the tax structure.

Economic Factors

- Inflation rate is one of the key criteria to consider for Aldi Discounter before entering into a new market.

- Foreign Exchange movement is also an indicator of economic stability. Aldi Discounter should closely consider the forex inflow and outflow. A number of Aldi Discounter competitors have lost money in countries such as Brazil, Argentina, and Venezuela due to volatile forex market.

Social Factors

- Consumer buying behavior and consumer buying process – Aldi Discounter should closely follow the dynamics of why and how the consumers are buying the products both in existing categories and in segments that Aldi Discounter wants to enter.

- Leisure activities, social attitudes & power structures in society - are needed to be analyzed by Aldi Discounter before launching any new products as they will impact the demand of the products.

Technological Factors

- 5G has potential to transform the business environment especially in terms of marketing and promotion for Aldi Discounter.

- Artificial intelligence and machine learning will give rise to importance of speed over planning. Aldi Discounter needs to build strategies to operate in such an environment.

Environmental Factors

- Environmental regulations can impact the cost structure of Aldi Discounter. It can further impact the cost of doing business in certain markets.

- Consumer activism is significantly impacting Aldi Discounter branding, marketing and corporate social responsibility (CSR) initiatives.

Legal Factors

- Property rights are also an area of concern for Aldi Discounter as it needs to make significant infrastructure investment just to enter new market.

- Health and safety norms in number of markets that Aldi Discounter operates in are lax thus impact the competition playing field.

What are Porter Five Forces

Porter Five Forces Analysis of Aldi: The Dark Horse Discounter

Competition among existing players, bargaining power of suppliers, bargaining power of buyers, threat of new entrants, and threat of substitutes.

What is VRIO Analysis

VRIO Analysis of Aldi: The Dark Horse Discounter

VRIO stands for – Value of the resource that Aldi Discounter possess, Rareness of those resource, Imitation Risk that competitors pose, and Organizational Competence of Aldi Discounter. VRIO and VRIN analysis can help the firm.

Resources Value Rare Imitation Organization Competitive Advantage
Talent to Manage Regulatory and Legal Obligations Yes No Can be imitated by competitors Yes Not critical factor
Access to Cheap Capital Yes No Can be imitated by competitors Not been totally exploited Not significant in creating competitive advantage
Intellectual Property Rights, Copyrights, and Trademarks Yes, they are extremely valuable especially to thwart competition Yes, IPR and other rights are rare and competition can't copy Risk of imitation is low but given the margins in the industry disruption chances are high So far the firm has not utilized the full extent of its IPR & other properties Providing Strong Competitive Advantage

What is Porter Value Chain

Porter Value Chain Analysis of Aldi: The Dark Horse Discounter

As the name suggests Value Chain framework is developed by Michael Porter in 1980’s and it is primarily used for analyzing Aldi Discounter relative cost and value structure. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Aldi Discounter. This will help in answering – the related costs and various sources of competitive advantages of Aldi Discounter in the markets it operates in. The process can also be done to competitors to understand their competitive advantages and competitive strategies. According to Michael Porter – Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks.

What is BCG Growth Share Matrix

BCG Growth Share Matrix of Aldi: The Dark Horse Discounter

BCG Growth Share Matrix is very valuable tool to analyze Aldi Discounter strategic positioning in various sectors that it operates in and strategic options that are available to it. Product Market segmentation in BCG Growth Share matrix should be done with great care as there can be a scenario where Aldi Discounter can be market leader in the industry without being a dominant player or segment leader in any of the segment. BCG analysis should comprise not only growth share of industry & Aldi Discounter business unit but also Aldi Discounter - overall profitability, level of debt, debt paying capacity, growth potential, expansion expertise, dividend requirements from shareholders, and overall competitive strength. Two key considerations while using BCG Growth Share Matrix for Aldi: The Dark Horse Discounter case study solution - How to calculate Weighted Average Market Share using BCG Growth Share Matrix Relative Weighted Average Market Share Vs Largest Competitor

5C Marketing Analysis of Aldi: The Dark Horse Discounter

4p marketing analysis of aldi: the dark horse discounter, porter five forces analysis and solution of aldi: the dark horse discounter, porter value chain analysis and solution of aldi: the dark horse discounter, case memo & recommendation memo of aldi: the dark horse discounter, blue ocean analysis and solution of aldi: the dark horse discounter, marketing strategy and analysis aldi: the dark horse discounter, vrio /vrin analysis & solution of aldi: the dark horse discounter, pestel / step / pest analysis of aldi: the dark horse discounter, swot analysis and solution of aldi: the dark horse discounter, references & further readings.

