Read the case "Aldi: The Dark Horse Discounter"

This case contrasts Aldi with Wal-Mart, two retailers with a common core in their value proposition (low prices) but radically different models. The purpose of the case is to explore competitive advantage and competitive interactions between these two similar-but-different retailers, and how these determine overall performance. Reading this week's textbook chapter and the HBR article will also help you better understand some of the concepts that are used in this case.

After reading the case, work with your assigned team members and answer the following questions in a 2-3 page double spaced format. When answering the cases, elaborate your answers by using the information provided in the case. The answers will be graded based on how well you have used the materials provided inside the case. Remember that you are not expected to read anything else outside the case to do well in this assignment. All the information that you need to answer the questions properly is presented in the case.

• Include a brief summary of the case (one paragraph).

Assignment Questions:

Aldi, the German-based hard discounter, has ambitious growth plans for the US market. By looking at its position relative to Wal-Mart, we can learn more about strategy and competitive advantage.

1. Should Wal-Mart be worried about Aldi? Should Aldi be worried about Wal-Mart? Do you believe Aldi to be at a competitive advantage or disadvantage relative to Wal-Mart?

2. What is Aldi's strategy?

3. In locating its stores, should Aldi avoid locating close to a Wal-Mart store?