Global retail business is known for rough competition, low salaries, bad working conditions and big players. Two of these big players, Aldi and Lidl, entered the Swiss market in the last two decades, but Migros and Coop notably still made up about 77% of the retail market share in 2018.They though lost more market share over time when the food market is considered independently. The author of this paper was interested how Migros and Coop with the legal form of cooperatives behave in this competitive market.
The methodology of this research was limited by the availability of data (and the scope of the work). For Aldi and Lidl for example, the two main capitalist competitors of Migros, there is basically no data available; except for minimum wages where they are leading in Switzerland.
This research only delivers pieces to the role of profit for Migros. It focuses on the head organisation, while the 10 regional cooperatives can attribute a different role to profit. It considers what priority Migros attributes to different revenue and cost factors, where qualitative or quantitative data are available. It additionally includes some major critiques of Migros.
Table of Contents
1. Introduction
2. Overview Migros “Group”
3. Margins & governance
4. Compensation & working conditions
5. Priorities & critique
6. Conclusion
Research Objectives and Key Topics
This research investigates how the Migros cooperative navigates the competitive Swiss retail market, focusing on the role of profit, governance structures, and social responsibilities in contrast to capitalist competitors.
- The competitive landscape of the Swiss retail market.
- Governance and structural organization of the Migros cooperative.
- Comparative analysis of financial ratios and profit margins.
- Evaluation of labor practices, minimum wages, and corporate social responsibility.
Excerpt from the Book
Compensation & working conditions
Because retail is a low wage sector and Migros as the biggest private Swiss employer and a cooperative bears special responsibility, wages are of major interest. Due to a lack of reliable data, we can unfortunately only investigate minimum wages. This is unfortunate, since minimum wages are only relevant where applied (probably minority of employees), do not take into account intra-country regional purchasing power differences and other benefits from which employees profit.
Nevertheless, minimum wages dominate the debates in the media and provide an impression of how a firm values its lowest paid employees in direct monetary terms. Minimum wages are also the only available reliable quantitative data to compare Migros and Coop with the three discounters Denner, Aldi and Lidl. The five already made up more than 70% of Swiss food retail in 2017 and clearly dominate the (sub)urban areas.
Summary of Chapters
Introduction: Provides an overview of the Swiss retail market, the competitive environment, and the research focus on Migros as a cooperative entity.
Overview Migros “Group”: Describes the structure of the Migros-Genossenschafts-Bund, including its regional cooperatives, subsidiaries, and various business branches.
Margins & governance: Analyzes financial performance and ratios, comparing Migros with major global and local retail competitors.
Compensation & working conditions: Discusses the significance of minimum wages in the Swiss retail sector and Migros' specific responsibilities as a major employer.
Priorities & critique: Examines Migros' core values, its historical motivation for affordable pricing, and external criticisms regarding its social and business practices.
Conclusion: Summarizes the research findings, highlighting Migros' unique position as a balance between social engagement and market competition.
Keywords
Migros, Cooperative, Swiss Retail, Market Competition, Corporate Governance, Minimum Wage, Retail Margins, Price-Performance, Social Responsibility, Business Strategy, Labor Conditions, Economic Efficiency, Market Share, Coop, Capitalist Enterprises
Frequently Asked Questions
What is the primary focus of this research?
The research examines how the Migros cooperative operates and balances its mandate as a non-profit-oriented organization within a highly competitive, capitalist-driven retail market.
What are the central thematic fields?
The study centers on corporate governance, the financial and social role of profit in cooperatives, labor practices, and the competitive landscape of the Swiss grocery industry.
What is the main research question?
The paper seeks to understand how a large-scale cooperative like Migros behaves and manages competing priorities—such as low prices, social responsibility, and economic survival—compared to purely capitalist competitors.
Which scientific methodology is employed?
The research utilizes a comparative analysis of quantitative data (where available), such as financial ratios and minimum wage benchmarks, supplemented by qualitative assessments of corporate statutes and existing literature.
What topics are covered in the main body?
The main body covers the organizational structure of the Migros Group, comparative financial analysis of retailers, an evaluation of employee compensation, and an exploration of the criticisms leveled against the cooperative.
Which keywords characterize the work?
Key terms include Migros, Cooperative, Swiss Retail, Market Competition, Corporate Governance, Minimum Wage, and Corporate Social Responsibility.
How does Migros differ from capitalist competitors like Aldi or Lidl?
Migros operates under a cooperative legal form, which emphasizes social engagement, regional autonomy, and member ownership, whereas competitors like Aldi or Lidl focus primarily on traditional capitalist profit maximization and efficiency.
What role does the "Migros culture percent" play?
The "Migros culture percent" represents a unique commitment by the cooperative to invest a percentage of its turnover into social, cultural, and educational projects, distinguishing its social contribution from standard corporate strategies.
Does the author conclude that Migros acts purely as a capitalist enterprise?
The author concludes that Migros acts as a "Swiss compromise," incorporating capitalist-like market competition and power usage while retaining unique cooperative features that differentiate it from purely profit-driven firms.
- Arbeit zitieren
- Jan Gygax (Autor:in), 2021, Profit in the 21st Century. Exemplified by the Orange Giant Migros, München, GRIN Verlag, https://www.grin.com/document/1044729