Eric Van Den Steen, David Lane (2018) , "Aldi: The Dark Horse Discounter Harvard Business Review Case Study. Published by HBR Publications.

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ALDI Strategy Case Study Analysis

Introduction.

Business enterprises employ various initiatives to maximize returns and achieve competitive advantage over competitors in there respective industries (Kafalas, 1981) . On this note, ALDI Australia has adopted unique strategic management principles that have helped it to gain and maintain competitiveness amidst various challenges faced in the industry. This paper examines in brief the concepts of strategic management and strategic competitiveness in relation to ALDA Australia. Further, it explores the external and internal environments as well as the Business Level Strategy (BLS) of ALDI. Finally, a conclusion and several recommendations to the current strategies of this company are made.

Strategic management and strategic competitiveness

Strategic management refers to coordinated and integrated set of actions and commitments by an organization’s leadership designed to steer the organization to maximize returns and to gain competitive advantage over competitors (Rogers & Caswell, 1988). On the other hand, strategic competitiveness describes a situation where an enterprise successfully develops and implements a value-adding strategy (Hitt et al , 1994). As – noted, the level of competitive rivalry in Australian food and grocery industry is high due to high level of similarity in the products offered by different players. However, different retailers have developed different strategies to enable them gain competitive edge in the market while others compete along similar dimensions. For instance, Woolworths, IGAall and Coles-Myer focus on product and market differentiation strategies. ALDI’s strategy involves offering high quality products at lower prices in comparison with those offered by competitors (Kleeman, 2012).

External Environment

According to Porter (as cited in Kourteli, 2005), the purpose of external analysis on a firm’s structure is to understand the effectiveness of its sources of competitive advantage. This analysis is based on the Porter’s five forces Model. As mentioned earlier, the level of competitive rivalry in Australian food and grocery industry is high as there are numerous global and local retailers offering similar products and services to those that are provided by ALDI. The bargaining power of customers for ALDI can be said to be moderate. Buyers are able to switch from one retailer to another due to close similarities of products offered by different retailers (Kleeman, 2012). However, they are price sensitive and this is an added advantage to ALDI since the buyers have a notion that this enterprise offers quality and cheaper goods.

The bargaining power of suppliers for ALDI is low since there are numerous suppliers offering similar products. ALDI has different options and goes for suppliers with cheapest prices. However, ALDI Australia currently sources its products from local suppliers, which are more expensive than imported products. The lack of strong preference for specific brands by consumers makes it easy for new entrants to survive in the industry (Kleeman, 2012). According to Cardwell (2008), this threat is heightened by the fact that it is easy for a competitor to copy the strategies of another competitor and to implement them in the market. The threat of substitutes in his industry is considerably high due to high level of similarity of products offered by different competitors. Consumers can easily switch from one retailer to another.

Internal Environment

According to Chen, and Mohamed (2008) , the strength of the internal environment of an enterprise is determined by the effectiveness of its current strategies and how well resources are mobilized in support of the strategies.  ALDI has adopted simple and less complicated organization structure which has contributed effectively in cost saving. The company focuses on core operations only in locations that are deemed to be profitable; limits the number of personnel in each store; their store layouts are designed in a simple manner; and adheres to restricted opening and closing hours (Haberer, 2010) . This enables the enterprise to offer high quality products at low costs. The enterprise produces its own products and brands, making it to have a high control over them. Apart from this, this organization has listed all of its products and their prices online (Kleeman, 2012) . This has made it easy for the consumers to gain useful information about the firm. However, the reliance on a small number of trained workers can be considered a weakness. Also, the limited range of products offered by the enterprise can also be deemed as a weakness since it limits consumer choices (Haberer, 2010).

