Question
Your pharmaceutical firm is seeking to open up new international markets by partnering with various local distributors. The different distributors within a country are stronger
Your pharmaceutical firm is seeking to open up new international markets by partnering with various local distributors. The different distributors within a country are stronger with different market segments (hospitals, retail pharmacies, etc.) but also have substantial overlap.
In Egypt, you calculate that the annual value created by one distributor is $240 million per year, but would be $320 million if two distributors carried your product line.
Assuming a nonstrategic view of bargaining, you would expect to capturemillion of this deal. (Hint: The two distributors are independent of each other; therefore, you conduct separate negotiations with each.)
Argentina also has two distributors that add value equivalent to the value-added by the two distributors in Egypt, but both are run by the government.
Assuming a nonstrategic view of bargaining, you would expect to capture million of this deal.
In Argentina, if you do not reach an agreement with the government distributors, you can set up a less efficient Internet-based distribution system that would generate $80 million in value to you.
Assuming a nonstrategic view of bargaining, you would expect to capture million of this deal.
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