Explain the role of cost leadership and factors influencing retail operations.

International Business

Explain the role of cost leadership and factors influencing retail operations.

CASE STUDY (20 Marks)

Germany based, Albrecht Discount, abbreviated as Aldi, evolved over the years from a small grocery store into one of the leading hard discount stores. Karl and Theo, two brothers of the Albrecht family, were responsible for this huge transformation. They took charge of the grocery shop, which was earlier run by their mother to meet family requirements, in 1945. Albrecht Discount was incorporated in the year 1948. At that time, about 13 stores were in operation. Gradually, the store’s figures rose. In the same year, the first supermarket under the name ‘Aldi’ was started. Later, owing to a disagreement between the brothers, reportedly over the issue of selling cigarettes, Aldi was split into Aldi Nord and Aldi Süd. Though they operated in different geographic areas they maintained a common corporate identity. In 1967, Aldi entered Austria, its first overseas venture. It gradually expanded into countries like Belgium, Denmark, France, Luxembourg, The Netherlands, Portugal, Spain, Australia, the UK, Slovenia, Switzerland, and the US.

 

Answer the following question.

 

Q1. Discuss the importance of understanding shoppers’ behavior.

 

Q2. Explain the role of cost leadership and factors influencing retail operations.

Explain the role of cost leadership and factors influencing retail operations.

 

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