Please respond to the following:
- Review the Aldi case study on page 169 of your textbook. Assess your satisfaction with Aldi and make recommendations about how the company could modify its business-level strategy to both increase your overall level of satisfaction and to attract new customers. Provide specific examples to support your response.
- Analyze the five business-level strategies discussed in Chapter 4 to 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 strategies (your choice). Explain your rationale.
Requirements: Three paragraphs
BOOK
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2019). Strategic Management: Concepts and Cases: Competitiveness and Globalization (13th Edition). Cengage Learning US. https://strayer.vitalsource.
Answer preview
The cost strategy level applies to ALDI since it assesses its business model to ensure that it sells its products at a low price compared to its competitors. By selling products at a lower price relative to its competitors, ALDI can create value for its customers (Hitt, Ireland, and Hoskisson, 2019). More customers are inclined to find a cheaper way to purchase groceries, ensuring that they can save and reduce expenses.
ALDI can also incorporate the differentiation strategy. This strategy entails providing the customers with unique products and services that are different from their competitors. ALDI can achieve a differentiation strategy by setting up their store differently from others and selling their own branded products at a lower price. By switching to the differentiation strategy,
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