APP update for ALDI
This report involves how information system solves the issues experienced by a leading global supermarket chain and how the proposed plan will be enforced its targets of capturing more market shares and increasing company’s profits.
Firstly, our team will describe the main problems to be confronted by ALDI. Then the goals and objectives of the project will be clarified, and the crucial factor for business future development is also listed. The following sector offers a full view of the business case. Specifically, this part contains the reasons and motivations for exploiting the new project, and the business case organizer. ...view middle of the document...
However, Special Buys app is unable to offer the service of online shopping, as ALDI have no plans to launch online home delivery even though the online grocery market will grow around 50 per cent in two years (Somerville, 2014) .
Mobile e-commerce has become an inevitable trend in recent years as consumers continue to embrace internet shopping, and therefore ALDI should adapt to the circumstances by employing Mobile e-commerce. Woolworth and Coles, two supermarket giant in Australia market, have already provided mobile app integrated with online shopping, and their online sales accounted for important part of total sales. For instance, Woolworth, which had completed an integration of Online shopping system and mobile app since 2012 (Winterford, 2012), announced plans that its e-commerce platform will be expanded to reach $1 billion in online sales (Jeffries, 2012). If ALDI continue to ignore the trend of online shopping, it would overlook the opportunity to the online market.
It’s the time for ALDI to employ Mobile e-commerce, and integrate its Special Buys app with online shopping and home delivery service, therefore it can expand the market share by attracting future customers and improve the loyalty of current customers.
The goal of this project can be briefly summarized into making shopping easier for the customers by delivering whatever they want to the doorsteps of customers rather than bringing the customers to doorsteps of the store. Specifically, there are mainly three targets it is expected to deliver. First of all, it is expected to allow customers to do the shopping without going to the actual store by adding the function of online purchasing to the current app. Moreover, in this project, QR-code technology will be added to the app, which allows customers to purchase online simply by scanning the QR code on the specific item. Finally, the supermarket will provide home delivery service after customers purchase goods through the app. All above combined will produce value for the customers by saving their time and money for shopping.
2.2 Organizational Objectives
The pre-defined goal of ALDI has always been to keep its market share as a small-scale grocery retailer in Australian market, under extremely intense competition with other companies. Originally founded in Germany in 1913, ALDI is now a leading discount supermarket chain in the world. Since spreading into Australia in 2000, ALDI has been a small but significant player in the Australian market. As a small grocery retailer, it made up 0.2% of Australian grocery market share in 2000, which increased to 6.4% within five years (AC Nielsen Grocery Report, 2004). However, the threat from other competitors in Australian market is extremely severe. First of all, large-scale shopping malls or supermarkets such as Woolworths and Coles, which has more than two thirds of the total market share, would be the primary threat. With large...