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How would you block Aldis entrance into the Chinese Supermarket?

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Introduction

Stoney Li Business homework Dec 8th How would you block Aldi's entrance into the Chinese Supermarket? For block Aldi's entrance into the Chinese supermarket, at first we have to think about what kind the advantages and shortcomings Aldi's have. And right here we could use the Porter's Five Forces Analysis to find out those points. 1) Threat of new entrants to an industry: Right now in China, government is easy to allow foreign company enter into china and make business. But after Wal-Mart and some foreign company enter into china, the competitive force in china is fierce. Level: medium. 2) Threat of substitutes Simple is one of advantage of Aldi's, it doesn't need any special machines, and product. ...read more.

Middle

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. ...read more.

Conclusion

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. ...read more.

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