BLS refers to a set of actions taken by an enterprise in order to satisfy the needs of customers and hence, achieve competitive advantage in the future. Hua et al (2011) explains that, “a business enterprise can benefit from BSL by exploiting core competences in specific, individual product or service markets.” ALDI’s BLS focuses on offering quality products at lower costs to their customers. This is achieved through adopting an organizational structure that minimizes costs. They are also able to conduct a quality control of their products due to the narrow range of product categories (Haberer, 2010). This strategy can be considered as a sustainable source of competitive advantage for this enterprise.

Recommendations and Conclusion

Based on the above analysis, various recommendations can be made. First, ALDI needs to focus more on product diversification in order to add more choices for customers. Secondly, they should focus on expanding its operations within Australia through a store rollout program. As well, this company should maintain its strategy that focuses on offering high quality products at lower prices. Another suggestion is to increase percentage of imported supplies and hence, raise profits. It is essential for this firm to catch up with the developing technology by developing an online system that includes a platform for transaction and delivery.

In conclusion, this paper has addressed the current strategies adopted by ALDI. The paper has examined the competitive position ALDI’s, internal and external environments and its business level strategies. As noted in the paper, it is necessary for ALDI to reconsider its strategies and take into account the recommendations stated above in order to gain and maintain competitive edge over competitors in the long–run.

Also Study: Joint Business Venture of ALDI Multinational Company in China’s Market

References;

  • Cardwell, P. (2008), Adwatch.(ALDI Group’s brand strategy overview). Marketing . 23
  • Chen, L. & Mohamed, S., (2008), Impact of the internal business environment on knowledge management within construction organisations. Construction Innovation 8(1), pp. 61 – 81, DOI 10.1108/14714170810846521
  • Haberer, J. (2010), Strategic management , Sydney: GRIN Verlag
  • Hitt, M. A., Hoskisson, R. E., Harrison, J. S. & Summers, T. P. (1994), Human Capital and Strategic Competitiveness in the 1990s. Journal of Management Development . 13(1), pp. 35 – 46
  • Hua, S., Chatterjee, S. R.,&  Jingliang, C., (2011) Achieving competitive advantage in service supply chain: evidence from the Chinese steel industry, Chinese Management Studies , 5( 1), pp.68 – 81
  • Kafalas, A. G., (1981), Analyzing changes in the external business environment, Strategy & Leadership, 9(4), pp. 26 – 46, DOI: 10.1108/eb053956
  • Kleeman, F. C., (2012), Supply Chain Strategy Analysis for Aldi: Supply Chain Management Im
  • Kourteli, L., (2005), Scanning the business external environment for information: evidence from Greece. Information Research: An international electronic journal . 11(1), Pp. 242-257
  • Einzelhandel: Eine Strategische Analyse Des Discounters ALDI. Sydney: GRIN Verlag
  • Rogers, T. T. & Caswell, J. A., (1988), Strategic management and the internal organization of food marketing firms, Agribusiness .  4 (1), pp. 3 – 10, DOI: 10.1002/1520-6297(198801)4:1<3::AID-AGR2720040103>3.0.CO;2-S

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The Aldi Brand Harvard Case Solution & Analysis

Home >> Harvard Case Study Analysis Solutions >> The Aldi Brand

The Aldi Brand Case Study Solution

On the other hand, Coles and Wool worths were initially just focused on selling national brands with an extensive product line to a large consumer base.  Both of the brands hadn’t put any emphasis on private label brands initially, but now both the brands are considering to shift their focus on private label brands, with Coles considering a single while Wool worths considering multiple private label brands.

Other two new entrants including Amazon and Lidl are also focused at private label brands. This implies that the segment in which Aldi has a strong foothold is now susceptible to change with the entrance of certain new and old players in the market segment.  In this scenario, Aldi must consider different and innovative as well as highly efficient strategic initiatives to deal with the situation.

