Subject category:
Marketing
Published by:
Ivey Publishing
Version: 2006-01-19
Length: 17 pages
Data source: Field research
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Abstract
Gino SA was a major European-based manufacturer of burner units that are sold in China through exclusive contracts with three distributors. As a result, the three Chinese distributors have significant bargaining power with Gino. A leading boiler manufacturer, who is currently purchasing through a distributor, has approached Gino to receive OEM (Original equipment manufacturer) treatment (a further discount by purchasing the burners direct from the manufacturer, in return for a commitment to purchase a percentage of their burners from Gino). In deciding whether or not to pursue the company''s first direct OEM relationship, the marketing manager must consider the impact of his decision on the distributors, the competition and the company''s corporate management. There is a Simplified Chinese version available ''9B02AC13''. There is a Traditional Chinese version available ''9B02AT13''.
About
Abstract
Gino SA was a major European-based manufacturer of burner units that are sold in China through exclusive contracts with three distributors. As a result, the three Chinese distributors have significant bargaining power with Gino. A leading boiler manufacturer, who is currently purchasing through a distributor, has approached Gino to receive OEM (Original equipment manufacturer) treatment (a further discount by purchasing the burners direct from the manufacturer, in return for a commitment to purchase a percentage of their burners from Gino). In deciding whether or not to pursue the company''s first direct OEM relationship, the marketing manager must consider the impact of his decision on the distributors, the competition and the company''s corporate management. There is a Simplified Chinese version available ''9B02AC13''. There is a Traditional Chinese version available ''9B02AT13''.