How and Why Aldi Could Succeed in Its Invasion?
Essay Preview: How and Why Aldi Could Succeed in Its Invasion?
Report this essay
两个company的成功和失败的点分为4各方面来写，一个方面要占一页纸The three decision phases in a supply chain (i.e., how they run their supply chains); The push/pull view of supply chain process (i.e., how they structure their supply chain); Implied demand uncertainty, supply chain capabilities, strategic fit, and scope of strategic fit (i.e., how they ensure their successes); and The use of the various supply chain drivers (i.e., facilities, inventory, transportation, information, sourcing, and pricing) to achieve supply chain objectives (i.e., efficiency and responsiveness). (1) how and why ALDI could succeed in its invasion (2) what Woolworths should improve in order to maintain its competitive position? Note：history of development, challenges and issues different approaches Tools：push/pull view, demand uncertainty spectrum, cost-responsiveness spectrum, and zone of strategic fit, Executive Summary Summary of the Cases Critical Success or Failure Factors Identified respective success or failure of ALDI and Woolworths respective success of ALDI and Woolworthsfailure of ALDI and WoolworthsAnswers to the Case Question areaThe three decision phases in a supply chainSC strategy or designSC planningSC operationThe push/pull view of supply chain processprocesses in a supply chain are divided into two categories depending on whether they are executed in response to a customer order (pull) or in anticipation of a customer order (push). [pic 1]Implied demand uncertainty, supply chain capabilities, strategic fit, and scope of strategic fitThe use of the various supply chain driver(1) how and why ALDI could succeed in its invasion (2) what Woolworths should improve in order to maintain its competitive position? Executive SummaryThis paper analyzes the supply chain of these two companies Woolworths and Aldi from four different dimensions including three decision phrases of supply chain, pull/push view process, the strategy fit and the drivers in their supply chain to find the key factors makes the supermarkets be succeed. Moreover, we can know how these two companies run and structure their supply chain, how they ensure their success and how to guarantee the efficiency and responsiveness. In addition, as a new strong competitor, the reason why Aldi is low-priced and why it gains such big success will be discussed, and the advice to8 Woolworths to get rid of the current predicament will be given.
1 Summary of the CasesWoolworths is the Australias largest retail supermarket, but recently it has been threatened by new competitors such as Aldi. The critical cause is that supermarkets such as Aldi have more price advantages. In order to reach lower price, both companies make good use of their supply chain management, from decision and strategy, planning to daily operation to achieve strategy fit. Due to excellent supply chain management and operation, Aldi has2 Critical Success or Failure Factors IdentifiedRespective success of ALDI and WoolworthsALDIAldi has achieved rapid expansion in the domestic and foreign markets after its success in German. Its domestic chain stores have reached more than 3,600 while there are more than 1,000 stores in foreign market. At present, Aldis annual revenue exceeds 30 billion dollars, and it has become Germanys largest food chain retailer. Many factors contribute to ALDI’s success, we can list some of these factors as follows:Never operates in debt, and all store expansions are carried out with the profits already generatedLong-term insistence on “everyday low price”Deeply cultivate Aldi’s own brand, select products, and shape the product strengthUnique space, shelf, and personnel management model for cost control and efficiencyA hundred years of self-owned brand supply chain construction to achieve high quality and efficiencyWoolworthsThe high freshness of the food and the short inventory turnover Superior quality management system, guaranteeing the quality and authenticity of goods from the source of supplyWith a high-quality supply chain system and a well-established distribution center, the suppliers basically send the goods to the distribution center, which is then distributed to the supermarkets by Woolworths own transportation department.Failure of ALDI and WoolworthsALDIPackaging involves trademark infringementMost of the products are cheap, if the quality control is not good, consumers will question the qualityWoolworthsThe profits of Australian food fell sharplyThe impact of e-commerce and the low price threat of AldiWoolworths has been lacking a visionary leader, Cheap Cheap push gained early momentum, it stalled in part because of one fundamental problem – it wasn’t based on a customer reality.Woolworths has failed to sufficiently invest in store refurbishments with sourcesAnalyze the Supply Chain Management of the Two CompaniesThe three decision phases in a supply chainSupply chain strategy or design接下来几年的结构，资源如何分配，每个阶段的流程，供应链功能分区，选址和产能，仓库设施，每个地区不同产品和储存，运输方式，信息系统的选择In 1961, Aldi was divided into North Aldi and South Aldi. In addition to operating in Germany, North Aldi established 8 branches in Western Europe, Northern Europe and Eastern Europe. On the other hand, South Aldi is responsible for global expansion. In Asia, Aldi established a purchasing office in Hong Kong in 2015 and landed in Tmall International as a cross-border e-commerce company in 2017. Although Aldi has a different marketing model in each market, the principles of supply chain management are the same.