Supercompra: Sourcing from Small Andean Farmers Harvard Case Solution & Analysis

Grupo Mazaplan, Mexican giant entered the Ecuadorian market by acquiring a controlling stake Supercompra, major local retailers. Juan Pedro Zapata, incoming Director General Supercompra discarded in buying a model in which the central office is the source of all products with national distributors, who then made a direct delivery to retail outlets, and replace it with another showing the decentralized offices of a company called "affinity platforms" located in different parts of the country who bought products directly from local farmers. The first platform was created in the Andean region, where farmers were not important. The case looks at the challenges that companies face when trying to develop trade relations with low-income suppliers through market mechanisms, and indicate how these relationships Supercompra processed. This is chronologically in March 2006, the time when Supercompra must decide how to proceed with regard to its relationship with its low-income vendors: 1) allow the relationship with some manufacturers Pallatanga less and less distance, stopping further efforts and resources invested in them organizations and devoting efforts entirely builds relationships with local brokers and large commercial farmers, and 2) to continue the relationship with small producers, but to reinvent it as a social or CSR initiative, or, 3) to allocate more effort and financial resources to create a stable and solid business relationships with small producers, who should make a major investment, and to devote more time and effort, organization and promotion of small farmers with the hope of achieving profitable trade relations with them for several years. "Hide
by Josephine F. Bruni Celli, Manuela Plaza Source: Social Enterprise Knowledge Network 18 pages. Publication Date: January 28, 2013. Prod. #: SKE145-PDF-ENG

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