Australia has a stable political environment and legislations are created to address growth in the nation. This makes it an ideal place for a business to commence operations. Australia is known for a stable economy, and there is increased flow of foreign investments into a developed nation. There is also increase in inflation that has been observed in the nation. Moreover, the strong domestic demand in the markets enables the companies to sustain (Simon, Fischbach and Schoder, 2014). The nation is dependent on imports from other nations to sustain. There are high levels of importing in the nations. The level of export in the nation is lower when compared to the level of importing
The people are diverse. Owing to this, they are much more open to try newer products that are affordable. This is one of the reasons for the sustenance of Aldi in the current markets. The cost of living in the nation is higher when compared to other nations. Aldi as a company has a positive brand image, which is able to provide affordable high-quality products to the people. There is a continual increase in the real estate markets and increases in inflation. In this paradigm, the low-cost options are welcomed by the people. The nation as a whole has infrastructure to ensure that the businesses can sustain in the current markets. This is the reason for the German Company Aldi to sustain in the current times. There is low operating cost that is followed by the company. This enables the company to sustain in the current markets. Australian markets are inundated with products from across the world. This has created competitive markets. This is essentially a buyer’s market. The companies that want to sustain in these markets need to be aware of these basic factors. Aldi Company sells product that are low cost. In some cases, the company’s products are assumed to be of lower quality owing to the low pricing of the products.
Aldi Company faces threats from the companies of the emerging nations. This increase in the globalization has caused more competition. Other European brands are high quality brands and they cannot compete with the imported products from emerging nations. These factors continue to pervade the company to sustain in the nation. It has been taking considerable efforts in creation of a socially responsible supermarket. The company has a strong responsibility towards the local communities and has been making positive contributions. The three areas of focus of the company are nutritious food, aiding the children and youth in local communities. Added to this, the company strives to service the disabled people in the population. Emphasize is given to the companies that build local community interactions.
Hence, it can be summarized that the high level of competition, increase in inflation, global competitors, and local community culture need to be factored by the company to device appropriate internal factors.
The managers need to be aware of these external markets to sustain in the nation. The business need of the company must factor in the ethical mandates of the company. They have been taking policies as a reaction to the external market environment.