FROM MIX MANAGEMENT TO VALUE CO-CREATION: AN ANALYSIS OF STRATEGIC ADVANTAGE IN PREMIUM RETAIL THROUGH THE APOLÓNIA CASE STUDY

Abstract

This article goes beyond the conventional analysis of the retailing-mix to investigate how strategy fosters value co-creation and sustains competitive advantage in the premium food retail segment. Using Service-Dominant Logic (S-D Logic) as the theoretical lens, it presents a descriptive and in-depth case analysis of Apolónia Supermarkets, a leading family-owned retail brand in Portugal. The qualitative methodology is based on a single case study, drawing on data from document analysis, direct observation, and the company’s foundational philosophy. The findings reveal that Apolónia’s premium positioning, which generates revenues exceeding 55 million euros, is not merely the outcome of marketing variables, but rather an emergent process of integrating operant resources (employees’ specialised know-how) and operand resources (exclusive product assortment and in-store environment). This integration enables a superior value co-creation experience with the customer, validating its mission of “offering a distinctive shopping experience.” The study contributes to the literature by applying S-D Logic to a premium food retail context, proposing a conceptual model that frames the retailing-mix as a service ecosystem.