The Carol Supermarkets: dilemma between purchasing power and competitiveness

Abstract

This teaching case reports how the change in the purchasing power of Carol Supermarkets, in Santa Catarina, was used to provide growth and generate competitiveness, through an effective negotiation policy and inventory management. Purchasing power, at first, raised some concerns. The company encountered growth barriers that required the opening of a branch. Purchasing transactions continued to grow and the opening of a central warehouse also became a necessary and effective tool to improve inventory management. It is expected that, after the discussions, students will be able to understand purchasing strategies as a competitive differential in the retail market, which provides growth and generates competitiveness. As a result, the case is an instrument to demonstrate how the implementation of effective purchasing strategies becomes a competitive differential in the retail market. Consequently, this implantation provides growth in the face of competition. On the other hand, the full management of inventories, marketing channels and points of contact with consumers act and strengthen a company’s purchasing power.