For its part, SEMI, as the industry association connecting the electronics value chain, is well-positioned to bring together member companies and public actors to address key challenges facing the sector.
The firm has been striving to improve its market share in the state of Bolster electronics, which is the fastest growing state in Canada. National Electronics' presence in the state is minimal.
Since last five years, National Electronics has been indifferent to the need for increased market penetration in the area. In order to increase its market share in the state of Alberta, retaining a key dealer like Vickers is vital to the business.
Vickers not only possess the functional capabilities required for smooth operation of the business, but they have also maintained excellent relationship with customers. They have been able to manage their business along with bearing the responsibilities equivalent to that of a distributor for the region.
Under these circumstances, Vickers' demand for distributorship is not irrational.
At the same time, Vickers has been focusing more on their demand for distributor pricing and not on distributorship. Awarding distributor pricing would imply a gain of 10 percentage basis points refer Exhibit 1 to Vickers and an equal loss to the Bolsters'. It may also be followed by a similar demand from other dealers.
However, Bolster can tackle those requests by stating Vickers' added responsibilities and outstanding performance in the past years. Bolster inhad already denied Vickers' request of distributorship in Northern Alberta.
So it is in Bolster's interest to consider Vickers' demand for distributor pricing. At the same time safeguarding the interests of National Distributors by restricting Vickers' market is of paramount importance. Finding an appropriate middle ground like a territorial distributorship is the need of the hour.
However it is important to note that even the three other major suppliers follow the policy of routing through National Distributors, hence Vickers might not land up with distributorship even with other firms.
However, Bolster should appreciate Vickers' efforts by offering them a reasonable discount.Bolster Electronics: Dealing with Dealer Demands case analysis, Bolster Electronics: Dealing with Dealer Demands case study solution, Bolster Electronics: Dealing with Dealer Demands xls file, Bolster Electronics: Dealing with Dealer Demands excel file, Subjects Covered Entrepreneurship Marketing by Michael Taylor, Mark Vandenbosch Source: Richard Ivey School of Business .
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