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Copy of ALDI
Transcript of Copy of ALDI
Mariya Noskova Agenda Company Background Macro – Environmental
PESTEL Analysis The PESTEL analysis investigated the most important macro environmental factors that ALDI has to consider. The main factors that need attention are the political trends such as carbon tax and socio-cultural trends, concerns and health preferences. Technological trends also should be taken into account, mainly transportation, and economical factors including financial crises and unemployment rates. Other valuable trends are environmental, such as recycling and environmental sustainability and legal trends, including trade agreements, and industrial laws and regulations. All these factors has a significant impact on food industry, however, food is the first class necessity for human beings, therefore, considering any changes within macro environment, food companies will continue to develop and expand their businesses within the Australian market.
PESTEL Analysis - is the method to define to what extent different factors may influence on organization, achievement of goals. This Analysis includes such dimensions as political, environmental, social, technological, economical and legal/global. Overview and Summary of our Reseach
Industry analysis (PESTEL, P5F, KSF)
Company analysis (SWOT, HRM, + Analysis of Competitor)
Key Issues and Implementation
Conclusion Today’s situation
Implementation Overview and Summary History
Karl and Theo Albrecht – Albrecht Discount
In Australia since 2001 – 200 stores17 countries – more than 7000 stores
“Incredible value every day”
Customer value Brand Image:Positive
Technology:Refrigeration, Transport & Storage
Competitive Advantage: Technology Brand Image:Positive
Competitive Advantage: Supplier Relatioship Brand Image:Neutral
Technology:Minimum Technology Available
Competitive Advantage: Low Prices The main KSF in the food industry:
2.Positive and well know brand image
3.High level of concern about customers
4.Availability of local resources Key Success Factors Analysis of Competitors Human Resource Management Recruitment
Development & Retainment
Balanced work & lifestyle
Qualification Size & location
Innovation & development
Resources & Suppliers
New in industry
Internal SWOT Analysis Strengths
Minimum of Company's Expenditures
Positive Reputation within Suppliers
Positive relationship between Price and Quality External Expand the Australian market
Take import taxes
New technology such as RFID and iPhone applications
Increase brand loyalty
Offer lower prices than competitors
Create well developed human resource management
Better offer of value to the customers Competitive position
Brand image & Customer loyalty
Variety Threats Opportunities Issues
ALDI's problematical areas within organizational process:
Low Technological Development
Brand Image and Customer Loyalty
Low Customer Service Outline Carbon tax
Import, shipping and transportation
Carbon tax will affect the industry
Organic food industry grows 35% per year
Demand exceeds supply
Less than 3% of the total food industry is organic
Packaging of food, on-line advertising PESTEL Analysis Political trends
carbon tax, import and export regulations, lowered import tax and tariffs.
RFID, Iphone apps, transport inventions.
Socio cultural trends
brand loyalty, health trends, organic food, environmental awareness. Driving Forces Porters Five Forces Threats of New Entrants – Low
Market share concentration is very high (80% on the big three).
New entrants hindered by the significant capital outlay.
Price is the main competition, difficult for competitors to establish in Australia. Bargaining power of suppliers – Medium
Suppliers ability to influence cost, availability and quality of input materials to firms
Bargaining Power of Suppliers Threats of New Entrants
Market share food stores = 52%
Market share fast foods and restaurants = 35%
Substantial growth of fast food chains and restaurant openings in Australia Threats of Substitute Products and/or Services High – most important is slow industry growth
Woolworths 40%, coles 30%, IGA 7%, ALDI 3%
Higher competiveness for consumer dependability Rivalry Among Competing Sellers Low Technological Development According to PESTEL Analysis:
New Technology is a major driving force in the food industry.
Referring to the Analysis of Competitors:
ALDI has lower technological development than Coles and Woolworths. Brand Image and Customer Loyalty ALDI changes product brands between one to five years for the purpose of keeping customer-shopping prices down.
It is beneficial for price-concerned customers
BUT: it creats difficulties for customers to trust a new brand every couple of years. Low Customer Service ALDI supermarkets have only 3 employers within typical 600-square-metre store.
According to different ALDI reviews customers are not satisfied by customer service: “checking out takes ages, it is slow”.
Consequently, ALDI’s policy of minimum workers for minimization of expenses within work environment does not work properly, because it is not enough for satisfactory customer service. Technology
Implementation of Environmental Scanning.
Establishment of Benchmarking.
Investment in RFID (Radio Frequency Identification)
Introduction of Self-Service facilities.