Value Propositions:

Another major area that could be discussed for evaluating the business model of Aldi and its peers is the evaluation of the value preposition that Aldi and its competitors provide to their customers through selling products via various techniques.  Aldi is focused on value preposition to its customers who seek competitive products at lower prices. The company offers limited lines which are dominated by private labels in order to meet the needs of the value conscious customers and to provide them a superior quality products in order to create value to its customers. Aldi’s strategy is to focus on providing high quality food at discount rates or low prices in order to reduce the daily expenses of the consumers, and to create value to the end customers. (Osterwalde, Pigneur, Bernarda,, & Smith)

Customer Relationships:

Aldi has a strong relationship with its customer. Aldi has captured those consumers who seek low priced quality products. The company offers competitive products at lower prices and continuously offers its products with lucrative discount offers for the discount seeking grocery shoppers in order to reduce their daily expenses and increase their value for money spending and satisfaction.(unknown, n.d.)

Key Partnerships:

Aldi has a strong long term relationship with their supplier in order to produce the quality product and meet the standards. As the continuous growth in the sales of the company, the company buys the raw material and the products in bulk quantity by which the company could easily avail the discount and provide low cots to their end consumers. Aldi has been narrowing the range of the products in order to maintain the quality and the cost associated with the logistics and distribution. It has built simple warehouses in order to reduce the cost. The strong association with the company’s supplier enables Aldi to provide high quality products at low prices. The strong long term relationship with the suppliers will help the company inretaining the potential consumer along with the consistent quality products at lower prices.

Organizational Structure:

The structure of the Aldi is composed of formal structure and minimization of functions. Staff of the company is also known as internal stake holders which can help the company in order to build the culture and efficiencies. In order to avoid misunderstand and quick decision making the company has formal and clear reporting lines in which each staff knows when and to whom to report, and rules and regulations about reporting. Aldi is not using so many functions in order to reduce the complexity and minimization of cost. The layout of the company’s stores are simple. It has small super markets around the globe, while its competitors have bigger stores. The company produces in bulk quantity while narrowing the range in order to reduce the cost linked with stocks and logistics and increase the operational efficiencies. The company is also using a low technology in order to reduce the complexity and cost.

Recommendations

From the above analysis, it could be said that although the value proposition strategies and the business model followed by Aldi including its strong partnership relations, customers’ focused strategies, cost leadership, led to the company’s growth for two decades, but, in the changing industry environment, Aldi must put efforts to change its strategic position in long run to mitigate the external risks posed by the new entrants and the existing competitors. Aldi must revise its current strategic position. In this situation, Bowman Model could be implemented to explore various strategic positions for Aldi to come up with these market risks.  (Fernando, 2017)

As stated above, Aldi is currently positioned as low price brand in the Bowman Clock. However, the firm could also explore various other strategic position using the Bowman clock. Aldi would also position themselves on hybrid (combination of low price and differentiation). By using the hybrid position Aldi would sell its products at competitive prices and to retain their customers by differentiating (value adding) its products from its competitors’. The company could also use the differentiation position for their products in which the prices of the company’s product is relatively moderate in order to provide the different product to their consumer in comparison to their competitors’. Aldi can also use the focused differentiation in which the prices of the products are relatively high in comparison to the competitors’ but the customers buy the product due to high perceived value, which is not considered in the other competitors’ product.

BOWMAN Model

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ECHOCARDIOGRAM sound wave test of the heart EDEMA excess fluid collecting in tissue EEG electric brain wave tracing (electroencephalogram) EFFICACY effectiveness ELECTROCARDIOGRAM electrical tracing of the heartbeat (ECG or EKG) ELECTROLYTE IMBALANCE an imbalance of minerals in the blood EMESIS vomiting EMPIRIC based on experience ENDOSCOPIC EXAMINATION viewing an  internal part of the body with a lighted tube  ENTERAL by way of the intestines EPIDURAL outside the spinal cord ERADICATE get rid of (such as disease) Page 2 of 7 EVALUATED, ASSESSED examined for a medical condition EXPEDITED REVIEW rapid review of a protocol by the IRB Chair without full committee approval, permitted with certain low-risk research studies EXTERNAL outside the body EXTRAVASATE to leak outside of a planned area, such as out of a blood vessel

FDA U.S. Food and Drug Administration, the branch of federal government that approves new drugs FIBROUS having many fibers, such as scar tissue FIBRILLATION irregular beat of the heart or other muscle

GENERAL ANESTHESIA pain prevention by giving drugs to cause loss of consciousness, as during surgery GESTATIONAL pertaining to pregnancy

