Aldi Porters Five Forces Analysis 2018

By: Patricia Nanjekhe

The UK food retailing industry is currently highly competitive, characterized by price wars, heavy discounting and increased merger and acquisition activity as seen in the recent merger of Tesco and wholesaler Bookers Group in March 2018 and the much anticipated merger of Sainsburys and Asda (Sainsdas). The price-driven nature of the industry has in turn led to declining sales and market share especially among the Big Four and a squeeze on their profit margins. Using Porters Five Forces, this report looks at how the five forces of competition buyer power, supplier power, threat of substitutes, barriers to entry and nature of industry rivalry are driving competition in the UK food retailing industry.

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