The Aldi success story is a good reminder that strategy is as much about what your business is NOT going to do as much as what it is going to do. This idea is reflected in the Value Disciplines framework. The model assumes that in any competitive market, no brand can excel in all areas, and it is better to focus on excelling in one (whilst being acceptable in the others). Aldi excels in operational efficiency which allows it to sell quality products at low prices and still make a profit. The business model and brand are neatly aligned. What to learn more? Try asking Virtual Dan White. |