- Aldi Supermarket - core competencies
- Cost-leadership strategy - Aldi stocks a limited number of goods, which are of high quality & offers them at competitive pricing. They attain their leadership status based on the prices which they offer to their consumers.
- Focus on own brands - "The Aldi website states that they focus on their own brands in order to remain independent, enabling them to avoid high marketing costs often associated with national brands and to set their own price, product and quality policies" (Bonn, Ingrid : 2)
- Small size stores - usually stand alone stores. Hence they are easier to find & located nearby to each other. Store design is simple & efficient. "I believe that with Aldi's entry into Australia, we can learn a lot on how to save logistics costs through "shelf management". Firstly, Aldi has already proven Australian consumers are not adverse to picking their goods themselves directly from pellets" (Chan, Amelia : 2)
- Low labor cost - Aldi does not keep casual staff. They have less staff. But the salaries paid are comparable. These contribute to higher margins for Aldi supermarket.
- No shopping bags. No people employed to collect trolleys.
- Minimal marketing. No separate marketing department. Stocks are based on customers' needs & demands as assessed by the employees & managers.
- Aldi Human Resource Management
The core competency of Aldi is its strict focus on price. There are various strategic measures undertaken by Aldi to ensure the same. These include the following:
Aldi does not have a human resource department. But it is still known as an employer of choice. "The German discount supermarket giant Aldi doesn't want to involve the National Union of Workers in their employee management. The company is paying above-market rates for managers and above-award rates for store and warehouse staff, and dealing with their employees very well." (Walker. Jacqui. 2003)
Aldi contributes its success to its employees. Aldi was the first grocery retailer to offer maternity leaves to its employees from April 2008 onwards. This was done because Aldi did not want to lose its employees. The Aldi retail assistants are exposed to a wide variety of tasks when they are in the store.
Aldi is the only supermarket which offers chairs to its retail assistants who are placed at the checkout counter. This shows how Aldi treats its employee as a valuable asset. "ALDI employees receive above-market rates, and working conditions are considered to be some of the best in the industry. ALDI also invests a great deal of time and money in the training and development of employees, assigning all new employees to one of its three purpose-built training centres to learn the ropes while being paid in full before they set foot in a store." (My Career)
Aldi is an employer who offers authority, empowerment as well as personal responsibility to its employees. They hold the bar extremely high for ethical as well as customer service standards. Aldi invests in its people. It has a strong policy of promoting from within. Hence are encouraged to apply for higher posts if they demonstrate the aptitude.
- Bonn, Ingrid. Aldi in Australia. Griffith University. (online). Available: http://www.johnwiley.com.au/highered/stratmgm/student-res/case-studies/008_smc_200507.pdf (9 Dec 2009)
- Chan, Amelia. LAA Development Awards - General Insights (online). Available: http://www.laa.asn.au/pdf/ldaarticles/AC6.pdf (9 Dec 2009)
- My Career. A Smarter Career with Aldi. (online). Available: http://content.mycareer.com.au/advice-research/employer-of-choice/retail/aldi.aspx (9 Dec 2009)
- Walker, Jacqui. Business, general. Business Review Weekly. 2003. B R W Media. (9 Dec 2009)