Aldi is a no-frills grocery chain. It sells grocery staples right out of the crates and boxes with emphasis on low-priced, private-label brands. Aldi stores are typically about one-third the size of the traditional supermarket. By controlling expenses, Aldi customers can expect to save 30 to 50 percent on their grocery bills compared to Kroger customers. The chain targets bargain hunters who are willing to rent a cart and bag their own groceries. In terms of Porter's generic business strategy, Aldi uses a
________ strategy.

Question

Quizplus · Accepted Answer

Aldi's strategy is focused on cost, with an emphasis on offering low-priced products and controlling expenses. This falls under Porter's cost focus generic strategy.

Aldi Is a No-Frills Grocery Chain