Community Website (ex. Online blog section) Outline Recommendations of Implementation Items/Plans:
Implementation of Environmental Scanning ALDI is requered to use Environmental Scanning to not miss out any major technological trends.
Environmental scanning will be done by top-level management. Within Food industry, it is easy to look at what technology the major competitors are using and benchmark.
For example, as stated in the Competitor Analysis, Woolworths are using a lot of new Technology, and ALDI can most definitely learn from them.
Benchmarking is top-level management.
Establishment of Benchmarking Benchmarking is the process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries. Investment in RFID (Radio Frequency Identification) Investment in RFID technology will lead to the faster customer service and more efficient processes within the store environment.
Transportation, inventory and retail will be more effective. ALDI need to have a great connection with its customers.
A biyearly ‘cook off’ is the most effective way to achieve strong relationships with customers.
Hiring a hall or public park, a chef, and cooking materials will allow ALDI to show off what they sell and how it can be used. Food Promotion Introduction of Self-Service Facilities Establishment of self-checkout mashines will improve ALDI’s customer service.
Implementation of self-scanning shopping will be benefit both retailers and customers.
Self-checkout decreases the nesessity for manned checkouts, thus reducing labourosts.
The typical four-lane self-checkout mashine costs about $125.000 AUD. The instalation of self-checkout fasilities does not cost much.
Community Website Establishment of a community blog section on ALDI website.
Customers can share recipes, even if its just one item used from ALDI store.
Utilising this blog section, customers will be able to provide constructive feedback for ALDI supermarkets or express their future expectations and food preferences of ALDI's product range. CONCLUSION Economic power is high
Easily change chains
Customers loyal to brands Bargaining power of buyers Bargaining power of buyers - Medium/High Thank you for your Attention References ALDI. (2011). Official website. Retrieved from http://www.aldi.com.au Woolworths. (2011). Home page. Retrieved from http://www.woolworths.com.au/wps/wcm/connect/website/woolworths/prices/specials+of+the+weekWoolworths. (2011). Our story. Retrieved from http://www.woolworths.com.au/wps/wcm/connect/Website/Woolworths/About+Us/Our-Story/Woolworths. (2011). Woolworths today. Retrieved from http://www.woolworths.com.au/wps/wcm/connect/website/woolworths/about+us/our-story/woolworths+todayWoolworths Limited. (2008, June). ACCC inquiry into the competitiveness of retail prices for standard groceries. Retrieved from http://www.accc.gov.au/content/item.phtml?itemId= 832479& nodeId=24af9ee5e11a2565beef1c37e21b9554&fn=233%20(late%2018%20 June)%20Woolworths-%20market%20definition%20and%20market%20concentration% 20(7%20pages).pdfZelman. K. (2011). Top 10 food trends for 2008. Retrieved from http://www.medicinenet.com/script/main/art.asp?articlekey=86520 Australian Trade Commission. (2011). Food and beverage: unique, diverse, clean and green. Retrieved from http://www.austrade.gov.au/Buy/Australian-Industry-Carroll, J. (2011) Food industry trends 2011 report from a keynote. http://www.jimcarroll.com/2011/06/food-industry-trends-2011-report-from-a-keynote/Carson, V. (2008, October). The Sydney Morning Herald. Retrieved 11 November 2011, from Less choice as Coles culls its product lines: http://www.smh.com.au/business/less-choice-as-coles-culls-its-product-lines-20081014-50mm.htmlChapman. A. (2011). SWOT analysis. Retrieved from Businessballs: http://www. businessballs.com/swotanalysisfreetemplate.htmChatman. K. (2011). Snack Food Industry's Success Factors. Retrieved from http://www.gr8ideas.com.au/invention-development-advice/getting-your-invention-sold/part-d-sellingdistribution-a-licensing/3032-snack-food-industrys-success-factorsHistory.aspxColes. (2011). Caring for our communities. Retrieved from http://www.coles.com.au/ About-Coles/Community.aspx8HumanUseExperience. (2011) Supermarket self-Checkout kiosk. Retrieved from http://web.mit.edu/2.744/www/Project/Assignments/humanUse/lynette/2-About%20the%20machine.htmlIFT. (2011). Packaging. Retrieved from http://www.ift.org/divisions/food_pack /newsevents/1206packagingresearch.pdfIndustry Center. (2011). ALDI group company profile. Retrieved from http://biz.yahoo.com/ic/54/54910.htmlKermond, C. (2011). Woolies and Coles merge into one for the customer. Retrieved from http://www.smh.com.au/business/woolies-and-coles-merge-into-one-for-the-customer-20110815-1iuur.html Threats of Substitute Products and/or Services - Medium