blog 2-2 Forces and Competition

After reviewing the website of Mountain Equipment Co-op (MEC), first I have to say their story is very inspiring. A company of that size operating with a goal not to make money, but to provide high quality products and services to their members. Further to that, they do this while being as environmentally responsible as possible, encouraging an active lifestyle, and giving generously to foundations and environmental causes making them a remarkable organization. MEC is a outdoor retail business in Canada operating as a co-op, you become a member by purchasing a five dollar share. The way MEC manages the environmental forces of customers and suppliers is different than any company I have observed.

The first unique aspect is that their members are their customers. A customer as defined on page thirty four of Essentials of Contemporary Management as individuals and groups that buy the goods and services that organizations produce. Now if your customers are also the ones that vote and elect your board members, who ultimately help make the decisions of what products you sell and the direction of the organization, in my opinion it should not be hard to please your customers. Also by being environmentally responsible and by having operating principles to keep prices low not to profit MEC keeps their customers committed to the cause. (I am sure the possible rebate at the end of the year helps with that as well)

Mountain Equipment Co-op does not only focus that they are operating in a ethical and environmental way, they ensure that their suppliers are up to their standards as well. By using a three-layered approach audit system, MEC ensures that the factories, where the products of the suppliers are being manufactured, are not in violation of human rights or other ethical standards of their supplier code of conduct.

Mountain Equipment Co-op is handling their opportunities well by running a business with not for profit ideals, they are able to provide high quality products at reasonable prices. Good selection and good prices have allowed their company to grow from 6 members to 3.3 million. With this large customer base, it has given MEC the opportunity to be selective in finding ethical suppliers and fund many environmental projects. Some of the challenges Mountain Equipment Co-op faces is that in setting such high standards for their suppliers, they have discovered that no one is perfect and many of the factories of suppliers are still in violation of heath and labour laws. The value of their dollar in developing nations in comparison to here in Canada, partnered with obligation to keep their prices low, has meant MEC is buying most of their products from China. This is a trend that is gaining them a lot of criticism from their members, however as a company they are prioritizing and looking how they can maintain their standard, I hope they can find a happy medium and continue to maintain the loyalty of their members.

Mountain Equipment Co-op is truly an interesting company, their goals for the environment and ethical treatment of factory employees is commendable, and they are faced with many challenges, balancing their mandate while trying to maintain a well priced product to their customers.