Simple is one of advantage of Aldi’s, it doesn’t need any special machines, and product. Everything Aldi’s need for set up a supermarket is easy to buy, and the cost for set up a supermarket may even lower then set up a supermarket in Germany. If Aldi’s set up a supermarket in Germany, the raw martial and machine may buy from china.
Level: easy
3) Bargaining power of suppliers
Aldi’s is very successful in Germany even the Europe market, because Aldi know Germany the Europe market very well, he know what kind the stuff people need, and in one type stuff which brand the prefer to buy. Because Aldi has near 100 years marketing experience in Europe. But that is in western, china is most different. And most stuff Aldi sales that in make in Europe, but in China people are preferred to buy the china make. And I don’t think Aldi has a lot connecting with Chinese suppliers. Maybe Aldi has good connecting with Europe suppliers, but Aldi’s style is making the cost lower to affect the price lower. And ship the stuff from Europe will make high cost of shipment fee.
Level: medium
4) Bargaining power of buyers
China has near 1.4 billion populations. And most people are not rich, that is good for Aldi, because Aldi is low price style. And Chinese don’t care which supermarket they go, they focus on the price and quality, also they care about which supermarket is close to their home. So if Aldi has strong attraction for customer that will be no problem.
Level: high
5) Extent of rivalry among existing competitors
For this part we have to know what specialty Aldi has. Aldi is medium and small sized supermarket. It will open where. And supermarket is very simple, not many works, no many type goods, no change the pack, anything is simple. That makes the cost lower, and make the price lower. Aldi always open the supermarket near the uptown, or near the school. Its customer is student, poor people, old people, and housewife. And the goods in supermarket will not always be the same, every supermarket will change their goods, by seem difference people in difference place, people prefer to buy. So you see that in each Aldi supermarket has their special list of goods.
Level: easy
So in my opinion, I think Aldi and Wal-Mart are difference supermarket, people may go to Wal-Mart buy the goods for whole month, but they go to Aldi may just buy the goods for one week. The suggestion for block entrance into the Chinese supermarket is that, reference Aldi’s business model and create a new business model more suit for China. Wal-Mart has accumulate experience in China more than 15 years, it know more experience in this market. If Wal-Mart the small or medium size supermarket, it could do better than Aldi.
