Business models analysis of Finnish food retailers - Case K-chain, S-chain and Lidl - How to determine right channel to enter grocery retail market as a new supplier with new products in Finland

Abstract

This thesis is written in sake of understanding the crucial elements for being a successful business in food manufacturing in Finland. In this paper we look at the current food trade market in Finland and then analyze the business models of the three biggest grocery retailers in Finland. We use a business model canvas to understand the business model of the case companies. Therefore this thesis is also a multiple real life case study of three Finnish grocery retailers. The research question tries to determine the right channel to enter grocery retail market for a new supplier with new products in the Finnish market. Moreover, this paper aims to assist Baba Foods (a small food manufacturer) with right strategy on choosing right channel to enter the Finnish grocery market after its one year of operations. For solving the research question we have used interviews with decision makers of various chains and other relevant persons. Additionally, annual reports and journals have been researched to suggest the best channel choice for Baba Foods. Therefore, this study is merely a qualitative research. After this we built up a compatible table to determine right channel for Baba Foods. This compatible table suggested that out of the three biggest grocery retailers K-Chain is the most favorable and suitable retailer and partner for Baba Foods' products. Finally, this study can help also other new and small food manufacturers in various industries to understand the selection process of grocery chains in the food industry in Finland.