Published by MBA Skool Team, Last Updated: April 26, 2020
SWOT analysis of ALDI analyses the brand by its strengths, weaknesses, opportunities & threats. In ALDI SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like ALDI to benchmark its business & performance as compared to the competitors. ALDI is one of the leading brands in the lifestyle and retail sector.
The article below lists the ALDI SWOT (Strengths, Weaknesses, Opportunities, Threats), top ALDI competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).
ALDI sells at affordable prices maintaining top quality products.
People looking out to purchase grocery at competitive prices.
Households and individuals
ALDI is a place which people reckon more with its private labels. Having strongly placed in Germany, it is now trying to firmly place itself internationally.
SWOT Analysis of ALDI
For ALDI, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position. Let us start the ALDI SWOT Analysis:
The strengths of ALDI looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of ALDI :
1. ALDI offers top quality products at affordable prices
2. Offers a wide variety of product portfolio at its stores
3. ALDI has a strong presence in Germany with over 2500 stores
4. Keeps the operating costs low which helps the company with better margins
5. Internationally ALDI has around 10,000 stores in Europe and other countries
6. Has operations in over 15 countries worldwide
7. More than 100,000 people are employed with ALDI worldwide
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the ALDI SWOT Analysis:
1. ALDI is still relatively small as compared to other brands
2. Hasn’t been able to impact globally as there are a few other chain stores
3. Sometimes allegedly regarded as a store for cheap and low quality items
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in ALDI SWOT Analysis:
1. ALDI retail needs to invest more in advertising to beat competition
2. Expanding into growing economies like Africa, Asia etc
3. Re-positioning itself as an affordable brand rather than a cheap-products company can boost its business
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of ALDI are as mentioned:
1. ALDI cannot cater to shoppers looking for a ‘complete shopping experience’
2. Other retailers who have thousands of different SKUs.
3. Private label brands of ALDI can be tossed away by established brands.
4. Government policies & taxation can affect business margins
There are several brands in the market which are competing for the same set of customers. Below are the top 10 competitors of ALDI:
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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