What are the advantages and disadvantages of dual distribution? Independent retailers argue that it is an unfair method of competition. Do you agree or disagree? Explain your answer.
What are the advantages and disadvantages of dual distribution? Independent retailers argue that it is an unfair method of competition. Do you agree or disagree? Explain your answer.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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What are the advantages and disadvantages of dual distribution? Independent retailers argue that it is an unfair method of competition. Do you agree or disagree? Explain your answer.
Transcribed Image Text:dual
Supply-Chain Constraints
• Territorial restrictions
• Limit the geographic area in which a retailer may
resell its merchandise
• Lessen competition between retailers
• Violation of Sherman Antitrust Act
• Dual distribution
• A manufacturer sells to independent retailers and
also through its own retail outlets
• Adversely affects the manufacturer-retailer
relationships
LO 4
Exclusive Dealing
One-way exclusive dealing arrangement
• Retailer has exclusive right to merchandise the
supplier's product in a particular trade area
Two-way exclusive dealing agreement
Supplier offers the retailer:
• Exclusive distribution of a merchandise line/product in
a particular trade area
• Retailer agrees to return the manufacturer's favor
LO 4
Supply-Chain Constraints
Tying agreement
• Seller with a strong product or service requires a
buyer (the retailer) to:
• Purchase a weak product or service as a condition for
buying the
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