Final answer:
Aldi's business strategy revolves around providing high-quality products at low prices through a lean operating model and direct supplier relationships. Aldi is a significant threat to Walmart due to their focus on low prices and aggressive expansion.
Step-by-step explanation:
Aldi's business strategy focuses on providing high-quality products at low prices by offering a limited selection of private-label products and a no-frills shopping experience. They achieve this through a lean operating model, efficient supply chain management, and direct relationships with suppliers. Aldi's commitment to cost-efficiency and value for customers has helped them expand rapidly and become a major player in the retail industry.
Aldi poses a significant threat to Walmart because both companies target a similar customer base with their emphasis on low prices. While Walmart currently dominates the retail industry, Aldi's aggressive expansion and ability to offer competitive pricing could potentially challenge Walmart's market share in the future.