HomeResearch & Knowledgeback to HomeMarketingback to Research & KnowledgeMigros: Is health care the remedy for retail?back to Marketing

Case Study

Migros: Is health care the remedy for retail?

By Stefan Michel, Renaud Falgas, Jan Kundert, Ashmeet Singh and Hermance de la Bastide

15 pages

April 2021

Order this case study

Reference: IMD-7-2226

As Switzerland’s largest retailer, Migros is operating in an industry with negative growth, sales developing towards online and fierce competition. The Swiss healthcare industry on the other hand is growing with an average growth of 3.0% over the last 10 years, with a growing importance on household budgets, making up for 12% of GDP. Migros operates with an organically grown structure, regrouping 10 regional cooperatives, which are owned by 2.2.m members (Swiss residents) and gathered under the Federation of Migros Cooperatives (MGB) which acts as headquarters. According to the vision of its founder, Gottlieb Duttweiler, the group is pursuing a social mission and profitability targets are set defensively. Since 2015, with the acquisition of Medbase, the group started building a footprint in healthcare, gradually expanding with the acquisition of paramedical services and pharmacy chains. The company announced to further expand its footprint by organic expansion whilst it started a strategic partnership with a health insurer. The company disposes of key capabilities such as reach and brand awareness which can be leveraged to make an impact in the health industry. In its current form, the health arm is being developed as a separate vehicle (Medbase) and kept away from the Migros brand. There is a conscious direction to minimize damage to the Migros brand in case there is a strategy shift in the future. The healthcare industry is growing rapidly but the market has significant inefficiencies and needs an overhaul to remain sustainable. It is a high margin business as compared to the retail industry and also comes with the potential to position Migros as the provider of a single-owned, health insurance solution which could serve as a catalyst to a necessary transformation of Migros.

Learning Objective

Assessing the strategic initiative by means of important strategy frameworks: Value constellation, Quest framework for transformations, PESTEL and Grant’s framework for appraising resources and capabilities.

Keywords

Marketing, Strategy, Retail, Healthcare, Transformation, Diversification, Good Health, Well-being

Settings

Switzerland
Migros, Consumer Services, Retail, Healthcare
current

Type

Published Sources

Available Languages

English

Related material

Teaching note

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Article

Taking political risk out of the equation - David Bach

With half the world going to the polls this year, how do businesses manage political risk? IMD’s David Bach suggests businesses must look beyond th...

Where Mario Draghi’s €800bn industrial strategy for Europe falls short

The former Italian premier and ECB president’s call for massive EU investment is a wake-up call to Europe’s economic stagnation. But can the contin...

Where Mario Draghi’s €800bn industrial strategy for Europe falls short

The former Italian premier and ECB president’s call for massive EU investment is a wake-up call to Europe’s economic stagnation. But can the contin...

Embedding responsible innovation in corporate strategy

Innovation is a core element in the business toolbox. A new framework is helping corporate leaders integrate social sustainability in their innovat...

Innovation Sustainability Strategy

By Bala Mulloth, Jill Kickul and Tatiana Iakovleva

in I by IMD

9 September 2024

Article

Generational wealth: Embracing "Lotus" model for family business succession

There is a Chinese saying that wealth does not last beyond three generations, and the reality is that sustaining family businesses is a significant...

Family Business Strategy Organizational Design

By Marleen Dieleman

in The Edge Malaysia

5 September 2024

Video

Embracing circularity - Long-term profitability

Julia Binder and Manuel Braun delve into why a circular approach to business can help build more resilience and boost profitability.

Strategy

By Julia Binder and Manuel Braun

in I by IMD

Video

Embracing circularity - Long-term profitability

Julia Binder and Manuel Braun delve into why a circular approach to business can help build more resilience and boost profitability.

Strategy

By Julia Binder and Manuel Braun

in I by IMD

Article

Abstract thinking: how artworks can sharpen decision-making

Peter Lorange explains how artworks support his decision-making process and can also help new businesses thrive.

Decision Making Strategy

By Peter Lorange

in I by IMD

Article

How a new approach to demand planning can redefine success

Demand Planning Key Performance Indicators (KPIs) are frequently criticized for being too complex or irrelevant. However, an emerging approach is g...

Strategy

By Ralf W. Seifert, Richard Markoff and Matthew Spooner

in I by IMD

Article

How a new approach to demand planning can redefine success

Demand Planning Key Performance Indicators (KPIs) are frequently criticized for being too complex or irrelevant. However, an emerging approach is g...

Strategy Supply Chain

By Ralf W. Seifert, Richard Markoff and Matthew Spooner

in I by IMD

5 August 2024

Embedding responsible innovation in corporate strategy

By Bala Mulloth Jill Kickul and Tatiana Iakovleva
in I by IMD 9 September 2024

Summary

Innovation is a core element in the business toolbox. A new framework is helping corporate leaders integrate social sustainability in their innovat...

Contact

Research Information & Knowledge Hub for additional information on IMD publications