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Amazon and Aldi's strategy

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I am a marketing executive at a grocery store chain and have been asked by my supervisor to evaluate the positioning of two of my major competitors, relative newcomer Amazon Grocery and ALDI's. Amazon Grocery has over 15,000 non-perishable items, half of which are focused on the organic and healthier food-related products market while ALDI's has been shaped as the highest quality food-related products at the lowest possible price. I have to respond to the following questions:

1. Think about demographic and socio-cultural trends and changes and explain how each organization's interpretation of these trends and changes has affected its choice of strategy?

2. Is their strategy affected by the amount of advertising they do on television and the internet?

3. Which organization do you think is currently positioned better and why?

4. What strategy would be recommended for the organization chosen based on recent trends and changes?

5. How can these strategies improve that organization's image as a "corporate citizen" within the community?

Please cite all references in APA format.

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Solution Summary

2. Is their strategy affected by the amount of advertising they do on television and the internet?

3. Which organization do you think is currently positioned better and why?

4. What strategy would be recommended for the organization chosen based on recent trends and changes?

5. How can these strategies improve that organization's image as a "corporate citizen" within the community?

Solution Preview

1. Think about demographic and socio-cultural trends and changes and explain how each organization's interpretation of these trends and changes has affected its choice of strategy?

One of the major change happening in the society is increasing use of internet by single families where both husband and wife are working and do not have time to visit the supermarket to purchase their groceries. Amazon grocery is trying to tap on this growing trend related to use of e-commerce for day to day shopping and trying to capture market share among busy professionals that prefer to buy over the web.

Similarly, Aldi is a discount supermarket chain and aims to capitalize on its low cost strategy by providing high quality products at competitive prices to consumers in today's recessionary times. Consumers are looking to get more value for their spending in today's recessionary times and looking for best bargain for high quality food products and Aldi is just trying to address these needs via its strategy.

2. Is their strategy ...

Solution provided by:
Sheetal Jain, PGDM
Education
  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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