Consider the following: IBM has unveiled a series of measures designed to help stamp out grey market activity in its channel. It has harmonised hardware pricing, boosted transparency in its supply chain and is 'systematically extending compliance programmes. They hope this will reduce the scope for arbitrage business in the grey market by minimising regional price differences. The firm has also harmonised pricing on accessories, which will now carry bar codes and serial numbers so it can more effectively monitor the supply chain to detect breaches of the distribution agreement. They have warned their partners they intend to take a hard line and that rule-breakers could see their agreement terminated or face legal action. IBM along with Cisco and HP is a member of the Alliance for Grey Market and Counterfeit Abatement (AGMA), a vendor-led industry body whose objective is to clamp down on the ICT market's unauthorised sector.

Question In your response, consider the following, do you think large international companies should manage grey marketing in the distribution channels through legal means or let the market itself act as a regulator?

Answer rating: 100% (QA)

Managing grey marketing in distribution channels is a complex issue that requires careful consideration of various factors Here are some points to con... View the full answer