Broad marketing and strategic issues:
● the challenge of global competition
● the trend towards supplier rationalization
● the role of product quality in gaining competitive advantage.
Relationship marketing issues:
● the growth of network competition
● the importance of supplier development as a key business process
● the ingredients for successful supplier associations.
Since the inauguration of the Trico Supplier Association, significant
improvements in product quality, delivery reliability and cost have
been achieved at each step in the supply chain. This has signifi-
cantly enhanced the competitiveness of Trico and its network of
suppliers.
Case 3.2: CafédirectTM: The building of a unique coffee
brand
This case was written by Keith Thompson of Silsoe College,
Cranfield University and Professor Simon Knox of Cranfield School
of Management.
Abstract
This case study describes the formation and development of
Cafédirect, which, as a virtual company consisting of four charity
partners, successfully launched the Cafédirect ground coffee brand
with the full support of the major UK supermarket chains. The
primary purpose of this virtual enterprise was to bring together the
skills and expertise necessary to enable Third World coffee produc-
ers to achieve a higher price for their product. To achieve this goal
the alliance partners recognized the need to build strong supply
chain relationships from the farmers through to the end consumer.
Learning points
Some of the key learning points emerging from this case are: the way
in which a virtual company can be created through synergetic alliance
partnerships; the importance of establishing appropriate relationships
The supplier and alliance market domain 179