Final Exam Questions Course 62.601 (Customers and Markets) Fall 2014 / Professor Tao (Tony) Gao Question 1: I recommend CDT to introduce accessories for music, movies and video game fans as a new category of products. These accessories include posters, clothes, cups, and so on. These accessories related to a specific movie or famous star, for instance, a T-shirt with a theme of Star Wars. As CDT is a store for music lover and movie lover, this new category can attract these customers’ attention
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take on opponents whose strategies, strengths, and weaknesses resemble their own. Their obsession with familiar rivals, however, has blinded them to threats from disruptive, low-cost competitors. Successful price warriors, such as the German retailer Aldi, are changing the nature of competition by employing several tactics: focusing on just one or a few consumer segments, delivering the basic product or providing one benefit better than rivals do, and backing low prices with superefficient operations
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The earliest roots of ALDI trace back to 1913, when the mother of Karl and Theo Albrecht opened a small store in a suburb of Essen, Germany. Their father was employed as a miner and later as a baker’s assistant. Karl Albrecht was born in 1920, Theo Albrecht in 1922. Theo Albrecht completed an apprenticeship in his mother’s store, while Karl Albrecht worked in a delicatessen. Karl Albrecht served in the German Army during World War II. In 1946, the brothers took over their mother’s business and soon
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Introduction ALDI is a German Based Discount Supermarket Chain. Albrecht Discount is the full form of ALDI. The Supermarket Chain consists of two main groups. ALDINORD and ALDI SUB. However both groups are independent in their operations and work within the specific market grounds. The individual groups were originally owned and managed by brothers Karl Albrecht and Theo Albrecht. The company has transformed from a small business to one of the most successful and valuable retail business chain with
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How Germany Busted Wal-Mart’s Bubble Reasons and lessons learned behind Wal-Mart’s failed attempt into Germany * Founder Sam Walton opened the first store in 1962 and is now the world’s largest retailer with more than 10,000 retail units under 69 different banners in 27 countries. * 2.2 million employees serving 200 million customers and members every week. * Net sales for 2012 increased 5.9% to $443.9 billion, $125 billion derived from international sales. * Wal-Mart’s 2012 Annual
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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
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Case Study: Trader Joe’s In 1958, Trader Joe’s first began as a small convenience store named Pronto Markets. Trader Joe’s didn’t receive their Trader Joe’s name until 1967 when they opened up a store in Pasadena. Mr. Coulombe had transferred his stores into an oasis of value and started putting innovative, hard-to-find foods in the Trader Joe’s name. By doing this Trader Joe’s was able to cut costs and save you money. In 1979, Mr. Coulombe sold the Trader Joe’s chain to the Albrecht’s, own
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Case Study #1 – Trader Joe’s: Managing Less with More Due Date: No later than 9:40 AM Thursday, February 7, 2013 Remember the importance of deadlines, both in and out of class. Please do not ask to hand in the assignment past the due date. If you miss this one for some reason, there will be another. Thanks! ------------------------------------------------- Directions (use this as a checklist): * Read Chapter 1 thoroughly * Read both cases. One is about Trader Joe’s and the other
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Bad decision making: The German food chain LIDL in Norway LIDL is a global discount supermarket chain from Germany. Since 1988 the company expanded to 21 states e.g. Italy, France, Great Britain, Spain and many Eastern European countries. In 2004 LIDL entered the Norwegian marked. Norway at this point had no real low price food market and the LIDL managers were sure of having a big advantage using their low price strategy and without having competitors in that field. After only four years the
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Brand position&perception Brand position Aldi is one of the largest retailers in Germany, its stated goal was to provided customer regularly buy products with highest quality and guaranteed low prices. It was entered Australia in 2001 and was considered to be one of the pioneers of the hard discounter concept-a format characterized by a high turnover on a narrow range of grocery items in a small space. In addition, aldi offered a limited assortment of around 700 products lines as against the
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