Question
Debra is a director of the innovative company Eternal Healing Pty Ltd which specialises in the production and promotion of alternative healing remedies. Their latest
Debra is a director of the innovative company Eternal Healing Pty Ltd which specialises in the production and promotion of alternative healing remedies. Their latest product line includes a highly popular range of crystals and healing guides called 'Crystal Comfort'. The company is recognised as the market leader in this area and has grown rapidly to be a dominant participant in the alternative healing market nationally.
Debra has asked you to make a report concerning the following commercial proposals having particular regard to the provisions and policies of the Competition and Consumer Protection Act 2010 (Cth):
(a) The main competitor to Eternal Healing Pty Ltd is Healthy Spirit Pty Ltd. Both companies presently obtain their crystals from the same supplier, Crystals R us Pty Ltd. Eternal Healing bolds 62% of the market and Healthy Spirit 23%. Eternal Healing wishes to protect and increase their market share and the first proposal is that Eternal Healing approach Crystals R us and inform them that if they wish to keep Eternal Healing's business, they must no longer supply crystals to Healthy Spirit.
Two weeks later, nine of the representatives have increased the price of the CrystaI Comfort product to S50 per item. Three weeks later, Marie's product and public liability insurance is increased substantially and she is advised by her accountant to increase the retail price of her stock by 10%, with the result that she too is offering the Crystal Comfort product for sale at $50 per item.
Explain your answer in detail.
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