They address contemporary developments and challenges in sales organizations, the challenges a multinational and multiproduct firm
may need to address, using the case study of ABB Robotics, and key texts in the field of marketing organization, then value-based sales, organizing sales and marketing during a process in which a firm has moved from product to solution-oriented sales, the challenges of a change value logic in the managing of the business-to-business sales process, and the balance between structure and people.
But because the components of the hospital multiproduct firm
share the same location and the same name, it is easy to assume that there is a level of homogeneity in management and outcomes that one would not expect in other multiproduct firms
Gervais, unpublished data, 2008; Gervais 2015; Johnson 2012; Kugler and Verhoogen 2012), and has been used in multiproduct firm
settings (e.g., Bernard, Redding, and Schott 2010, 2011).
Suppose the prices of two products of a multiproduct firm
are strategic complements, as they would be for a firm selling differentiated substitutes.
Dynamic oligopoly models lack the case of multiproduct firm
. In productive practice, firms usually produce multiproducts rather than single products to obtain costsaving advantages, cater for the diversity of consumers' tastes, and provide a barrier to entry.
Entry deterrence and entry accommodation strategics of a multiproduct firm
regulated with dynamic price cap.
(1) Proposition 1 in Panzar and Willig (1981) states that economies of scope are sufficient for the existence of multiproduct firms
in a multiproduct competitive equilibrium, and weak economies of scope are necessary for such existence of a multiproduct firm
Strategy and structure in the multiproduct firm
. Academy of Management Review, 12(2), 331-341.
(2) The decision to merge by firms, establishing a multiproduct firm
with two divisions, increases their bargaining strength since when the head of the multiproduct firm
negotiates wages with the union of one division, its disagreement payoff is the profit of the other division when the first one does not produce.
Specifically, common costs are defined as costs that are (efficiently) borne by a multiproduct firm
that cannot be causally attributed to variations in the output of any single product or subset of products.
"Strategy and Structure in the Multiproduct Firm
." Academy of Management Review 12: 331-341.