HEMATOCRIT amount of red blood cells in the blood HEMATOMA a bruise, a black and blue mark HEMODYNAMIC MEASURING blood flow HEMOLYSIS breakdown in red blood cells HEPARIN LOCK needle placed in the arm with blood thinner to keep the blood from clotting HEPATOMA cancer or tumor of the liver HERITABLE DISEASE can be transmitted to one’s offspring, resulting in damage to future children HISTOPATHOLOGIC pertaining to the disease status of body tissues or cells HOLTER MONITOR a portable machine for recording heart beats HYPERCALCEMIA high blood calcium level HYPERKALEMIA high blood potassium level HYPERNATREMIA high blood sodium level HYPERTENSION high blood pressure HYPOCALCEMIA low blood calcium level HYPOKALEMIA low blood potassium level HYPONATREMIA low blood sodium level HYPOTENSION low blood pressure HYPOXEMIA a decrease of oxygen in the blood HYPOXIA a decrease of oxygen reaching body tissues HYSTERECTOMY surgical removal of the uterus, ovaries (female sex glands), or both uterus and ovaries

IATROGENIC caused by a physician or by treatment IDE investigational device exemption, the license to test an unapproved new medical device IDIOPATHIC of unknown cause IMMUNITY defense against, protection from IMMUNOGLOBIN a protein that makes antibodies IMMUNOSUPPRESSIVE drug which works against the body's immune (protective) response, often used in transplantation and diseases caused by immune system malfunction IMMUNOTHERAPY giving of drugs to help the body's immune (protective) system; usually used to destroy cancer cells IMPAIRED FUNCTION abnormal function IMPLANTED placed in the body IND investigational new drug, the license to test an unapproved new drug INDUCTION PHASE beginning phase or stage of a treatment INDURATION hardening INDWELLING remaining in a given location, such as a catheter INFARCT death of tissue due to lack of blood supply INFECTIOUS DISEASE transmitted from one person to the next INFLAMMATION swelling that is generally painful, red, and warm INFUSION slow injection of a substance into the body, usually into the blood by means of a catheter INGESTION eating; taking by mouth INTERFERON drug which acts against viruses; antiviral agent INTERMITTENT occurring (regularly or irregularly) between two time points; repeatedly stopping, then starting again INTERNAL within the body INTERIOR inside of the body INTRAMUSCULAR into the muscle; within the muscle INTRAPERITONEAL into the abdominal cavity INTRATHECAL into the spinal fluid INTRAVENOUS (IV) through the vein INTRAVESICAL in the bladder INTUBATE the placement of a tube into the airway INVASIVE PROCEDURE puncturing, opening, or cutting the skin INVESTIGATIONAL NEW DRUG (IND) a new drug that has not been approved by the FDA INVESTIGATIONAL METHOD a treatment method which has not been proven to be beneficial or has not been accepted as standard care ISCHEMIA decreased oxygen in a tissue (usually because of decreased blood flow)

LAPAROTOMY surgical procedure in which an incision is made in the abdominal wall to enable a doctor to look at the organs inside LESION wound or injury; a diseased patch of skin LETHARGY sleepiness, tiredness LEUKOPENIA low white blood cell count LIPID fat LIPID CONTENT fat content in the blood LIPID PROFILE (PANEL) fat and cholesterol levels in the blood LOCAL ANESTHESIA creation of insensitivity to pain in a small, local area of the body, usually by injection of numbing drugs LOCALIZED restricted to one area, limited to one area LUMEN the cavity of an organ or tube (e.g., blood vessel) LYMPHANGIOGRAPHY an x-ray of the lymph nodes or tissues after injecting dye into lymph vessels (e.g., in feet) LYMPHOCYTE a type of white blood cell important in immunity (protection) against infection LYMPHOMA a cancer of the lymph nodes (or tissues)

