Cooperatives to grow: challenges and opportunities of a virtual purchasing center

The aim of this study is to explain the main threats and opportunities that can be derived from the implementation of a virtual “cooperative purchasing center” in the cooperative sector in Argentina. When we are talking... [ view full abstract ]

The aim of this study is to explain the main threats and opportunities that can be derived from the implementation of a virtual “cooperative purchasing center” in the cooperative sector in Argentina. When we are talking about the concept “cooperative purchasing center”, we are referring to the mechanism that allows common purchases, in order to achieve better trading conditions and strengthen and expedite trade relationship between production cooperatives and/or work and consumption cooperatives and mutuals.
Actually, the market share of consumption cooperatives in Argentina is close to 4.07%, while in 1990 this share was approximately 20% (Mason and Zoppi, 2013). This dramatically drops between this market share 25 years ago and actual figures, drives to the imperative creation of new alternatives to recuperate lost market. This reality, together with Blueprint for a Co -operative decade, motivates the implementation of virtual cooperative central purchasing, promoting cooperation and integration to allow growth and development, under the sixth cooperative principle.
The methodology used for this research is the case study. The results of the analysis identify 7 opportunities and 8 challenges coming from the implementation of a virtual purchasing center in Argentina.