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Cost Leadership One of the key requirements for achieving success as an ongoing price discounter is to create a cost leadership position. That means that the firm has built some cost advantages over their competition. This activity quickly highlights some of the practices that Aldi Supermarkets (a relatively new discount supermarket in Australia) have adopted to achieve a cost leadership position and provide ongoing longer prices to customers. ACTIVITY/TASK Some of Aldi’s Practices – Designed to Reduce Costs 1.They do not pack the groceries into bags – you have to pack yourself 2.They do not provide free plastic bags – they sell plastic bags (for about 5 cents each) 3.Most of their stores are in ‘low-traffic’ locations, which enables cheaper rent
General Instructions: The following pages are mini cases which you need to comply as the final requirement. You are tasked to answer each case…