Strategic analysis Report

I . Background

The retail industry in Australia is considered as one of pillars of its economy . The industry has improved immensely as the players in the market have increased and the variety of commodities has expanded immensely . At present , the industry is populated by companies that range from multinationals to small and medium scale . Among the players , ALDI Australia is considered as a major player in the industry . The firm has expanded from a single foreign branch to a major retail chain . It operates in the main markets of Australia and in

other regions across the country

ALDI was taken from the original name of the company which was Albrecht Discount . Before expanding to Australia , ALDI established its presence in Germany Gradually , the company operations stretched to other locations across the world . ALDI is regarded as one of the biggest supermarket chain worldwide . In Australia , ALDI has approximately 160 retail chains . This number is expected to grow as ALDI continues to be aggressive in the industry . Despite strong competition , ALDI Australia has managed to establish its own identity and has already controlled a significant portion of the market

It is imperative to study the current situation within ALDI Australia The outside environment of the company is another important aspect to investigate . The succeeding discussion will focus on the capacity of ALDI to dominate the market . This requires evaluation of the capacity of ALDI and the external aspects that can affect its performance . The strategies used by ALDI have been working so far . But there are still rooms for improvements that needed to be manifested

II . The External Environment

Porter (1979 ) introduced the concept of five forces that seeks to analyse the competition in an industry . This serves as an effective tool used in creating a picture of the retail industry . Based on the model there are four forces that have to be assessed to determine the condition of the fifth force (McGahan , 2004 . These interact with other to determine the overall condition of the market . The five forces model is critical especially to retail firms . The level of competition in the industry is high . Hence it is imperative for ALDI Australia to appraise the situation of the industry

The threat of new entrants shows the possible repercussions of the openness of the industry which is high in the industry . The current condition of the industry coupled by the continuous increase in demand justifies the viability of the industry as an investment hub for new entrants . New entrants , however , have to consider the barriers that can affect their success . Australia is a major market and houses consumers with high buying power . This means that the opportunity for retailers to operate is high . In addition , demand for consumer products has remained high

The emergence and threat of substitutes shows the low tendency , but suddenly emerging alternative retail firms . The conventional form of retail includes the shops and stores located in strategic areas . With the advent of technology , several forms of retailing have...