Meili

  • Verified Account

Submitted

Aldi: delivering what and only what the customer values
Meili
Last modified on December 9, 2015 at 8:18 pm
Aldi’s business model is formulated with a very specific customer in mind: someone who evaluates groceries from a utilitarian perspective. Aldi’s customer wants low prices in a quick shopping environment and is willing to make sacrifices on choice and service. To [...]

Activity Feed

On December 13, 2015, mhan128 commented on Aldi: delivering what and only what the customer values :

Hi Duwain,

Thanks for your comment! I think one way Aldi mitigates this is by producing ‘premium’ private label. That is to say, they use private label products that look like legitimate brands rather than ‘no-frills’ products. It’s also important to note that in many situations, the producer of a private label and branded goods are actually one and the same!

This HBR article talks about some of the recent success private label products have encountered: https://hbr.org/1996/01/brands-versus-private-labels-fighting-to-win

M

On December 10, 2015, mhan128 commented on VALEANT: Valiant Vendor or Voracious Villain? :

The morality of Valeant’s operating model is often brought into question from an emotional perspective but here’s a counter argument. Pharmaceutical companies invest in R&D for a return which (sometimes) is through selling the drug on the market. Valeant is just offering another channel through which pharmaceutical companies can make that return: having their drug acquired. True, if EVERY pharmaceutical company did what Valeant did, it would be a disaster. But that doesn’t mean there isn’t a space for Valeant. As for the price increases, Billy Ackman swears the company is just as strong without them.

On December 9, 2015, mhan128 commented on HBS: Creating Human, Intellectual, and Financial Capital :

😀

On December 9, 2015, mhan128 commented on Yakult: Success with “Yakult Ladies” :

Haha this is awesome. I love Yakult and Yakult ladies is ingenious!

On December 9, 2015, mhan128 commented on Guidewire Software – Sexy and They Know It :

Wow, that’s crazy how long the software refresh cycle is! I do wonder if there’s room in Guidewire’s operating model to become even more efficient, given they are currently in a fairly protected position and arguably have little incentive to slim down…

On December 8, 2015, mhan128 commented on Louis Vuitton: Luxury handbags coming off an assembly line? :

TOM process improvements in luxury goods? I had no idea! This is a really interesting read. It does actually beg the question: how much automation would consumers accept and still consider a product luxury?

On December 8, 2015, mhan128 commented on Rocket Internet: Starting Businesses in the Fast Lane :

A common message from VCs is that great ideas are a dime a dozen but great teams are hard to come by. How does Rocket Internet deal with this issue? It seems like they are just transplanting good ideas but do their teams really have the conviction to execute? (Especially since Rocket Internet owns the equity…?)