Mercadona: From operational excellence to strategic expansion

After various decades of uninterrupted growth, Mercadona was completing its expansion in Spain and Portugal. Faced with this situation, it was natural in which direction the company strategy should head. Should it continue its expansion process into other countries, such as Italy? If so, what impact would the recent change of model from "integrated suppliers" to "totalers" have on the process?
Collection: IESE (España)
Ref: OIT-59-E
Format: PDF
Number of pages: 19
Publication Date: Sep 25, 2025
Language: English, Spanish, Portuguese Portugal

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Description

After various decades of uninterrupted growth, Mercadona was completing its expansion in Spain and Portugal. Faced with this situation, it was natural in which direction the company strategy should head. Should it continue its expansion process into other countries, such as Italy? If so, what impact would the recent change of model from "integrated suppliers" to "totalers" have on the process?
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Year: 2020
Geographic Setting: Spain
Industry Setting: Distribution, consumer goods, equipments and warehousing

Learning Objective

The case is focused on the analysis of the Mercadona business model, a win-win approach with suppliers in a sector where the retailer has traditionally "squeezed" the supplier. The model reveals itself inductively during the session, reaching generality from the specific facts. The case is well-suited to any program with a generalist scope: MBA, EMBA, PDD, PDG.

Mercadona: From operational excellence to strategic expansion

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"Mercadona: From operational excellence to strategic expansion "