Abstract
The aim of this study is to explore the strategy and supply chain management characteristics of berry-related companies to face the bargaining power unbalance that fosters the European fresh food supply chain; branding-differentiation strategies are particularly explored as mechanisms to create sustainable value for all players along the chain. To this end, a case study is deeply analyzed to find out the different supply chain management mechanisms used by an international berry marketer in order to strengthen the adoption of a commodity differentiation strategy through the creation and positioning of a high-value brand. Data were obtained through 15 semi-structured interviews. Findings suggest that strategic moves towards differentiation and positioning might be bolstered by the development and management of stable relationships with the different members involved in the supply chain. Additionally, supply chain risk-control mechanisms, rather than having a central role in the management of the various members of the chain, turned out to be support mechanisms that work together with corporate identity alignment and inter-organizational trust in order to ensure cooperation toward differentiation and positioning in the market.
Highlights
The berry sector in Spain has experienced rapid growth, both in terms of kilograms of production and in Euros of exports to European markets, over the past few years
The purpose of this study is to explore the role of different management mechanisms to effectively coordinate supply chain partners in order to strengthen the adoption of a commodity differentiation strategy through the creation and positioning of a brand, as a way to prevent bargaining power abuse from large retailers in international food markets
The purpose of this research is to study how different supply chain management mechanisms (alignment, trust, risk management systems (RMS) are used by fresh produce companies in order to strengthen the adoption of a commodity differentiation strategy through the creation and positioning of a brand and how it helps to create superior market-based value and higher supply chain performance
Summary
The berry sector in Spain has experienced rapid growth, both in terms of kilograms of production and in Euros of exports to European markets, over the past few years. The berry sector in Spain is a worldwide benchmark, important inefficiencies are observed in the implementation of strategies to overcome competition limitations of international markets, due to the undifferentiated product and production process. Such challenges are significant in the berry international supply chain, where the implementation of product and process differentiation is blocked by the characteristics of the fresh produce chain. As a result of the lack of bargaining power to defend against large operators, Spanish berry growers and intermediaries face a high risk of being driven out of international supply channels, so their proficiency, and even survival, could be seriously compromised in the long-term
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