Aldi’s Business Analysis

625 words | 3 page(s)

When it comes to those who are cost conscious at the grocery store, Aldi’s is the place to go for the grocery conscious individual(s). Aldi’s does not have any name brand food items and instead relies on the food items and companies that are somewhat unknown and unheard of. Aldi’s does this not only for those individuals who are cost conscious at the grocery store but also for their own company that helps their business grow. According to Ely Brown, “95% of the items are Aldi’s labels.” (Brown, 2008).

By Aldi having their own labels, this helps the economy and helps their business as well as their customers who come to them for the cheaper prices and cheaper groceries. According to Aldi’s official website, “Our flat management hierarchy allows leaders to know their people, stay informed, and promote an open flow of ideas and suggestions, which allows for effective decision making.” (Aldi’s, 2016). Aldi’s is helpful to consumers who may be strapped for money or are trying to save money for other necessities.
Some marginal benefits of Aldi’s include more consumers for their business and to help the economy as well. According to Fraser Sherman, “the marginal benefit is the extra profit you make from producing more goods, while marginal cost is the expense of producing them.” (Sherman, 2016). When it comes to marginal costs or marginal benefits, these two are somewhat similar but a few differences with both when it comes to the business or to the consumers. The marginal benefits is to benefit the consumer and the marginal cost is for the business that is involved with the consumers.

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For Aldi, the marginal benefits is for the individuals and the marginal cost is for the consumers who are being cost conscious of their money that is being spent towards groceries. This being said, the marginal benefits and the marginal costs are both very good for both the business and the consumer. Therefore the business involved would benefit better with the marginal costs and the consumer would benefit best from the marginal benefits. The marginal costs is for the benefit of the consumer as these consumers are looking for the best deals and the cheapest foods that will work best for that consumer.

The marginal benefits is for the business that is looking to keep their business up and running while offering the best deals for their consumers while helping their business grow and have more consumers coming to their place of business in hopes that the consumers will continue doing business with them while offering their best prices on their own labels for the cost conscious individual especially if those individuals need to take care of bills or other necessities as money is a bit tight these days which is why the consumers look for the best groceries or cheapest products.

In closing, When it comes to those who are cost conscious at the grocery store, Aldi’s is the place to go for the grocery conscious individual(s). Aldi’s does not have any name brand food items and instead relies on the food items and companies that are somewhat unknown and unheard of. Aldi’s does this not only for those individuals who are cost conscious at the grocery store but also for their own company that helps their business grow. While Aldi’s is also including marginal costs to benefit their business and also includes marginal benefits for their consumers.

    References
  • Brown, E. (2008). Grocery Shopping for the Cost-Conscious. Retrieved from
    http://abcnews.go.com/Business/ConsumerFinance/story?id=6322672&page=1
  • Aldis, (2016). Divisional Structure. Retrived from http://aldiuscareers.com/about-aldi/divisional-structure Fraser, S. (2015). Importance of Marginal Costs and Benefits. Retrieved from
    http://smallbusiness.chron.com/importance-marginal-costs-benefits-46506.html

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