Market power and performance: A cross-industry analysis of manufacturers and retailers

Abstract

The The ideal ideal of of a a system system in in which which market market values values alone alone control, control, is is impossible impossible of of realization realizationbecause goods always move through a power structure and not through the neutral type of because because goods goods always always move move through through a a power power structure structure and and not not through through the the neutral neutral type type of of facility which may be suggested by the term "marketing channel. "

Power in distribution channels — Supplier assortment strategy for balancing power

“…In addition to the research about power conducted within the field of interorganizational relationships, this paper includes literature on the subject of power from disciplines such as sociology (Emerson, 1962;Cook and Emerson, 1978), behavioral science (Dahl, 1957;French and Raven, 1968) and economics (Bowles and Gintis, 1993;Ailawadi et al, 1995).…”

“…Inspired by economic theory, management scholars make a connection between power and profitability for actors in a distribution channel (Galbraith and Stiles, 1983;Ailawadi et al, 1995;Cook and Henderson, 1998;Collins, 2002). Increasing market power enables an actor to increase relative profitability.…”

“…The power position is consequently expected to be related to firm performance (e.g. Farris and Ailawadi, 1992;Ailawadi et al, 1995;Messinger and Narasimhan, 1995;Ailawadi, 2001). Others argue that the result of a power situation also induce non-financial changes, such as altering actors' behaviors (French and Raven, 1968;Wilkinson, 1996;Leonidou et al, 2008).…”

“…Explorations of power balance and its consequences for supplier-retailer relationships often describe power balance or imbalance at a certain point in time (e.g. Ailawadi et al, 1995;Hingley, 2005). Our study draws from this, but also considers the dynamic effects on the change in the power balance between a supplier and a retailer.…”

Is category management in small supermarkets worth the effort?

“…However, it is important to note that independent retailers that own small supermarkets in emerging markets, such as Brazil, are under increasing pressure. Ailawadi, Borin and Farris (1995) found that some large retailers are gaining power over other retailers. As global retailers are also growing their business in emerging markets, independent supermarkets are struggling.…”