MKT551 (Marketing Channels)
Stephen Kim
Preparation Questions for Cases
* These questions are for your information only. You should add any other
important issue(s) in preparing the case discussion.
1. Xerox: Book-in-Time (Case # 599-119)
1) What value does BIT create in the Distribution Value Chain for books?
2) Who will benefit from Book-in-Time? Who will be threatened?
3) What are the strategic options for Xerox? Pros and Cons of each?
4) What Should Xerox Do?
2. Verklar Austria (Case #KEL037)
1) Why is Verklar’s market share dropping in the Austrian market?
2) How would the Quota System change the way channel flows are performed in
Verklar Austria’s channel?
3) Comment on the efficiency (i.e., cost) and effectiveness (i.e., satisfaction)
implications of implementing the Quota System. Should it be implemented?
4) Will the Quota System improve Verklar Austria’s market share?
5) What potential pitfalls in the Quota System idea should be identified and addressed?
If you do not support the Quota System, what alternative do you suggest?
3. Laura Ashley and Federal Express (Case # 693-050)
1) Evaluate the decision to enter a strategic alliance from the perspective of both Laura
Ashley and Federal Express. What are the real opportunities and risks of this approach?
2) Evaluate the structure of the partnership. Do the financial arrangements make sense?
Is the loose nature of the partnership appropriate, or should a more structured approach
have been taken? What type of leadership was necessary to make such a deal, and
what leadership skills will be necessary to implement it successfully?
3) How likely is it that the partnership will succeed over the long term, and what will it
take for both companies to make it successful? Are there specific organizational or
human resource policy reforms that would enhance LA’s performance?
4) Assume that the partnership is successful. What new strategic capabilities will it
provide for Laura Ashley, and how, specifically, should they be used to expand its
business?
4. Callaway Golf (Case #501-019)
1) What are the strategic resources of Callaway? How valuable are these resources?
How have changes in the market affected the value of these resources?
2) What channel management problems have emerged because of the shorter product
life cycle?
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3) What are the cost/benefits of shortening the product life cycle? Lengthening the
product life cycle?
4) Describe how you would integrate product planning (i.e., life cycle), retail
management programs, and consumer communication plans.
5. Merck-Medco (Case #598-091)
1)
2)
3)
4)
5)
What was the rationale for PBMs?
Does Medco fit with Merck’s strategy?
What does Medco bring to Merck? What are the advantages and disadvantages?
What does Medco get from the Merck acquisition?
Is health management future of the industry?
6. Matching Dell (B) (Case #704-476)
1) How and why did the PC industry come to have such low average profitability?
2) Why has Dell been so successful despite the low average profitability in the PC
industry?
3) How effective have competitors been in responding to the challenge posed by Dell’s
advantage?
4) What should each of Dell’s major rivals (IBM, Compaq, HP, and Gateway) do now?
7. Cisco Systems (Case # 505-006)
1) How have Cisco’s channel evolved in the last 10-15 years? Why have they evolved
that way?
2) What grade would you give Cisco for managing that evolution? Good or bad? Why?
3) Against the background of your answer to questions #1 and #2, how should Cisco
distribute VoIP products? Through Voice VARs? Data VARs? Or both?
4) What are your reactions to the “Pyramid” model advanced in Figure 3 of the case?
What is the core concept of the model? Is there an alternative evolutionary model that
Cisco should adopt?
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