MALAISE a vague feeling of bodily discomfort, feeling badly MALFUNCTION condition in which something is not functioning properly MALIGNANCY cancer or other progressively enlarging and spreading tumor, usually fatal if not successfully treated MEDULLABLASTOMA a type of brain tumor MEGALOBLASTOSIS change in red blood cells METABOLIZE process of breaking down substances in the cells to obtain energy METASTASIS spread of cancer cells from one part of the body to another METRONIDAZOLE drug used to treat infections caused by parasites (invading organisms that take up living in the body) or other causes of anaerobic infection (not requiring oxygen to survive) MI myocardial infarction, heart attack MINIMAL slight MINIMIZE reduce as much as possible Page 4 of 7 MONITOR check on; keep track of; watch carefully MOBILITY ease of movement MORBIDITY undesired result or complication MORTALITY death MOTILITY the ability to move MRI magnetic resonance imaging, diagnostic pictures of the inside of the body, created using magnetic rather than x-ray energy MUCOSA, MUCOUS MEMBRANE moist lining of digestive, respiratory, reproductive, and urinary tracts MYALGIA muscle aches MYOCARDIAL pertaining to the heart muscle MYOCARDIAL INFARCTION heart attack

NASOGASTRIC TUBE placed in the nose, reaching to the stomach NCI the National Cancer Institute NECROSIS death of tissue NEOPLASIA/NEOPLASM tumor, may be benign or malignant NEUROBLASTOMA a cancer of nerve tissue NEUROLOGICAL pertaining to the nervous system NEUTROPENIA decrease in the main part of the white blood cells NIH the National Institutes of Health NONINVASIVE not breaking, cutting, or entering the skin NOSOCOMIAL acquired in the hospital

OCCLUSION closing; blockage; obstruction ONCOLOGY the study of tumors or cancer OPHTHALMIC pertaining to the eye OPTIMAL best, most favorable or desirable ORAL ADMINISTRATION by mouth ORTHOPEDIC pertaining to the bones OSTEOPETROSIS rare bone disorder characterized by dense bone OSTEOPOROSIS softening of the bones OVARIES female sex glands

PARENTERAL given by injection PATENCY condition of being open PATHOGENESIS development of a disease or unhealthy condition PERCUTANEOUS through the skin PERIPHERAL not central PER OS (PO) by mouth PHARMACOKINETICS the study of the way the body absorbs, distributes, and gets rid of a drug PHASE I first phase of study of a new drug in humans to determine action, safety, and proper dosing PHASE II second phase of study of a new drug in humans, intended to gather information about safety and effectiveness of the drug for certain uses PHASE III large-scale studies to confirm and expand information on safety and effectiveness of new drug for certain uses, and to study common side effects PHASE IV studies done after the drug is approved by the FDA, especially to compare it to standard care or to try it for new uses PHLEBITIS irritation or inflammation of the vein PLACEBO an inactive substance; a pill/liquid that contains no medicine PLACEBO EFFECT improvement seen with giving subjects a placebo, though it contains no active drug/treatment PLATELETS small particles in the blood that help with clotting POTENTIAL possible POTENTIATE increase or multiply the effect of a drug or toxin (poison) by giving another drug or toxin at the same time (sometimes an unintentional result) POTENTIATOR an agent that helps another agent work better PRENATAL before birth PROPHYLAXIS a drug given to prevent disease or infection PER OS (PO) by mouth PRN as needed PROGNOSIS outlook, probable outcomes PRONE lying on the stomach PROSPECTIVE STUDY following patients forward in time PROSTHESIS artificial part, most often limbs, such as arms or legs PROTOCOL plan of study PROXIMAL closer to the center of the body, away from the end PULMONARY pertaining to the lungs

QD every day; daily QID four times a day

RADIATION THERAPY x-ray or cobalt treatment RANDOM by chance (like the flip of a coin) RANDOMIZATION chance selection RBC red blood cell RECOMBINANT formation of new combinations of genes RECONSTITUTION putting back together the original parts or elements RECUR happen again REFRACTORY not responding to treatment REGENERATION re-growth of a structure or of lost tissue REGIMEN pattern of giving treatment RELAPSE the return of a disease REMISSION disappearance of evidence of cancer or other disease RENAL pertaining to the kidneys REPLICABLE possible to duplicate RESECT remove or cut out surgically RETROSPECTIVE STUDY looking back over past experience

