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Essay / Research Paper Abstract
This 6-page paper compares ALDI and Amazon Grocery, determines socio-economic trends when it comes to grocery shopping and explains which retailer is better positioned to take advantage of the trends. Bibliography lists 5 sources.
Page Count:
6 pages (~225 words per page)
File: AS43_MTamazaldi.doc
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Unformatted sample text from the term paper:
been asked to analyze major competitors. The two competitors in this case are newcomer Amazon Grocery and Aldis, a bricks-and-mortar grocery store that follows a very low cost generic strategy.
ALDI, which is short for "Albrecht Discounts" is headquartered in Germany, and offers deeply discounted prices on approximately 1,400 grocery items (compared to
the typical grocery store that offers about 30,000 branded items) (Biesada, 2012). ALDI is able to do this by stocking mainly private label brands and stacking them on pallets rather
than shelves, as well as by acquiring cheap land on city outskirts, building inexpensive warehouses and employing small staffs (Biesada, 2012). ALDI stores are also smaller in terms of square
footage. Amazon Grocery, on the other hand, doesnt have anything in the way of brick-and-mortar; much like its books and other products,
Amazon Grocery is an ecommerce site that offers dry goods (such as baking mixes, canned goods and diapers), and ships them to the buyers front door (Amazon Grocery, 2008). The
prices are higher than ALDI, though the Amazon Grocery website does offer ways to help discount those prices, one of which is through a subscription to its products. Demographic
and Socio-Cultural Trends Most discount retailers saw positive growth during the Great Recession and its aftermath and ALDI was no different. Middle class
shoppers flocked to ALDI stores to save money and continue to do so, if the companys expansion efforts are any indication (Biesada, 2012).
But an interesting growth trend is that of the so-called "dot-com" grocers. Though these have taken off mostly in the United Kingdom, virtual grocery stores (such as Amazon) are
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