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Write a 7 pages paper on the success of aldi. Aldi has become the supermarket of choice for most shoppers in the United Kingdom that have immensely contributed to its profits shooting up almost 32 percent year-on-year and it is opening of the 500th store with fifty more sets 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 manufacturers. Just like any other business, Aldi is also affected by external influences in the running of its business affairs, which has an effect on its performance.
As already stated half, the United Kingdom’s 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. Market research specialist Kantar state that the middle class and the upper class have made Aldi as the store of choice with sales in the period under study exceeding a percentage of 30% compared to a similar period in the previous year. Coupled with external factors such as recession, most shoppers would rather shop at Aldi due to the reduced prices of goods as compared to its competitors.
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