Striving for Customer Benefit: The Case of Aldi

Kai-Ingo Voigt, Oana Buliga and Kathrin Michl
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Kai-Ingo Voigt: Friedrich-Alexander University Erlangen-Nürnberg
Oana Buliga: Friedrich-Alexander University Erlangen-Nürnberg
Kathrin Michl: Friedrich-Alexander University Erlangen-Nürnberg

Chapter 3 in Business Model Pioneers, 2017, pp 11-24 from Springer

Abstract: Abstract Aldi opened one of its first hard discount grocery stores in Germany in 1962. During the same year, Sam Walton inaugurated his first Wal-Mart in the United States. In spite of similarities, such as the attention towards low prices, the two companies were about to follow quite different strategies: while Wal-Mart focused on opening stores in rural communities and small towns, tapping into new markets as a sensible geographic expansion, Aldi much more thoroughly competed on price. The genuine discount business model did not start with Wal-Mart, but with Aldi—the latter being, beyond doubt, the pioneer among hard discounters in the retail industry. Hard discounters, also called limited-line stores, focus on selling a high volume of a limited and flat product range, concentrating on essentials and simplification, as well as on cost and price leadership.

Keywords: Business Model; Family Business; Private Label; Retail Industry; Price Leadership (search for similar items in EconPapers)
Date: 2017
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DOI: 10.1007/978-3-319-38845-8_3

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