ALTER ECO Business Plan

Alter Eco, which was first incorporated in 1999, achieved total 2004 sales of ¤5.4 million. Portraying itself as the French leader in fair trade food products such as coffee, tea, chocolate, olive oil and fruit juice, the company markets all of its products through France's large retail chains, including Monoprix, Leclerc, ATAC and Système U. Fair trade is a form of international trade in which importers from developed countries work with groups of small disadvantaged growers from the Global South so as to build trade relations that are fair and solidaristic, thereby maximising potential outlets and revenues for such producers and helping them to develop in a sustainable manner. Alter Eco has significantly contributed to develop fair trade by making products available in large retail chains. To do so, they have always set low selling prices while paying high purchase premiums to Great South producers. In a context where retailers launch their own fair trade labels, will Alter Eco be able to sustain their business model, develop their presence in supermarkets and internationalise their activity ?

The Alter Eco case focuses on sustainable development (fair trade in particular), not-for-profit strategies and competitive advantage. The aim of the case discussion is to make students formulate recommendations to Alter Eco's management on how to grow the company. On this basis, the instructor's "teaching agenda" should be to discuss the notion of competitive advantage and to analyse how business strategy concepts and methods fit not-for-profit organizations. The Alter Eco case can also be used to discuss sustainable development and corporate responsibility issues in a context of competition with companies and retailers that pursue classical economic objectives.

Fair trade - Sustainable development - Competitive advantage - Growth - Start-Up - Private labels - Industry analysis - Cost structure.

Business Schools, MBA, Master, MSc, Executive Education

Food Retail

A French version is also available.

Année de la problématique : 2005

Livraison : Livraison par lien de téléchargement

Nombre de pages : 18