Amoco, one of the nation’s largest oil companies, has been forcing a number of its independent service stations to convert from full-service stations offering repair service to convenience stores or “gas only” stations. Thus the highly profitable repair part of the business will no longer be available to those station owners forced to con- vert. The franchised independent dealers have little choice but to give in to Amoco because the oil company typically owns the station’s land and buildings and offers leases of only three years or less. This arrangement appears to vest all of the power with the producer and virtually none with the dealers. Discuss this situation in light of the bases of power and the possible long-term effects on channel relationship.
Answer to relevant Questions“This is really out of bounds,” remarked Lisa Johnston, the buyer of athletic footwear for alarge chain of sporting goods stores. Ms. Johnston was referring to a new policy by Nike, the famous athletic shoe manufacturer, ...Discuss the key strategic questions the channel manager faces when managing the marketing channel. Where does channel strategy “fit” into the marketing mix? Lincoln automobiles, the luxury car division of the Ford Motor Company has fallen on hard times in recent years. Over the decade from 2000 to 2010, Lincoln fell from the top-selling luxury brand in the U.S. all the way down ...In this chapter we discussed a number of conditions that may foster the need for channel design decisions. Name some others.
Post your question