Aldi Situation Analysis Essay

Introduction
According to Dunford, Palmer and Benveniste (2005), the Australian grocery is claimed to be one of the importance industry in Australia, which approximately 76 percent of its market is taken by Coles and Woolworth. However, in 2001, ALDI which is the Germany-based retail company, has explored into the Australia supermarket industry and it can reach more than 400 stores. ALDI stores (2014) demonstrate that ALDI provides a new and higher quality standard in private-label groceries to the customer and focuses on exceptional quality product but at prices significantly lower. ALDI had been successful establishment in Australia since it arrived.
The purpose of this report is to evaluate the strategic management of ALDI’s expansion in Australia by analysing its situation analysis through PESTEL model. After that considering the fit between ALDI strategies and its context, and followed by analysing the fit between the current

PESTEL analysis is stated to describe a framework of macro-environmental factor by Gupta (2013). It consists of 6 elements which influence the performance of the organizations: Political, Economic, Social, Technological, Environment, and Legal. Bajcetic and Srdjevic (2012) support that PESTEL analysis is useful in strategic planning process and can illustrate the positive and negative impact to the organization.
Allen et al (2006) demonstrates that ALDI offers product and service to a small range of customers as the best price value and lowest price in the market. These lead to create its competitive advantages as a great competitor in its industry and can extent its market. In order to analyze ALDI’s expansion strategies, PESTEL analysis is a tool in this report to illustrate the external forces which dramatically affect ALDI’s