Gino SA is a manufacturer of burner units that are sold through exclusive contracts with distributors. As a result, the three merchants significant bargaining power with Gino. A leading boiler manufacturer who currently has to purchase from a dealer, approached Gino to receive OEM treatment (another discount by buying the burner directly from the manufacturer in return for a commitment to a certain percentage of burner by Gino buy). When deciding whether to pursue the … Read more »

Gino SA is a manufacturer of burner units that are sold through exclusive contracts with distributors. As a result, the three merchants significant bargaining power with Gino. A leading boiler manufacturer who currently has to purchase from a dealer, approached Gino to receive OEM treatment (another discount by buying the burner directly from the manufacturer in return for a commitment to a certain percentage of burner by Gino buy). In deciding whether the company is to pursue the first direct OEM relationship, the marketing manager has the impact of its decision on the distributors, competitors, and the company’s corporate governance.
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from
Terry H. German,
Alan Yang Wenchu
Source: Ivey Publishing
17 pages.
Publication Date: Apr 25, 2002. Prod #: 902A13-PDF-ENG
Gino SA: Distribution channel management solution HBR case

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