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Symington family estates : how to mitigate buyers’ bargaining power?

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Bibliographic Details
Summary:Port wine is a traditional Portuguese beverage that can only be produced in Douro Demarcated Region. The Portuguese consumption has been increasing while the exports have been decreasing. In terms of value the market as sustained its position due to an increase of sales in the special categories. This dissertation aims to assess the challenges SFE, one of the biggest Port producers, has been facing in its relationship with large retailers – super and hyper markets. The latter impose some pressures to the former, mainly through their bargaining power, resultant from a dependency on retailers. Price is the main variable of dependency, with implications on SFE’s profitability and economic performance. In order to mitigate such pressures and to ensure the future sustainability of SFE, the analysis here conducted will attempt on provide and summarize the drivers of this unbalanced power amongst the players, as well as, some solutions to mitigate them.
Main Authors:Correia, Maria Manuela Caldas Canedo Regadas
Subject:Supply chain Bargaining power Wine and spirits industry Canais de distribuição Poder negocial Indústria vinho e bebidas espirituosas
Year:2017
Country:Portugal
Document type:master thesis
Access type:open access
Associated institution:Universidade Católica Portuguesa
Language:English
Origin:Veritati - Repositório Institucional da Universidade Católica Portuguesa
Description
Summary:Port wine is a traditional Portuguese beverage that can only be produced in Douro Demarcated Region. The Portuguese consumption has been increasing while the exports have been decreasing. In terms of value the market as sustained its position due to an increase of sales in the special categories. This dissertation aims to assess the challenges SFE, one of the biggest Port producers, has been facing in its relationship with large retailers – super and hyper markets. The latter impose some pressures to the former, mainly through their bargaining power, resultant from a dependency on retailers. Price is the main variable of dependency, with implications on SFE’s profitability and economic performance. In order to mitigate such pressures and to ensure the future sustainability of SFE, the analysis here conducted will attempt on provide and summarize the drivers of this unbalanced power amongst the players, as well as, some solutions to mitigate them.