How and Why Aldi Could Succeed in Its Invasion?

两个company的成功和失败的点

分为4各方面来写，一个方面要占一页纸

1. The three decision phases in a supply chain (i.e., how they run their supply chains);  
2. The push/pull view of supply chain process (i.e., how they structure their supply chain);  
3. Implied demand uncertainty, supply chain capabilities, strategic fit, and scope of strategic fit (i.e., how they ensure their successes); and  
4. The use of the various supply chain drivers (i.e., facilities, inventory, transportation, information, sourcing, and pricing) to achieve supply chain objectives (i.e., efficiency and responsiveness).  

(1) how and why ALDI could succeed in its invasion

(2) what Woolworths should improve in order to maintain its competitive position?

Note：

1. history of development,
2. challenges and issues
3. different approaches

Tools：push/pull view, demand uncertainty spectrum, cost-responsiveness spectrum, and zone of strategic fit,

Executive Summary

Summary of the Cases

Critical Success or Failure Factors Identified

respective success or failure of ALDI and Woolworths

1. respective success of ALDI and Woolworths
2. failure of ALDI and Woolworths

Answers to the Case Question

1. area

• The three decision phases in a supply chain

• SC strategy or design
• SC planning
• SC operation

• The push/pull view of supply chain process

• processes in a supply chain are divided into two categories depending on whether they are executed in response to a customer order (pull) or in anticipation of a customer order (push).

[pic 1]

• Implied demand uncertainty, supply chain capabilities, strategic fit, and scope of strategic fit
• The use of the various supply chain driver

(1) how and why ALDI could succeed in its invasion

(2) what Woolworths should improve in order to maintain its competitive position?

Executive Summary

This paper analyzes the supply chain of these two companies Woolworths and Aldi from four different dimensions including three decision phrases of supply chain, pull/push view process, the strategy fit and the drivers in their supply chain to find the key factors makes the supermarkets be succeed. Moreover, we can know how these two companies run and structure their supply chain, how they ensure their success and how to guarantee the efficiency and responsiveness. In addition, as a new strong competitor, the reason why Aldi is low-priced and why it gains such big success will be discussed, and the advice to8 Woolworths to get rid of the current predicament will be given.

1 Summary of the Cases

Woolworths is the Australia's largest retail supermarket, but recently it has been threatened by new competitors such as Aldi. The critical cause is that supermarkets such as Aldi have more price advantages. In order to reach lower price, both companies make good use of their supply chain management, from decision and strategy, planning to daily operation to achieve strategy fit. Due to excellent supply chain management and operation, Aldi has

2 Critical Success or Failure Factors Identified

1. Respective success of ALDI and Woolworths

1. ALDI

Aldi has achieved rapid expansion in the domestic and foreign markets after its success in German. Its domestic chain stores have reached more than 3,600 while there are more than 1,000 stores in foreign market. At present, Aldi's annual revenue exceeds 30 billion dollars, and it has become Germany's largest food chain retailer. Many factors contribute to ALDI’s success, we can list some of these factors as follows:

• Never operates in debt, and all store expansions are carried out with the profits already generated
• Long-term insistence on "everyday low price"
• Deeply cultivate Aldi’s own brand, select products, and shape the product strength
• Unique space, shelf, and personnel management model for cost control and efficiency
• A hundred years of self-owned brand supply chain construction to achieve high quality and efficiency

1. Woolworths

• The high freshness of the food and the short inventory turnover
• Superior quality management system, guaranteeing the quality and authenticity of goods from the source of supply
• With a high-quality supply chain system and a well-established distribution center, the suppliers basically send the goods to the distribution center, which is then distributed to the supermarkets by Woolworths' own transportation department.

1. Failure of ALDI and Woolworths

1. ALDI

• Packaging involves trademark infringement
• Most of the products are cheap, if the quality control is not good, consumers will question the quality

1. Woolworths

• The profits of Australian food fell sharply
• The impact of e-commerce and the low price threat of Aldi
• Woolworths has been lacking a visionary leader, Cheap Cheap push gained early momentum, it stalled in part because of one fundamental problem – it wasn’t based on a customer reality.
• Woolworths has failed to sufficiently invest in store refurbishments with sources

1. Analyze the Supply Chain Management of the Two Companies

1. The three decision phases in a supply chain

1. Supply chain strategy or design

接下来几年的结构，资源如何分配，每个阶段的流程，供应链功能分区，选址和产能，仓库设施，每个地区不同产品和储存，运输方式，信息系统的选择

In 1961, Aldi was divided into North Aldi and South Aldi. In addition to operating in Germany, North Aldi established 8 branches in Western Europe, Northern Europe and Eastern Europe. On the other hand, South Aldi is responsible for global expansion. In Asia, Aldi established a purchasing office in Hong Kong in 2015 and landed in Tmall International as a cross-border e-commerce company in 2017. Although Aldi has a different marketing model in each market, the principles of supply chain management are the same.

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