Aldi's Resources & Capabilities Essay

Words: 1103
Pages: 5

Prepared by AE-2011
Resources and Capabilities
1.1 Financial Resources & Capabilities During the period from 2007 to 2009 total sales went up 8.13% which is a strong performance. Most contribution is driving from domestic sales (i.e. German operations). 2007 Turnover (€m) Total turnover growth (%) Grocery Sales Density (euro/sqm/wk) Number of Stores Sales Area (‘000 sqm) 41,818 +3.9 2008 45,183 +8.0 2009 45,221 +0.1




8,515 6,645

9,065 7,153

9,430 7,499

ALDI financial resources seem to be strong since that the group is operating without loans from banks and long-term liabilities over years. Increased sales in 2010 lead to the conclusion that ALDI’s financial position will continue to be strong. The
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Customers value especially their high quality products at low prices {Welt Online, 2008}. ALDI has high quality standards that all suppliers have to comply with. Food and non-food products have to go through tests at ALDI’s quality management department and are parallel checked at external laboratories. Their customer service in store was ranked high. However, service in general scored poorly. ALDI and its products comply with the following standards ILO (International Laour Organisation) GlobalCompact UN BSCI (Business Social Compliance Initiative) EG-Őko National organic logo QS system GloalGAP {ALDI Sud Online, 2008}

Even though, ALDI is not investing in an appealing store design and fancy extras to create a great shopping experience, they are still customer’s number one choice. Over the year they build up a strong reputation of high quality products at low prices that consumers can rely on. Loyalty to and trust in the brand is strong {Nielsen, 2008}. ALDI is working is working closely with its suppliers to maintain high quality standards. 1.5 Unique Resources ALDI follows the same clear and simple strategy over years-still with increasing success. The company has gained great knowledge from experience on how to operate in a cost efficient manner concerning logistics, human resources, store design, energy consumption and supplier relations. Their strong reputation among consumers for low