Tuesday, May 28, 2013

Week 9 - Channel Conflict


Hey everyone this week is all about channel conflict between brands and their sellers in the modern age.


One major channel conflict that headlined the news last year (2012) , was one between Acer and Microsoft, concerning a new line of products to compete with Apple.

click the link to read more http://in.reuters.com/article/2012/06/21/us-acer-idINBRE85K17Y20120621




Despite the initial criticism from many in the industry, in the long run Microsoft made a long-term decision that resulted in the expansion of their  services and products. 


It also provided potential to increase consumers in the market of portable computers.

 Microsoft's decision empowered consumers to a degree by offering a option different to the portable products of Apple. 


Channel conflict is evident in everyday life with many things, predominantly that of fast food and fast food chains. This is visible in Pizza Hut/Dominoes along with smaller businesses, McDonalds/KFC.


Especially the Burger King and Hungry Jacks joint venture in Australia, originally Burger King was willing to let the franchise hungry Jacks open stores in Australia with their products, but then they changed their mind, went behind their backs and tried to steal their business , to which Burger King were determined to terminate the franchise agreement.


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