The case deals with the two dominant Finnish retailers: S Group and Kesko. S Group is a customer-owned cooperative that provides a unique holding structure, which has a population of 1.7 million (or 70 percent of Finnish households) own 22 regional cooperatives. In turn, the regional cooperatives own SOK, a centralized companies that provide services for the regional cooperatives. During the 1980s and 1990s, S Group lagged far behind the market leader, Kesko. However, since 2005 has held the S group leader … Read more »

The case deals with the two dominant Finnish retailers: S Group and Kesko. S Group is a customer-owned cooperative that provides a unique holding structure, which has a population of 1.7 million (or 70 percent of Finnish households) own 22 regional cooperatives. In turn, the regional cooperatives own SOK, a centralized companies that provide services for the regional cooperatives. During the 1980s and 1990s, S Group lagged far behind the market leader, Kesko. But since 2005, S Group has maintained its leadership position in 2007, it had captured 41 percent of the market while Kesko’s was 33.9 percent. Kesko Plc is a publicly traded company and pursues a model whereby retailer entrepreneurs use their personal funds to invest in stores and operate them completely. The case requires students to consider arise sources of competitive advantage, which clearly different from the company business models.
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from
Ramon Casadesus – Masanell,
Tarun Khanna,
Samuli Skurnik,
Jordan Mitchell
Source: Harvard Business School
39 pages.
Release Date: 12 August 2008. Prod #: 709 409 PDF-ENG
Finland’s S Group: Competing with a Cooperative Approach to Retail HBR case solution

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