2-2 -- Forces and Competition

For today's Blog entry I have decided to write about "Mountain Equipment Co-op" (MEC) and the company's task environment. In particular I will be discussing customers and suppliers as well as Mountain Equipment co-op's managing of opportunities and challenges.

Source: http://www.fritzcartoons.com/camp-food/

The way it all started for the six founders of Mountain Equipment co-op is probably the biggest secret to the company's more than 40 year success story. All six of them started the company because they had to procure their outdoor gear across the Canadian border in Seattle. There was no competitive supplier in Vancouver to be found so they decided to start a Co-op. Being customers themselves, they understood from day one what outdoor enthusiasts are looking for and, more importantly, missing out on! 
By starting a co-op where every customer is a owner at the same time, they got customers involved in the business and sharing a common goal - to have the business succeed. This way of doing business allows the organization to be in touch and close to it's customers, knowing exactly what they demand.
It had given MEC the kind of word-of-mouth advertisement early on among outdoor fans to grow rapidly. Students who were short on cash and looking for great weekends and summers in the woods were able to participate in the co-op at a very low cost and get their gear at fantastic prices. A win-win situation if you will.

Source: Youtube.com

The founders of MEC used the store from which they used to purchase their gear from as the company's supplier. Great emphasize was, and still is, put on products that is manufactured in a sustainable way. The procurement policy of MEC focuses on factories with safe working conditions, legal working hours and reasonable pay. Suppliers and factories are audited on a regular basis and results are reviewed by the board of directors. I was positively surprised how honest MEC reports about problems in factories. They do not hesitate to say that there are many problems in asian factories, but even Canadian operations have their problems as well. I like the attitude of the company to openly share problems, and tell it's stakeholders that they are aware that conditions aren't perfect, but they do offer help to continuously improve these conditions.
One of the initiatives by MEC is a confidential hotline for factory workers to report infractions.

Driven by enthusiastic volunteers who gave the company a big push in the first three years, MEC has grown to 3.3 million members and a stunning $261 million in annual sales.
From what I have researched about MEC, I think this company is going in the right direction. I find it amazing how this company has evolved over the past 40 years and with society becoming more aware of environmental issues and making sustainable choices, MEC is doing the right things while facing this new thinking of it's customer as can bee seen in this video:

A recent smart move by MEC was to team up with Parks Canada to bring the world of camping closer to people who are not yet outdoor enthusiasts but might find joy in this kind of activity.
While most people are still tight on money after the recent recession, this could be a great opportunity to attract new clients who will spend future vacations in Canada, in a tent instead of flying to a far away beach and spending big bucks on all-inclusive vacations.

See the canada.com news article here.

As far as challenges go, I am impressed how this company started with a capital of only $65 and it shows us how determined the employees and managers are, to make things work even if the odds might be against them. As mentioned above, MEC is refreshingly honest about the challenges they face with suppliers and manufacturers, which proves that they are committed to face challenges and change things for the better.

Sources:
www.mec.ca retrieved June 5th, 2012
www.canada.com retrieved June 5th, 2012
http://www.fritzcartoons.com/camp-food/ retrieved June 5th, 2012