Managing Vertical Relationships Identify a vertical relationship in your company and determine whether it could be managed more profitably by tying, bundling, exclusion, or vertical integration. Clearly identify the source of the profitability (e.g., regulatory evasion, elimination of double markup, better goal alignment, or price discrimination), ...
Herbicide Integration Suppose the herbicide manufacturer mentioned in the chapter can vertically integrate only into home gardening retailing. Would this allow the manufacturer to price discriminate?
Loyalty Payments Intel made large loyalty payments to HP in exchange for HP buying most of their chips from Intel instead of rival AMD. AMD sued Intel under the antitrust laws, and Intel settled the case by paying $1.25 billion to AMD. What incentive conflict was being controlled by these loyalty payments? What advice did Intel ignore when they ado...
144441 Australian cosmetics maker, Eternal Beauty Products, pressures online retailers to either sell goods
Online Cosmetics Australian cosmetics maker, Eternal Beauty Products, pressures online retailers to either sell goods at prices charged by brick and mortar stores or risk being cutoff. If online retailers are paying the same wholesale prices, why would Eternal not want online retailers to charge lower prices?
144440 Stores that sell wedding dresses do not typically permit photos, and do not have tags in the dresses
Wedding Dresses Stores that sell wedding dresses do not typically permit photos, and do not have tags in the dresses that would identify the manufacturer and style type. What is the purpose of these rules? Suggest one other way of accomplishing the same objective.