Please respond to the following response whether you agree with the post or do not agree with the post. Or it can be a combination of both.
I feel that Aldi’s is definitely focused on a particular niche market. They have a strategic competitive focus and are not trying to be attractive to every shopper. Those shoppers that do like Aldi’s like them a lot and those that don’t like them really don’t like them and don’t mind paying more for the quality and/or the selections that they want and need. I personally have shopped at Aldi’s a few times and found it to be not my favorite store but I did find that many items were substantially lower (especially their fruits) than I could purchase at some other stores. One of the main reasons I did not shop there often was because it was not convenient or directly in my path but that has changed now since they have recently added a new location that is very convenient to my house so I can see myself going there more often. I actually like the products that they display in the middle of the store better than the groceries because each time I’ve been there, I always find something that I can use at the house at a very reasonable price. Most of the time I go there, I don’t have any bags in the car and end up having to find empty boxes in the store to put my groceries in. I actually like the idea of the depositing the quarter for the carts and then getting it back upon return and see this as a way to keep the cost down on needing an employee to go to the parking lot to gather carts throughout the day. Aldi’s has brought on some competition to some of the major grocery chains and are forcing them to rethink and reposition. Competition is good and often times it helps the consumers with better pricing and more choice options. Aldi’s could modify their business level strategy to offer on-line pick up options and include bags for the customers. They could also expand their shopping hours. I believe that these three things would increase my level of satisfaction and even attract some new customers.
Aldi’s has chosen the cost leadership business level strategy and has been very successful in implementing it and making it work in several different markets. They provide lower prices and acceptable quality to enough people to take a big share of the grocery market. Aldi’s has created a cost competitive advantage that many customers have found to be acceptable and of great value even though they sell a lot of their own brand products and not very many name brand products. I see Aldi’s as a wonderful competitor and a welcome choice for many markets and families. The only other strategy that I see that would maybe even possibly work for them would be the focus strategy because they are not trying to get every shopper just the ones that can find value in their products and services. Just like they have their own product line of foods, they could come up with their own line of some other type of product such as cookware, bath products or some type of sports products and this would provide them with another segmented product line and may attract some new customers also. I do not know if they would be interested in something like that or even if would be beneficial and cost effective for them to do that. As with most successful companies, in order to remain competitive, they have to remain creative and innovative in order to keep up with the changing times so they do have to come up with some ways to stay relevant and keep attracting more customers.
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