Power in the supplier-retailer relationship: The supplier change of Vi
Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
The power situation between the retailers and the suppliers in the European grocery industry has been changing as the retailer chains have started to grow and develop their operations. This has resulted in a power shift from the supplier side to the retailers. In the Swedish grocery market, there are four big suppliers and the competition has not been high because of the dominance of too few suppliers. Now the competition environment is facing a change as the low price chains have begun to enter the market. In the fall 2004 Vivo (now named Vi), an alliance of independent retailers, announced that it would terminate its contract with one of four big suppliers, Axfood and change to Bergendahls, a smaller supplier established in southern Sweden, to gain a better market position. After the change the alliance has started to position the chain as an alternative to the other centrally managed grocery chains. Our interest in this change event is focused on the power issues between the supplier and the retailer and the main reasons and consequences of the supplier change. The research concentrates mainly on the retailer’s experiences of the change event, but to gain a full depiction of the situation, the view of supplier side has also been included.
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IdentifiersURN: urn:nbn:se:su:diva-5579OAI: oai:DiVA.org:su-5579DiVA: diva2:195446