The Swedish Organic Food Market : A Competitor and Industry Analysis

University essay from Högskolan i Jönköping/IHH, Företagsekonomi; Högskolan i Jönköping/IHH, Företagsekonomi; Högskolan i Jönköping/IHH, Företagsekonomi

Abstract:

The organic food market in Sweden has grown continuously in the last decades. This led many retailers and small stores to start selling organic food as well as extending their organic food assortment and variety extensively. In this thesis our purpose was to analyse the Swedish organic food market in terms of competition and business level strategy. The two main players in the market (ICA and Coop) were chosen to be analysed in more detail as well as a local store (Bikupan). The results of the local store were generalized for other small and local stores in Sweden. This was done to get a better picture of the market and about how the companies in the Swedish organic food market compete with each other.

Our data was collected by doing three semi-structured interviews, two with Coop and one with Bikupan. Furthermore, we sent out one questionnaire to ICA. In the case of Coop, we interviewed the manager for sustainable development and one specific Coop store due its interesting concept “Green Room” where almost only organic food is sold. The answers were then linked with our general findings about the market as well as our theoretical framework and the following findings were made:

  • ICA and Coop are the main competitors followed by Axfood
  • there are not many differences between ICA and Coop
  • competition is to some extent based on price
  • increasing pressure on small, local stores due to the main players’ ever increasing market coverage
  • ICA is closest to be the cost-leader, whereas Coop is somewhat more focusing on differentiation. Small, local stores are truly differentiated compared to Coop and ICA. 

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