Management and Business Model

Topics: Management, Strategic management, Business Pages: 3 (750 words) Published: May 11, 2013
Home assignment
Case study:
Business models-Aldi

Q: Description of the business model of Aldi by using the business model canvas
Usually the first thing coming on our minds when the word model is mentioned are models of real objects in engineering, architecture and etc. But the point with the business model is to gain understanding of the ``big picture``. The business model canvas designed by Dr. Alexander Osterwalder provides you with this knowledge and also with visualizing the same. Aldi functions on an every-day basis. There you would find products you consume every day. Their suppliers (key suppliers) sell items under Aldi`s labels which favors their negotiating position for purchasing the stocks by lower price. Regarding key suppliers and key partners, as I am implementing the business model of Aldi in UK, their partners there are the British farmers when it comes to meat, and all of those suppliers have to pass a high quality testing. In fact, all of the Aldi`s suppliers have to pass this high quality standards, otherwise they lose them as a company. So starting by this they show their commitment to their customers and begin with the value proposition. Initiating the value ``chain`` of the canvas, I would start by defining the one. The value propositions are bundles of products that create a value for the customers. The company satisfies a need or solves a problem for the customer with this crucial segment. Aldi makes the job done. There aren`t any fancy shelves where the customer can lose him/herself. Everything is simple arranged and by this not only the company increases the usability and accessibility to the products but also saves the consumer’s time. According to me this represents an extra created value with big importance for the consumers. For the segment of customer relationship and customer...

References: * Osterwalder, A. and Pigneur, Y. (2009). Business model generation (first edition). Modderman Drukwerk, Amsterdam, The Netherlands.
* Understanding business model fundamentals (2012) Retrieved May 11, 2013 from http://
* How Aldi makes money and stays cheap? Retrieved May 11, 2013 from http://
* Retrieved May 11, 2013
* Competitive advantage through efficiency. An Aldi case study. Retrieved May 11, 2013 from
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