Aldi: The Dark Horse Discounter

1. Should Wal-Mart be worried about Aldi? Why? Should Aldi be worried about Wal-Mart? Why?
2. Do you believe Aldi to be at a competitive advantage or disadvantage relative to Wal-Mart?
3. What is Aldi’s generic strategy (according to Porter)?
4. How do you think Wal-Mart will react? Is the response appropriate, in your opinion?
5. In locating its stores, should Aldi avoid locating close to a Wal-Mart store?

Sample Solution