Subject category:
Strategy and General Management
Originally published in:
2019
Version: 20-Mar-2019
Length: 10 pages
Data source: Published sources
Abstract
Mercadona is the best Spanish supermarket (grocery industry) outperforming the rest and accounting for around 25% of the market share (only groceries), while the second (Carrefour large multinational) representing just 11%. The secret of Mercadona relies, among many other factors, in its business model and its open innovation strategy. Showing a totally different business model to the industry, Mercadona's open innovation strategy consists of co-creating products with its customers and engaging in trust-based and long-term relationships with its suppliers, most of them working exclusively for Mercadona. Mercadona gathers information and knowledge on its customers and, subsequently, the suppliers produce the Mercadona's requirements. Thus, rather than just distributing, Mercadona's original business models consists of prescribing what customers want, mastering an open innovation strategy.
Teaching and learning
This item is suitable for undergraduate and postgraduate courses.Time period
The events covered by this case took place in 2018.Geographical setting
Region:
Europe
Country:
Spain
Location:
Valencia
Featured company
Mercadona
Employees:
10000+
Turnover:
EUR 24,000,000,000
Type:
Privately held
Industry:
Grocery
Other keywords:
Leading Spanish grocery retail
About
Abstract
Mercadona is the best Spanish supermarket (grocery industry) outperforming the rest and accounting for around 25% of the market share (only groceries), while the second (Carrefour large multinational) representing just 11%. The secret of Mercadona relies, among many other factors, in its business model and its open innovation strategy. Showing a totally different business model to the industry, Mercadona's open innovation strategy consists of co-creating products with its customers and engaging in trust-based and long-term relationships with its suppliers, most of them working exclusively for Mercadona. Mercadona gathers information and knowledge on its customers and, subsequently, the suppliers produce the Mercadona's requirements. Thus, rather than just distributing, Mercadona's original business models consists of prescribing what customers want, mastering an open innovation strategy.
Teaching and learning
This item is suitable for undergraduate and postgraduate courses.Settings
Time period
The events covered by this case took place in 2018.Geographical setting
Region:
Europe
Country:
Spain
Location:
Valencia
Featured company
Mercadona
Employees:
10000+
Turnover:
EUR 24,000,000,000
Type:
Privately held
Industry:
Grocery
Other keywords:
Leading Spanish grocery retail