Gray market effects and strategies

What is a grey market? What is the impact of grey market?

  • Gray markets are unauthorized sales channels that appear when large price gaps exist between one market and another.
  • Though not illegal, gray markets siphon sales away from authorized distribution channels.
  • Companies can lose revenue and profits to gray markets, but loss isn’t inevitable.
  • In some cases, gray markets open new markets for goods, thereby boosting company revenues overall.

How to combat grey market? 

See the reference readings in the Chapter 12 section.

Gray Market Effects and Strategies

Purpose: With the completion of this assignment, you will:

1. Understand what is gray market 

2. Be able to analyzing the impact of gray market on global business

3. Be able to think strategically as a business professional and to form strategies to protect against gray market

Instruction:

1. Brief introduction 

a. What is gray market? How does it differ from the black market? 

b. What are the causes of gray market?

2. Choose one business or product as an example, please explain how the business is affected by gray market. 

a. Visual: Show a photo of the company or product

b. Analysis: Show statistics, charts, facts….etc.

c. Strategic thinking: What is the impact of gray market on this particular product/business? Who is the winners and losers? Discuss you view points from different perspectives (e.g., the manufacturers/producers, consumers, government…etc.)

3. Reflection and Application: 

a. Is gray market a threat or an opportunity? 

b. Using your term project product as an example, Please provide three strategies to protect your business against gray market.

c. Or using your term project product as an example, how would you take the advantage of gray market to facilitate your global business? 

Submission format: 

1. ppt slides

2. Informative and visual

3. Make a thought provoking/creative/interesting title of your file name.

Due date (please follow the  

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