Executive Briefings

When Parents, Subsidiaries Collide, What Happens to Their Supply Chains?

There are times when global companies with bulging product portfolios have to face an unexpected enemy: themselves. A case in point: the recent discovery of Coca-Cola being sold in Spain without the blessing of the U.S. soft drink giant's local subsidiary, which saw its market invaded by a product that is essentially the same but competing head-on with a lower price. What impact does this "cannibalization" have on the supply chain of the local firm?

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There are times when global companies with bulging product portfolios have to face an unexpected enemy: themselves. A case in point: the recent discovery of Coca-Cola being sold in Spain without the blessing of the U.S. soft drink giant's local subsidiary, which saw its market invaded by a product that is essentially the same but competing head-on with a lower price. What impact does this "cannibalization" have on the supply chain of the local firm?

Read Full Article