Three Strokes of good fortune: The Making of Aldi Mobile

Today, instead of three strikes that lead to disaster, we are going to explore the three STROKES of good luck and how it turned a great idea at the right time into a hundred million dollar business

In both the startup and corporate case studies we’ve seen so far it’s clear that when Three Strikes (of bad luck) happen, it’s not the fact that they actually happen but the convergent timing of two strikes and their compounding effect that cause disaster. 

When we come to good luck it’s Three Strokes (not Three Strikes) and timing is also crucial but - as we shall see with this case study and many more - it is not down to the convergent timing of any of the Strokes, but rather the broader market timing - the time in history - and the interrelation of each Stroke that combine to deliver great success. 

p.s. Welcome to the 28 new subscribers from last week, we’ve got people from all over the world, in all areas of business. Please write me, I wan to hear your story.

Gregor Aschoff is a very interesting guy.. 

For example, he can help anyone, anywhere in the world, launch a Mobile Virtual Network Operator (MVNO). 

“WTF is a MVNO?!” I hear you ask? 

Well, unlike big telcos, MVNOs do not own the telecommunications infrastructure they use.. instead they lease it (from the big telcos) and use the network to deliver a “unique set of services”. 

But before you click away thinking this will be a tech snooze-fest, stay with me. It’s not. 

This is the first time I write about a company’s success so I wanted to make it a good one. One of our subscribers, one of YOU, is Gregor Aschoff...and he gave me a window into the success of Aldi Mobile (an idea that he turned into reality) and - using publicly available information - I have pieced together enough of the story to apply my Three Strikes Theory. But of course, instead of Three Strikes of bad luck, today we’re going to apply Three Strokes of good luck. Lets go!

Gregor is a tall German man, with a depth of technical understanding, a lot of business experience, and surprisingly (but maybe relevant to his long-term success) he also does a lot of yoga.  He was the Managing Director of Medion Australia, a consumer electronics company. Under Gregor’s leadership, Medion Australia collaborated with the supermarket chain ALDI to launch ALDI Mobile in Australia. Gregor played a crucial role in overseeing the partnership and ensuring the successful launch of ALDI Mobile's services in the Australian market.

Here are the series of fortunate events that aligned to propel an idea into reality, then into great success. 

Stroke One: An Inspired Idea

In 2016, while the market was inundated with offerings of prepaid mobile minutes at exorbitant rates—minutes that frustratingly expired—Aldi Mobile chose a path less travelled. The inspired idea was disarmingly simple yet revolutionary: offer low-priced mobile minutes that did not expire, based on fair usage. This strategy addressed a pain point for consumers, presenting a value proposition that was both attractive and sensible. It distinguished Aldi Mobile in a crowded marketplace, setting the stage for its ascent.

Stroke Two: A Strategic Partnership with Telstra

The second stroke of good fortune was a deal that saw Aldi Mobile partnering with Australia's telecommunications giant, Telstra. Telstra had recently launched its 4G network, so its 3G bandwidth was, in effect, remnant inventory. Seizing this opportunity, Aldi Mobile negotiated access to this 3G bandwidth at a low cost. This allowed the company to offer its customers affordable rates while still seeing acceptable profit margins.

Stroke Three: Leveraging Aldi’s network of supermarkets

Aldi Mobile then successfully leveraged ALDI’s supermarket network as a customer acquisition channel. By turning every Aldi store into a touchpoint for mobile services, the company tapped into a vast customer base. This strategic leverage not only facilitated widespread awareness and accessibility of its mobile offerings but also enabled Aldi Mobile to significantly undercut traditional marketing costs associated with customer acquisition.

The interrelation of these three strokes of good luck catalysed Aldi Mobile's rise to prominence. Fascinatingly, if anyone of these strokes had not happened, then Aldi Mobile would simply not have achieved the same extraordinary success. Market timing was also crucial.. for example the remnant 3G inventory was not available years before, or relevant years later. In fact, Australia’s 3G network is about to be switched off. 

Now the question for each of us is how can we put ourselves and our companies in the path of good luck and - perhaps most importantly – how can we do this at the right time in history and hopefully in close succession? From my experience:

Strategy is usually the starting point

A supply-side deal is normally the next stepping stone

And a path-to-market that is successfully executed on is usually the third stroke

The one thing that I just LOVE from this case study is the concept of remnant inventory. 

I myself have built a multi-million dollar (digital) business from the ground up. I started by buying someone else's remnant (digital) inventory low and selling it high. That time in history was ripe for my innovation, but that was 15 years ago, and that time in history is now long gone. The business I Founded has since grew into a full-service marketing agency that works for more than half of Australia’s Universities, numerous startups, and large and listed companies helping them market themselves all over the world - they have implemented campaigns in over 50 countries so far - and I am very proud (more on that story later).. But the start of that company was a single innovative strategy, a few key supply-side deals, and successfully executing on a path-to-market.. just like Aldi Mobile did. 

Today, I consult to a company that has an entire business model built on turning the (physical) waste product of others into high profit margin (physical) products that are in high demand… this innovation drives sustainability both up and down stream literally turning someone’s trash into someone else’s treasure. The time for that business is NOW, for so many reasons. They are winning because of an innovative strategy, a few key supply-side deals, and successfully executing on a path-to-market.. just like Aldi Mobile did. 

But what can each of us to today, in our businesses, to put ourselves and our companies in good luck’s way? How can we manoeuvre things to deliver the Three Strokes that our companies need hit the big time? Part of my mission is to expose this and share actionable insights around it, and I will. 

For today, it’s enough to say that the above examples don’t apply to all business models, but what does apply is the importance of market timing - the time in history - and the crucial interrelation of one, two (and hopefully three) strokes. 

In the coming weeks we’ll explore how Three Strokes applies to one of the worlds largest companies… and how Three Strikes is binging another one of the worlds largest companies to it’s knees. 

Stay tuned, and as always, please send me your feedback! 

SK