Mercadona's Strategy vs. Competitors' Strategies
In this part of the report, we are going to first identify the objectives of Mercadona, so we have a clear understanding of the “What” of the company. Then, we will investigate the “How” of the company with a breakdown of Mercadona's strategies into three parts, Competitive Strategy, Functional Strategy and Corporate Strategy. Furthermore, we will identify the differences between their strategy and those of its competitors, after which we will conclude with an explanation of the competitive advantages of Mercadona, and the positive results that were delivered from these strategies.
The “What”: Objectives
For Mercadona, their objective is basically to satisfy the 5 components that enables its
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As a result of these long-term contracts and commitment to its suppliers, Mercadona was offered lower costs from supplier, and subsequently, enabled to offer lower prices to consumers. Nowadays, there are 103 companies that are part of their “integrated suppliers,” as Mercadona calls them. The strategic alliance creates a win-win situation of commitment that permits transparency in processes, margin and information on investment risks. Furthermore, Mercadona is able to assert better quality control over its products with the trusted assurance from its suppliers.
The relationship between Mercadona and its “Integrated Suppliers” is so close that it can be defined as a relationship “for life.” To have further understanding of the requirements of said suppliers, we can look at the following guidelines of Mercadona:
• Owners must have ‘passion’ for what they do
• Must be leaders in their respective areas (Examples: Casa Tarradellas, Conservas Escuris, Grupo Siro, RNB which are market leaders in
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A large amount of suppliers have exclusive contracts with Mercadona, and most have long-term contracts to ensure long-term trust and collaboration. Additionally, Mercadona has direct relations with producers, they purchase the products from its origins with no intermediaries to control costs of production and quality.
“Synergies”
Mercadona creates synergies within the supply chain, by transforming what is outsourced to almost an owndership with the goal of controlling quality, price and protection over the competitors. This is a relationship of total cooperation, and is a fundamental part of the company.
“Social Responsibility Involvement”
Many big corporations are now becoming focused on giving back to the society, and Mercadona is one of them. They came up with a program for Environmental and social actions, which is based on logistics optimisation, energy saving and waste prevention and management. In 2014, Mercadona saved 34 million kWh. Besides going green, Mercadona also have collaboration with 53 food banks and other organisations and daily delivery to 73 soup
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This report provides the strategy De Mar’s current strategy to achieve competitive advantage, their three most important operations management decisions, and what they can do improve their most important operations management decisions.
This objective of this paper is to analyze Costco's competitive advantage and business strategy. As part of this analysis, we will
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Thereunto, an important factor in Stila’s approach to its supply chain is the focus on developing strategic relationships with vendors, in which departments inside the company plan carefully to optimize production efficiencies and produce cost savings and manufacturing process stability over time, so long-term relationships are preferred. Price is just one measurement when Stila qualifies contract packagers, for example, as opposed to a more tactical use of vendors, in which a brand owner increases capacity and capability as needed and bases procurement primarily on
1. What are the most likely benefits of forming strategic supply alliances with Sunspot’s key suppliers?
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The primary suppliers should easily be accessible since raw material orders will only be issued upon demand. There must be a