Mercadona: A Leading Supermarket in Spain
Added on 2023-02-06
9 Pages3226 Words81 Views
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Introduction:
Mercadona is regarded as a family-run business that specializes in product distribution and has
roots in the Valencian Community. Francisco Roig Ballester and his wife Trinidad Alfonso
Mocholi are the founders of this business, which was established in 1977. Mercadona was
originally thought of as a butcher store, but over time it developed into the biggest supermarket
network in Spain that it is today. Throughout Spain, it operates about 1700 supermarkets.
Currently, company also has four own brands, including Hacendado, Bosque verde, Deliplus,
and Compy. Due to all of this, it has surpassed other significant, globally successful businesses
to take the top spot among food shops in Spain.
The company's Total Quality model, which emphasizes complete stakeholder satisfaction, has
been the fundamental factor in its success. It should be mentioned that the customer is its
primary focus because the company views the client as its "boss" and directs all its efforts
toward the client.
Mission:
The goal of Mercadona is to meet the demands of all its constituents, with a particular emphasis
on customers, but also on employees, suppliers, society, and capital. All of this is done with
the goal of attaining maximum profitability through its own brand's differentiation in quality
and pricing.
Mercadona's vision:
As well as developing customer loyalty by becoming their preferred supermarket and a
competitive business in every way, Mercadona's objective is to become the top supermarket in
Spain. From having a distinctive company identity to completely differentiating itself from its
rivals. With the best quality, most comprehensive service, and the quickest turnaround times
feasible, Mercadona strives to become a pricing leader.
Competitive advantage:
Affordable rates, superior, individualized customer service, items for celiacs, and favourable
working circumstances are Mercadona's competitive advantages.
Because it is built on all the small competitive advantages they have and because the business
has been able to continue growing over the long term, it is sustainable. Both customers and
employees are content. Although expensive, staff training is predicated on efficiency (full
Mercadona is regarded as a family-run business that specializes in product distribution and has
roots in the Valencian Community. Francisco Roig Ballester and his wife Trinidad Alfonso
Mocholi are the founders of this business, which was established in 1977. Mercadona was
originally thought of as a butcher store, but over time it developed into the biggest supermarket
network in Spain that it is today. Throughout Spain, it operates about 1700 supermarkets.
Currently, company also has four own brands, including Hacendado, Bosque verde, Deliplus,
and Compy. Due to all of this, it has surpassed other significant, globally successful businesses
to take the top spot among food shops in Spain.
The company's Total Quality model, which emphasizes complete stakeholder satisfaction, has
been the fundamental factor in its success. It should be mentioned that the customer is its
primary focus because the company views the client as its "boss" and directs all its efforts
toward the client.
Mission:
The goal of Mercadona is to meet the demands of all its constituents, with a particular emphasis
on customers, but also on employees, suppliers, society, and capital. All of this is done with
the goal of attaining maximum profitability through its own brand's differentiation in quality
and pricing.
Mercadona's vision:
As well as developing customer loyalty by becoming their preferred supermarket and a
competitive business in every way, Mercadona's objective is to become the top supermarket in
Spain. From having a distinctive company identity to completely differentiating itself from its
rivals. With the best quality, most comprehensive service, and the quickest turnaround times
feasible, Mercadona strives to become a pricing leader.
Competitive advantage:
Affordable rates, superior, individualized customer service, items for celiacs, and favourable
working circumstances are Mercadona's competitive advantages.
Because it is built on all the small competitive advantages they have and because the business
has been able to continue growing over the long term, it is sustainable. Both customers and
employees are content. Although expensive, staff training is predicated on efficiency (full
tracks negotiation and productivity of employees). The effectiveness reflects the long-term
worth of the business.
PESTEL analysis:
Political environment:
Since Spain has been a democracy since 1977, the political climate is regarded as stable because
there are no indications that this regime will alter. Due to the COVID-19-related health issue
that is affecting both our nation and the rest of the world, we currently find ourselves in a very
challenging situation. With the current crisis, there is a significant 16% unemployment rate.
Despite this, Mercadona has continued to employ a policy of confidence in its employees and
permanent contracts for all of them. In this way, it exudes a strong sense of security during
these uncertain and uneasy times.
Economic environment:
The most important economic factor to highlight is the economic crisis that began in 2008 in
Spain and in part of Europe. This fact has had great consequences for all sectors. If we focus
on the food sector, we see that there has been a significant rise in prices, also due to the rise in
VAT or a considerable increase in the unemployment rate, which has caused consumers to need
to obtain higher-quality products. or equal quality at a lower price.
Socio-cultural environment:
In Spain, the birth rate has decreased along with the death rate in recent years, leading to a rise
in the number of elderly people and a decrease in the number of children. Even though this is
an isolated incident and the trend toward longer life expectancy and a lower birth rate will
continue, studies do not yet allow us to calculate the impact that this pandemic has had and is
having on society. It is true that the number of elderly people has significantly decreased as a
result of the current pandemic.
