The Ripple Effect of Supermarket Wars: Aldi Is Changing the Markets in Many Countries

The purpose of this assignment is to take a look at competition in the marketplace and whether success is based on being a first mover. In this individual assignment, students will have the opportunity to practice valuable management skills including critical thinking, research comparisons, presentations, and discussing competitive actions.

Founded in 1913 in Essen, Germany, Aldi has grown into a global grocery store chain with locations in 19 countries and the United States. Specializing in low-cost foods and products, Aldis annual sales revenues in the United States are approximately $70 million. Because of the way it operates, Aldi is having a major effect on the retail food markets across countries, especially in the United Kingdom, United States, and Australia. The retail food industry has largely operated as a standard-cycle market and sold products with small margins. With Aldis growing power in the market, firms are forced to operate with even smaller margins and reduced profits or cut their costs in order to compete on prices.

How does Aldi understand its competitive rivalry?

How do you measure Aldi strategic versus tactical responses?

What are the first-mover benefits?

What are Aldis competitive dynamics?