Cheap and Cheap, discount - ALDI

Innovation of social technologies has influenced the way that retail sector process their business for customer interact, and advertising. This is interesting that social technologies affected a board range of business procedure and retail sector has also relied on it to get more profits. In this blog, I will discuss an organization in retail sector and how does social technologies impact it.

ALDI

ALDI is one of the supermarket chains in Australia, but it was founded in Germany since 1946. ALDI is leading global discount retail which selling wide range of cheap product, such as food, beverages, and other inexpensive items. They supplies as much as cheapest product of highest possible quality and most of products are homemade within maximum 2 items from other brand.

Why ALDI's product get cheaper than other supermarket ?

Lean production

     - reduce the resource used in providing products
     - less labour for customer services
            sometimes one person in counter per store
     - less material
            plastic bags no provide, customer need to pay for bag or own bag carry

All of the concepts above, aldi reduce cost for their business and these saving is return to its customer to offer value for money as well.


Social technologies

Back to topic, ALDI has implemented the social technologies that other organization does, such as, Facebook, Google+, YouTube and Twitter. There are some example of using McKinsey value levers with social technologies clearly.


Leverage social to forecast and monitor 

Aldi acquire the customer thought by accessing the social technologies from their comments and respond to the consumers for their expectation. Also, it is one of the tactic that Aldi operate their retail business and customer loyalty. Provided wide range of customer thoughts and leverage the desire to run their activities for long term and short term in social technologies. Moreover, it has the chances to receive the similar information and recreate other new benefits for customer. As other customer comments, they wish a kind of product return to their store and the amount of people click likes will be a significant concept for decision making.




Generate and foster sales leads 

The traditional strategies that Aldi does in their attraction post for getting more volunteers to join  celebrating by providing communities a chance to win money and as much as volunteers involved, they will have a chance to get more customer as they advertise the activities as daily post or annually in social technologies used.



Reference

Business case study LLP.(2014).Competitive advantage through efficiency. Retrieved from http://businesscasestudies.co.uk/aldi/competitive-advantage-through-efficiency/lean-production.html#axzz3EDLKoVQD