ALDI IS A NO-FRILLS GROCERY CHAIN. IT SELLS GROCERY STAPLES RIGHT...

72. Aldi is a no-frills grocery chain. It sells grocery staples right out of crates and boxes with emphasis on

low-priced, private-label brands. Aldi stores are typically about one-third the size of the traditional

supermarket. By controlling expenses, Aldi enables its customers to save 30 to 50 percent compared to

Kroger customers. The chain targets bargain hunters who are willing to rent a cart and bag their own

groceries. Aldi has a(n)

a. market-homogeneous focus

b. cost competitive advantage

c. product aggregation strategy

d. revenue-based competitive advantage

e. profit-enhanced advantage

ANS: B

A competitive advantage is a set of unique features of a company and its product that are perceived by

the target market as significant and superior to the competition.

PTS: 1

REF: 34

OBJ: 02-6

TOP: AACSB Reflective Thinking

KEY: CB&E Model Strategy

MSC: BLOOMS Level III Application