LEARNING OBJECTIVES: Understand vertical integration as a continuum from make to buy rather than as a binary choice. Explain why channel players (manufacturers, wholesalers, retailers) often integrate forward or backward with great expectations, only to divest themselves within a few years. Frame vertical integration decisions according to whether owning the channel, or some of its […]

Allianz, a much admired German Insurance Giant, paid what in retrospect was a high price to acquire Dresdner, a prominent investment bank.

LEARNING OBJECTIVES: Explain why manufacturers prefer more coverage, especially in fast-moving consumer goods industries, combined with a downstream channel member that limits its assortment in their product category. Explain why downstream channel members prefer less coverage, combined with a greater assortment in each manufacturer’s product category. Recognize why limited distribution is preferable to brands with […]

In Europe, Royal Canin enjoys a leading position in the dog and cat food market, with a significant market share—more than the multinational brands, such as Nestlé (Friskies, Fido), Mars (Pal, Whiskas), and Colgate (Hills)

LEARNING OBJECTIVES: —Describe the types of retail structures that exist worldwide. —Explain how a retail positioning strategy flows from both cost-side and demand- side factors. —Define the retailers positioning strategy as a set of service outputs delivered to the market. —Recognize important trends and developments on the consumer and channel sides that affect retail management. […]

Zara was founded in Spain in 1975, and in the three decades of its existence, it has built and fine-tuned a particular model of retailing that appears to balance the need to control costs with the need to meet the demands of its fashion-forward, trendy target market.

LEARNING OBJECTIVES: Distinguish between three broad categories of institutions that constitute the wholesaling sector. Define how an independent wholesaler-distributor adds value and explain why this sector is growing. Detail the mechanisms by which channel members join federations or alliances that offer exceptional services while cutting costs. Identify the major distinctions between a wholesaler voluntary group […]

The U.K.-based Co-operative Group is run and owned by its 7 million members. Essentially, it is a family of businesses that incorporates food retailing, financial services, pharmacies, funeral services, legal services, and electrical. The group has around 100,000 employees across the U.K., and has an annual turnover of u.s. $22 billion.