1. Describe and evaluate Aldis current strategy.

Aldis current strategy is definitely the focused low cost strategy. They do this by eliminating costs at every turn. For example they make consumers supply their own bags, they eliminate the need for cart return boys by making customers rent shopping carts for a quarter, limited selection of brands, and they typically only have one or two employees working the cash register. All of these features allow them to reduce over-all cost for them and pass some of the savings on to their customers. I believe that Aldi is targeting a niche market of price conscious consumers. They understand that it is difficult to compete with Walmart, so they offer a select group of products which they are able to sell at a low cost. Aldi does well at understanding their market niche and how to reduce costs in order to attract price-sensitive consumers. Overall I would say that Aldi’s strategy is working for them.

2. Which of the generic strategies would you use as an entry level firm in the beer industry?

I believe that there is only one generic strategy that could be used to penetrate the beer industry. Since the barriers to enter the market are so high (developed factories, many established brands, and an inability to produce mass quantitates at a lower cost than competitors) the only reasonable strategy would be narrow differentiation. An entry level beer manufacturer would have to make his product stand out in order to receive any attention in a saturated market. This strategy could target specific buyer segments by offering unique flavored beer. They could do this in a number of ways, either with flavorful dark ales or fruity flavored beers. This differentiation would entice new consumers to order or buy their product because everyone has tried a “insert generic beer provider here”, but they have not tried your