MGT 30220 Study Guide - Final Guide: Aldi, Keiretsu, Whole Foods Market
Strategic Management Study Guide
• Aldi Takeaways:
o 1. Aldi operates in the same broad industry as Whole Foods, but seeks to fulfill
significantly different customer needs
o 2. Aldi seeks a COST-BASED advantage
▪ demonstrates a number of mutually-reinforcing strategic choices that
consistently drive costs out of the system, thus resulting in lower prices
o 3. Important tradeoffs
▪ limited assortment, heavy reliance on private label, non-trivial amounts
of customer education
Corporate Strategy:
• Keiretsu:
o Japanese term for a business group, characterized by interlocking shareholdings
and a propensity toward collective decision making
• Corporate Strategy:
o focuses on the product scope and geographic scope of the firm
▪ what businesses should it be in?
o An approach for creating value and competitive advantage through participation
in several different industries and markets
▪ entails competing in a core industry or business and also operating in
adjacent businesses or markets
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