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Model of the co-operative trade alliance for independent retail networks in Czech Republic

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  • Marek Záboj

    (Ústav marketingu a obchodu, Mendelova univerzita v Brně, Zemědělská 1, 613 00 Brno, Česká republika)

Abstract

The main objective of the contribution is proposal of the model of co-operative trade alliance for independent trade alliances with fast-moving consumer goods (FMCG) in Czech Republic. Reason of the choice of this topic is sustain of variety of retail formats in Czech market in connection with position small and medium sized trade firms in comparison with transnational trade chains. Independent trade firms face to much bigger competitors operating supermarkets and hypermarkets, namely not even in size of sales area, width and depth of the assortment but also in possibility of negotiation of more profitable trade conditions with their suppliers. Effort of these independent trade firms, which operate mostly just in local or maximally regional market, is then mutual co-operation in form of consumer co-operatives, associations, alliances and networks. These groupings then mainly through common trade negotiation and purchase get for much more advantageous delivery and payment conditions from their suppliers. Besides they can participate in mutual financing of using of promotion instruments. Partial aim of the paper is investigation of opinion and willingness of Czech trade alliances with FMCG to utilize the opportunity of mutual co-operation in common trade alliance. Next partial goal is identification of the factors affecting formation of joint co-operative grouping and its structure, eventually definition of entry conditions which should be fulfilled by individual members.The system approach will be used to realize the given objective. This approach appears as the most suitable in consideration of anticipated structure and character of supposed model. The result will be then proposal of model of mutual co-operation between individual trade alliances.

Suggested Citation

  • Marek Záboj, 2011. "Model of the co-operative trade alliance for independent retail networks in Czech Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 59(2), pages 377-384.
    • Handle: RePEc:mup:actaun:actaun_2011059020377
    DOI: 10.11118/actaun201159020377
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    References listed on IDEAS

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    1. Gary Hamel, 1991. "Competition for competence and interpartner learning within international strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 83-103, June.
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