Technological environment:
In this instance, Mercadona has modernized its technology by adding an online purchasing
option, making it among the most cutting-edge in the grocery industry. This makes Mercadona
one of the top businesses in Spain, together with the fact that it consistently invests in the
creation of new policies and initiatives.
Ecological environment:
worth of the business.
PESTEL analysis:
Political environment:
Since Spain has been a democracy since 1977, the political climate is regarded as stable because
there are no indications that this regime will alter. Due to the COVID-19-related health issue
that is affecting both our nation and the rest of the world, we currently find ourselves in a very
challenging situation. With the current crisis, there is a significant 16% unemployment rate.
Despite this, Mercadona has continued to employ a policy of confidence in its employees and
permanent contracts for all of them. In this way, it exudes a strong sense of security during
these uncertain and uneasy times.
Economic environment:
The most important economic factor to highlight is the economic crisis that began in 2008 in
Spain and in part of Europe. This fact has had great consequences for all sectors. If we focus
on the food sector, we see that there has been a significant rise in prices, also due to the rise in
VAT or a considerable increase in the unemployment rate, which has caused consumers to need
to obtain higher-quality products. or equal quality at a lower price.
Socio-cultural environment:
In Spain, the birth rate has decreased along with the death rate in recent years, leading to a rise
in the number of elderly people and a decrease in the number of children. Even though this is
an isolated incident and the trend toward longer life expectancy and a lower birth rate will
continue, studies do not yet allow us to calculate the impact that this pandemic has had and is
having on society. It is true that the number of elderly people has significantly decreased as a
result of the current pandemic.
Technological environment:
In this instance, Mercadona has modernized its technology by adding an online purchasing
option, making it among the most cutting-edge in the grocery industry. This makes Mercadona
one of the top businesses in Spain, together with the fact that it consistently invests in the
creation of new policies and initiatives.
Ecological environment:
Based on its cattle and agricultural industries, Spain is regarded as one of the most resource-
efficient nations. Due to the extensive amount of daylight, it receives throughout all its regions,
it is also one of the nations in Europe that uses solar energy the most. Mercadona is particularly
concerned about the environment, and this is evident in its campaigns. In all its locations, the
company has signs encouraging recycling and uses recyclable bags to encourage sustainability.
Legal environment:
Spain has many work regulations as well as environmental laws.
SWOT analysis:
STRENGTHS OPPORTUNITIES
White brands of superior quality and wide market
acceptance. (Hacendado, Bosque verde...).
Many stores in most autonomous communities.
Lower pricing than those at other supermarkets.
Has a stable customer base and is a well-known brand
without the need for advertising.
Customers with a limited range of motion may be drawn
to home delivery.
Benefits of loyalty for holders of Mercadona cards.
The top national products are available.
Human resources, treating employees well
Expansion of online commerce.
Due to the country's economic difficulties
and its low-price policy, the potential for
gaining new customers.
Growth potential into new markets
WEAKNESSES THREATS
Lack of brand choice could turn off discerning buyers.
No service for substantial customers. (Hotels and
eateries)
Only sells items relating to the home or food.
Absence of a global presence
The country's weak economy and high
unemployment rate discourage
investment in the shopping cart.
Suppliers' ability to influence prices.
Negotiating power on the part of the
consumer
As a result, it is clear from this SWOT analysis that Mercadona has several issues that need to
be resolved or countered if it is to maintain its current level of growth and increase its lead over
its primary rivals.
efficient nations. Due to the extensive amount of daylight, it receives throughout all its regions,
it is also one of the nations in Europe that uses solar energy the most. Mercadona is particularly
concerned about the environment, and this is evident in its campaigns. In all its locations, the
company has signs encouraging recycling and uses recyclable bags to encourage sustainability.
Legal environment:
Spain has many work regulations as well as environmental laws.
SWOT analysis:
STRENGTHS OPPORTUNITIES
White brands of superior quality and wide market
acceptance. (Hacendado, Bosque verde...).
Many stores in most autonomous communities.
Lower pricing than those at other supermarkets.
Has a stable customer base and is a well-known brand
without the need for advertising.
Customers with a limited range of motion may be drawn
to home delivery.
Benefits of loyalty for holders of Mercadona cards.
The top national products are available.
Human resources, treating employees well
Expansion of online commerce.
Due to the country's economic difficulties
and its low-price policy, the potential for
gaining new customers.
Growth potential into new markets
WEAKNESSES THREATS
Lack of brand choice could turn off discerning buyers.
No service for substantial customers. (Hotels and
eateries)
Only sells items relating to the home or food.
Absence of a global presence
The country's weak economy and high
unemployment rate discourage
investment in the shopping cart.
Suppliers' ability to influence prices.
Negotiating power on the part of the
consumer
As a result, it is clear from this SWOT analysis that Mercadona has several issues that need to
be resolved or countered if it is to maintain its current level of growth and increase its lead over
its primary rivals.
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