Mercadona Tech: Separating the Shower From the Bathtub
In May 2022, Mercadona, along with its e-commerce division, was looking for ways to continue growing. They had developed what was probably the only profitable online supermarket in Spain up to the moment. The hive logistics model was operating in just three cities: Valencia, Madrid, and Barcelona. After six years, the time had come to expand domestically. Mercadona invoiced E510m in e-commerce, but half of those sales (E263m) were done where the hives did not reach, with an old website and an inefficient operating model. How should Mercadona evolve the model? What could they learn from the past and how could they prevent possible future mistakes?
Collection: IESE (España)
Ref: M-1396-E
Format: PDF
Number of pages: 20
Publication Date: Jan 31, 2023
Language: English, Spanish
What material is included in this case:
Description
In May 2022, Mercadona, along with its e-commerce division, was looking for ways to continue growing. They had developed what was probably the only profitable online supermarket in Spain up to the moment. The hive logistics model was operating in just three cities: Valencia, Madrid, and Barcelona. After six years, the time had come to expand domestically. Mercadona invoiced E510m in e-commerce, but half of those sales (E263m) were done where the hives did not reach, with an old website and an inefficient operating model. How should Mercadona evolve the model? What could they learn from the past and how could they prevent possible future mistakes?
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Geographic Setting: Spain
Learning Objective
The case allows us to discuss the levers of profitability in an e-commerce model, as well as the concept of a laboratory, in which a new business is launched within a larger company.
The student must analyze the keys to the success of this model, its ability to scale to the rest of the organization, as well as the decisions that should be made from the sales offering to customers.
The student must analyze the keys to the success of this model, its ability to scale to the rest of the organization, as well as the decisions that should be made from the sales offering to customers.
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"Mercadona Tech: Separating the Shower From the Bathtub"
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