SARCOMA a type of cancer SEDATIVE a drug to calm or make less anxious SEMINOMA a type of testicular cancer (found in the male sex glands) SEQUENTIALLY in a row, in order SOMNOLENCE sleepiness SPIROMETER an instrument to measure the amount of air taken into and exhaled from the lungs STAGING an evaluation of the extent of the disease STANDARD OF CARE a treatment plan that the majority of the medical community would accept as appropriate STENOSIS narrowing of a duct, tube, or one of the blood vessels in the heart STOMATITIS mouth sores, inflammation of the mouth STRATIFY arrange in groups for analysis of results (e.g., stratify by age, sex, etc.) STUPOR stunned state in which it is difficult to get a response or the attention of the subject SUBCLAVIAN under the collarbone SUBCUTANEOUS under the skin SUPINE lying on the back SUPPORTIVE CARE general medical care aimed at symptoms, not intended to improve or cure underlying disease SYMPTOMATIC having symptoms SYNDROME a condition characterized by a set of symptoms SYSTOLIC top number in blood pressure; pressure during active contraction of the heart

TERATOGENIC capable of causing malformations in a fetus (developing baby still inside the mother’s body) TESTES/TESTICLES male sex glands THROMBOSIS clotting THROMBUS blood clot TID three times a day TITRATION a method for deciding on the strength of a drug or solution; gradually increasing the dose T-LYMPHOCYTES type of white blood cells TOPICAL on the surface TOPICAL ANESTHETIC applied to a certain area of the skin and reducing pain only in the area to which applied TOXICITY side effects or undesirable effects of a drug or treatment TRANSDERMAL through the skin TRANSIENTLY temporarily TRAUMA injury; wound TREADMILL walking machine used to test heart function

UPTAKE absorbing and taking in of a substance by living tissue

VALVULOPLASTY plastic repair of a valve, especially a heart valve VARICES enlarged veins VASOSPASM narrowing of the blood vessels VECTOR a carrier that can transmit disease-causing microorganisms (germs and viruses) VENIPUNCTURE needle stick, blood draw, entering the skin with a needle VERTICAL TRANSMISSION spread of disease

WBC white blood cell

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COMMENTS

  1. Aldi: The Dark Horse Discounter

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    Abstract. In 2013, Aldi—the world's 8th largest retailer—planned to accelerate its US expansion. Aldi was a German-based hard discounter that sold a limited assortment of private-label groceries and household items in barebones stores. Despite its presence with 1200 stores in 32 states, Aldi was still relatively unknown in the US.

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    EMBA Pro Porter Value Chain Solution for Aldi: The Dark Horse Discounter case study In 2013, Aldi-the world's 8th largest retailer-planned to accelerate its US expansion. Aldi was a German-based hard discounter that sold a limited assortment of private-label groceries and household items in barebones stores.

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  11. Aldi's Generic Competitive Strategy & Growth Strategies

    Aldi's competitive strategy is cost leadership, which translates to low business costs and the ability to offer low and competitive selling prices. In Michael E. Porter's model, this generic competitive strategy requires that the discount supermarket chain maintain low operating costs. Competitive advantages based on low business costs mean ...

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    EMBA Pro VRIO / VRIN Analysis Solution for Aldi: The Dark Horse Discounter case study In 2013, Aldi-the world's 8th largest retailer-planned to accelerate its US expansion. Aldi was a German-based hard discounter that sold a limited assortment of private-label groceries and household items in barebones stores.

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    Connor Nelson Dr. Licht BUAD 485-B 20 February, 2022 A Dark Horse Solution Case Analysis When it comes to comparing Aldi to competitors such as Walmart, their business strategy and operating model is arguably the best thing going for them. With their focus being directly on creating high-quality products at low prices, many competitors are unable to reach the same level of effectiveness.

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    See Full PDFDownload PDF. Case study ALDI STRATEGIC MANAGEMENT f Case Study - ALDI Brief Overview of ALDI: In Essen Germany, Aldi was founded by 2 brothers Karl & Theo Albrecht in 1013. In 1960 they had 300 stores in Germany, they work hard and put all their efforts in making best retailer of grocery in Germany.

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    ALDI Strategy Case Study Analysis. Introduction. Business enterprises employ various initiatives to maximize returns and achieve competitive advantage over competitors in there respective industries (Kafalas, 1981). On this note, ALDI Australia has adopted unique strategic management principles that have helped it to gain and maintain ...

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