Competing with Gray Markets Harvard Case Solution & Analysis

In recent years, the gray market - in which the products of the company is sold or resold through unauthorized dealers - have become commonplace. They exist for physical products (sawnwood and electronic components) and intangible assets (broadcast signals, IPO); bulk (vehicles and heavy construction equipment) and for light, easily shipped products (watches and cosmetics), for simple (health and beauty aids) and life-saving (prescription drugs). The gray market is not going away any time soon. Although the tides, as exchange rates, the difference in price and changes in the conditions of delivery, studies show increases in the incidence and volume of gray market. In many cases, their sales ahead of the authorized sales. Inability to compete with the gray market could harm firms and industries. Unfortunately, because it is so difficult to obtain data on the gray market activity and what firms are doing to deal with it, there is little published guidance to help managers. Sales of original products in the wrong place, or through the channel, which presents unique challenges for companies. But there is a unique solution that can be successfully managed. Using several examples that show the scale and complexity of the gray market, the authors explain how managers can use the framework, based on sensing, speed and weight control it. They also point to scenarios in which the gray market is actually useful and should be tolerated. "Hide
by Kersi D. Antia, All Bergen, Shantanu Dutta Source: MIT Sloan Management Review 9 pages. Publication Date: 01 Oct 2004. Prod. #: SMR155-PDF-ENG

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