Reference no: EM132759045

Firm AAA is a firm selling household cleaning products through retailers. It has been relying on the big retailers to push sales but the outcomes are mostly uncontrollable, while the smaller retailers which are more cooperative normally provide scattered sales outcomes. In addition, while the bigger retailers are keeping up with the evolving technology such as e-commerce platforms, smaller retailers have not been able to keep up thus sales are not up to the expectation. Firm AAA has identified three solutions to the current situation. Assess the options Firm AAA has identified in light of two leading vertical integration theories provide your recommendation to Firm AAA.

(a) Setting up its own offline distribution channel and developing its own technological infrastructure and e-commerce platforms.

(b) Partnering with third party e-commerce platforms while remaining with current retailers for offline sales.

(c) Setting up its own offline distribution channel and partnering with third party e-commerce platforms for online sales.