The seller should eliminate arbitrage and cannibalization

Assignment Help Operation Management
Reference no: EM132092923

When a seller offers a volume discount to a buyer, the seller should eliminate arbitrage and cannibalization.

A) Consider the CPA classes at a bank and their pricing based on volume discounts. Also consider CPA classes offered to general public. Explain if/how arbitrage happens. Explain if/how cannibalization happens.

B) Consider a software licensed to multiple users at a single company and the licensing fee per user has a volume discount. Explain if/how arbitrage happens. Explain if/how cannibalization happens.

C) Consider a commercial building contractor who spends millions of dollars on buying galvanized pipe from a supplier. The supplier sells the galvanized pipes in high volumes to building contractors and in low volumes to repair companies. The contractor buys the pipes with a volume discount. Explain if/how arbitrage happens. Explain if/how cannibalization happens.

D) Consider the three contexts above. In which context arbitrage is more likely to happen? In which context cannibalization is more likely to happen?

Reference no: EM132092923

Questions Cloud

Restaurant interface project : Restaurant interface project. To develop a high value, secure and reliable system, that meets the client needs such as:
Retail clothing outlet that serves the tween market : Scenario: You are the Communications Officer at Cool Cats, a retail clothing outlet that serves the tween market.
Connectivity does not guarantee connection : Connectivity doesn’t guarantee a connection. How do you ensure a connection with your recipient when using lower order communication modes?
What are the advantages of building up plant capacity : What are the advantages of building up plant capacity and what are disadvantages?
The seller should eliminate arbitrage and cannibalization : When a seller offers a volume discount to a buyer, the seller should eliminate arbitrage and cannibalization.
How women might approach managerial decision making : Describe how women might approach managerial decision making differently than men.
What are the meanings of strategic leadership-strategy : What are the meanings of these words - Strategy, sustainable, cometitive advantage, strategic leadership, mission, scenerio planning,
What metrics provide the best data for companies? : What metrics provide the best data for companies?”
Show a list of the three most recent visible threads sorted : Using the provided Thread class, show a list of the 3 most recent visible threads sorted to show the most recently created threads first.

Reviews

Write a Review

Operation Management Questions & Answers

  Analysis like frequency distributions mitigate

One of the biases that has been proposed by Kahneman and Tversky and researched a great deal is the Availability bias. What is the Availability bias? How could using objective data analysis like frequency distributions mitigate the effect of the Avai..

  Where is the bottleneck and what is capacity of cafeteria

Where is the bottleneck? What is the capacity of the cafeteria?

  Analyze them through the lens of strengths-weaknesses

Analyze them through the lens of strengths/weaknesses, both of yourself as an applicant and of the actual texts

  Design is strategic to firms operating in competitive

Please discuss why process design is strategic to firms operating in competitive and uncertain industries. How the transformation phase of OM generates unique value relevant to sustainable competitive advantage.

  Organizational culture-practiced by leadership and workforce

Laub argues that a servant organization “is one in which the characteristics of servant leadership are displayed through the organizational culture and practiced by the leadership and the workforce”.

  Problem regarding the newspapers and magazines

You are just hired by the Barnes and Noble to order the newspapers and magazines. Newspapers are ordered daily. If you order too many, it costs the store $1.50 for each newspaper that is not sold. If you order too few, the store loses sales. Wh..

  About the compensation analyst

Background You are the Compensation Analyst for CQ Manufacturing. The current manager of Information Systems has requested an evaluation of their Office Secretary position. They have provided a narrative of the duties and responsibilities provided by..

  Under what circumstances should international business

Under what circumstances should international business people impose the values of their culture on foreigners with whom they do business? What are two primary sources of information on a given country’s culture? Outline why the culture of a country ..

  Describe mercantilism

Describe mercantilism, and explain why some call it a poor approach to promoting economic development and prosperity.

  What are the advantages of oral and written presentations

Explain why the method selected for each meeting is the appropriate form of communication given the audience.

  What other aspects of ecuadorian culture

What sources about Ecuador should you consult to obtain cultural information about this country that will need to be included in your cultural map? What other aspects of Ecuadorian culture, other than its predominant religion and language, might affe..

  One of the complaints often made about globalization

International Business One of the complaints often made about globalization is that it is diluting, if not destroying, key aspects of national culture.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd