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In 1977 Francisco Roig founded Mercadona along with his wife, Trinidad Alonso. That company that began as a small butcher shop in Valencia has now turned into one of the most known supermarket chains in Spain. The company now in charge of Juan Roig, the CEO of Mercadona counts with 79000 workers all over Spain(Source 1). But there is something special about this chain having to do with the way they work. This is because they mainly concentrate on their ‘Boss” needs , as they call their customers. This is because they let their customer bring up ideas about how the company can improve. They concentrate on lowering their prices and they have less suppliers. But this hasn’t always been like this, in fact this whole new organisation just started 10 years ago in the middle of the Spanish crisis the job opportunities were running low and the population was short of money. Juan Roig took a brave decision and decided to lower the prices and reduce his suppliers and turn them into integrated ones. Quickly Mercadona saw their sales increasing and the number of clients as well. That is the type of chain that it has built to until now ten years later with the same strategy and still innovating. Now they have become a model to many other companies in the world.           Such low price in the market especially for an essential thing such as food and other basic needs that is what the population at that time needed and what they were asking for at that time and Mercadona was clever at that time introducing a new system on the supermarkets in Spain that would still work for them. This new system would consist in offering the products at a lower price but at the same time they would have to reduce the number of suppliers but that wouldn’t necessarily meant that the quality is worse than what the competitors offers ( obviously not the gourmet supermarkets). To save money the company doesn’t spend money in marketing campaigns or any kind of advertising. Instead of that they decide to trust on thee social media ( they have nearly 140,000 followers on twitter) in order to promote themselves. Having in mind that they have the lowest prices available in the supermarkets they don’t offer any discounts because any way they prices are like discounts.(Source 2)As I mentioned before, Mercadona reduced in a big way their number of suppliers in order to not loose money by lowering the price. But they made a very clever move again that now has turned into a key factor to the whole company and just making their suppliers integrated and trustful. The company counts with a small number of integrated suppliers (120) having in mind that they are the biggest supermarket chain in Spain by sales and the third by floor space ( Source 3). The key of this suppliers for Mercadona is that they always keep a trust relationship. This because when Mercadona chose them carefully they were truly supportive with those companies and now they live in a relationship of mutual help where Mercadona helps them grow as a business investing on them and the integrated suppliers offer their products to Mercadona at a lower price as well  as demanding the best quality and they respect each other. This integrated suppliers play a big part on making possible the low prices that Mercadona offers and make a bright and long future for Mercadona with the long term contracts they have all signed.(Sources 2 ,3)Another key for Mercadona is innovating and they do plenty of that every year consistently. They are the leaders of innovation of the food industry of Spain averaging a total of 400 innovations per year, which means that they do more than 1 innovation a day. The most interesting thing about this system is that out of that average of 400 , 100 innovations come from suggestions of the customers ,which shows the care for their customers again. These effect putted in to innovate is then reflected when they end up saving around 500 million euros a year just by reducing unnecessary cost in transport or the purchase and collection of raw materials.(Source 4)Going back in time into crisis it is interesting how Mercadona also helped with the situation apart from escaping from disaster themselves which is pretty impressive and brave. At that year on 2008 when they changed their whole system they achieved the unthinkable. They managed to create approximately 6500 jobs in a year of crisis of unemployment. And those were only the ones they created themselves because they created many more on the companies of their integrated suppliers in which they invested money. The best thing for Spain was that most of their suppliers, if not all, were Spanish but that wouldn’t be all. They were able to convert their supermarket into a model of supermarket that was adapted for the needs of the clients at that time. This need was lower prices and that is what Mercadona gave them .(Source 5)In conclusion Mercadona has achieved a different level of supermarket that it is impressive for the people when they look at the outcome every year but in order to get to this point, they had to make a brave decision which was to lower the prices of all the products. To lower the price is easy but if you fail on your mission it is almost impossible to increase the prices again with success because you would have much lower sales than before lowering the prices. I can’t say it was lucky for them because they planned it all perfect getting all those deals with the integrated suppliers but still give the same quality as the competitor supermarkets and coming up with brilliant innovations that end up saving them millions of euros. A very valuable thing they do is the care and respect they give to the costumer. They are always maximising the profit but never affecting the value of their products.It is impressive how they didn’t only survive in crisis but also they grew as a company. They used creativity and ingenuity to overcome crisis as shown by the statistics . Joan Roig, the CEO of the company talked about his decision in 2011 “It is not time to lament but to face the problems and to take risks, because the recovery starts by one itself”.Mercadona is not the most Globalised company but it has became an example of business for many other companies in the world that they are now using their method. In fact this case is studied in many prestigious universities like Harvard and other business schools.

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