Challenge to SME to Survive in Food Dynamic Markets: Innovation and Efficient Networks

The EU food entrepreneurs are facing dramatic changes in the competition arena. Globalization and liberalization processes are offering cheaper food products in international markets, either from countries with better comparative advantages or with more efficient marketing strategies. At the same time, food markets are in a process of continuous segmentation and changes. Consumers are located in different niches, according to socio-demographic variables, cultures and traditions. Some of them respond to price changes while others are more concerned with quality control and food safety. It is on this segment where typical products, traceability and denominations of origin have significant values. SME (Small and Medium Enterprises) have to survive on this competitive scenario using several strategies: focusing their attention on specific consumer segments (aged people, gourmets or ethnic groups), products (typical, denomination of origin) or with more personal attention. Their flexibility to adapt the production process should compensate the lack of economic and human resources and specialization activities. In the 21st century they may survive through adequate strategies, most of them based on several pillars: innovation, tradition and adequate network.