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 emphasis on low prices and cost control aligns with Porter's cost focus strategy, which involves offering a low-cost product or service to a narrow or specific market segment. Aldi's target market is bargain hunters who prioritize affordability over convenience or luxury, and the chain focuses on delivering the basics without added frills or features. This allows Aldi to keep costs low and pass those savings along to customers, creating a competitive advantage in the low-price market segment.

Aldi Is a No-Frills Grocery Chain