Escola Universitària d’Enginyeria Tècnica de Telecomunicació La Salle Final Thesis Graduate in Management of Business and Technology INTERVENTION OF SMALL BUSINESSES AGAINST BIG SUPERMARKETS: A Multiple Case Study in: Andorra & La Seu D’Urgell (Spain) Student Promoter MERITXELL EGEA NAVARRO GERMAN ARAGON ACTA DE L'EXAMEN DEL TREBALL FI DE GRAU Meeting of the evaluating panel on this day, the student: D. MERITXELL EGEA NAVARRO Presented their final thesis on the following subject: INTERVENTION OF SMALL BUSINESSES AGAINST BIG SUPERMARKETS: A Multiple Case Study in Andorra & La Seu D’Urgell (Spain) At the end of the presentation and upon answering the questions of the members of the panel, this thesis was awarded the following grade: Barcelona, MEMBER OF THE PANEL MEMBER OF THE PANEL PRESIDENT OF THE PANEL 2 Case management Pere Egea Meritxell Egea Intervention of small businesses against big supermarkets: A Multiple Case Study in: Andorra & La Seu d’Ugell Village (Spain). By Pere Egea and Meritxell Egea -Final Project 2016- Case management Pere Egea Meritxell Egea ABSTRACT The objective of this project for the end of our coursework is to realize a detailed study that will allow us to develop a marketing plan and introduce new technology in small businesses to help them successfully face competition from large supermarkets. Small businesses in La Seu d'Urgell have seen a large decrease in their business since the opening of a large supermarket (Mercadona). The same situation exists in Andorra, but with somewhat less of a negative impact. Therefore, there is a necessity for a detailed study to determine who is aware of this problem and what measures can be taken to correct the problem. The findings of this case study recognize a very negative effect at a global level on small businesses. There must be an important restructuring, at both the internal and external levels to be able to compete successfully with large stores. Keywords: Competence, Demand, Small businesses, Restructuting. -Final Project 2016- 4 Case management Pere Egea Meritxell Egea TABLE OF CONTENTS ABSTRACT .................................................................................................................. 4 LIST OF TABLES AND FIGURES ............................................................................... 7 FIGURES .................................................................................................................................. 7 TABLES .................................................................................................................................... 8 GRAPHS ................................................................................................................................... 8 ACKNOWLEDGEMENTS ............................................................................................ 9 EXECUTE SUMMARY ............................................................................................... 10 WHY DID WE CHOOSE THIS TOPIC? ..................................................................... 11 INTRODUCTION AND PROBLEM STATEMENT ..................................................... 12 LITERATURE REVIEW ............................................................................................. 13 DEFINITION OF COMMERCE .............................................................................................. 13 THE GLOBALIZATION OF MARKETS ................................................................................ 14 BRIEF HISTORY OF SMALL BUSINESS ............................................................................ 15 BRIEF HISTORY OF SUPERMARKETS .............................................................................. 16 COMPARISON: SMALL BUSINESS VS SUPERMARKETS .............................................. 17 HOW OTHER COUNTRIES ARE DEALING WITH THIS PROBLEM ................................. 18 BACKGROUND OF THE CHALLENGE IN ANDORRA ............................................ 19 ANDORRA, THE PYRENEAN COUNTRY ........................................................................... 19 EVOLUTION OF COMMERCE .............................................................................................. 20 COMMERCE NOWADAYS .................................................................................................... 22 CURRENT PRACTICES TO DEAL WITH THE PROBLEM IN ANDORRA .............. 24 BACKGROUND OF THE CHALLENGE IN LA SEU D’URGELL .............................. 26 LA SEU D’URGELL, THE CRADLE OF CHEESES ............................................................ 26 EVOLUTION OF COMMERCE .............................................................................................. 27 COMMERCE NOWADAYS .................................................................................................... 29 CURRENT PRACTICES TO DEAL WITH THE PROBLEM IN LA SEU D’URGELL 30 PRIMARY RESEARCH .............................................................................................. 32 ANALYSIS OF RESULTS ..................................................................................................... 32 ANALYSIS OF THE DIFFERENT ALTERNATIVES .................................................. 42 PROPOSED SOLUTION............................................................................................ 43 PHILOSOPHY ........................................................................................................................ 43 COMPETITIVENESS ..................................................................................................... 43 PROFITABILITY ............................................................................................................ 43 UPDATING .................................................................................................................... 44 COMMERCIAL FOUNDATION ...................................................................................... 44 -Final Project 2016- 5 Case management Pere Egea Meritxell Egea INTERNAL STRUCTURE ...................................................................................................... 45 STRUCTURE OF MANAGEMENT ................................................................................ 45 COMMUNICATION ........................................................................................................ 45 COMPANY FLOW CHART ............................................................................................ 46 OBJECTIVES ................................................................................................................ 47 PRINCIPAL MOTORS ................................................................................................... 47 CONCLUSIONS ......................................................................................................... 54 APPENDIX ................................................................................................................. 55 LITERATE REVIEW ............................................................................................................... 55 CHARACTERISTICS OF SMALL BUSINESS ............................................................... 55 CHARACTERISTICS OF SUPERMARKETS ................................................................. 56 BACKGROUND OF THE CHALLENGE IN ANDORRA ...................................................... 57 HISTORY, INSTITUTIONAL ORGANIZATION, ECONOMY AND SOCIETY OF ANDORRA ..................................................................................................................... 57 CURRENT PRACTICES TO DEAL WITH THE PROBLEM IN ANDORRA ........................ 58 PEDESTRIAN STREET ................................................................................................. 58 THE CREATION OF ANDORRA SHOPPING FESTIVAL .............................................. 59 THE CREATION OF VIVAND ........................................................................................ 60 THE THYSSEN COLLECTION ...................................................................................... 61 THE FERRIS WHEEL .................................................................................................... 62 THE “CIRQUE DU SOLEIL” ........................................................................................... 63 GRANDAVALIRA AND THE WORLD CUP ................................................................... 64 MOUNTAIN BIKE & TRIALS WORLD CHAMPIONSHIPS ............................................. 65 BACKGROUND OF THE CHALLENGE IN LA SEU D’URGELL ....................................... 66 HISTORY, INSTITUTIONAL ORGANIZATION, ECONOMY AND SOCIETY OF LA SEU D’URGELL ..................................................................................................................... 66 CURRENT PRACTICES TO DEAL WITH THE PROBLEM IN LA SEU D’URGELL ......... 67 REPRESENTATIONS OF THE “RETABLO DE SAN ERMENGOL” .............................. 67 SEASON OF THEATER AND DANCE .......................................................................... 68 MEDIEVAL MARKET OF “CANONIGOS” ...................................................................... 69 TOWN FESTIVAL .......................................................................................................... 70 OPEN AIR THURSDAYS............................................................................................... 71 PRIMARY RESEARCH .........................................................................................................