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Case
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Reference no. 9A96A002
Subject category: Marketing
Authors: John R Kennedy
Published by: Ivey Publishing
Originally published in: 1996
Version: 1998-10-16
Length: 14 pages
Data source: Field research

Abstract

A high end modern-design Austrian furniture retailer is under price and margin pressures for a number of reasons. A key reason for the margin pressure is that foreign suppliers, in an attempt to generate higher export sales, have moved to agents rather than selling direct. The Austrian retailer, together with a small group of individuals in the retail furniture business, has developed a buying group concept that the group believes will enable them to negotiate direct buying at better prices. However, they are unsure of the acceptance of the concept by the very individualistic owners of the single unit firms that make up most of this segment of Austrian furniture retailing.
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Abstract

A high end modern-design Austrian furniture retailer is under price and margin pressures for a number of reasons. A key reason for the margin pressure is that foreign suppliers, in an attempt to generate higher export sales, have moved to agents rather than selling direct. The Austrian retailer, together with a small group of individuals in the retail furniture business, has developed a buying group concept that the group believes will enable them to negotiate direct buying at better prices. However, they are unsure of the acceptance of the concept by the very individualistic owners of the single unit firms that make up most of this segment of Austrian furniture retailing.

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