Question

Estee Lauder Co.now sells most of its flagship products directly online. This choice, made around 2000, resulted in substantial __________ with the various high-end retailers.

Answer 1

Answer: Vertical Supply Channel Conflict

Estee Lauder Co.now sells most of its flagship products directly online. This choice, made around 2000, resulted in substantial __________ with the various high-end retailers.

Horizontal supply chain conflict.

Vertical supply chain conflict.

Vertical channel dissonance.

Contract re-negotiations.

Explanation:

Vertical Supply Channel Conflict occurs between members of different supply channel levels. For example, between a manufacturer and a wholesaler or between a wholesaler and a retailer.

This is the type of conflict that arose from Estee Lauder's decision to sell online directly to customers.

Horizontal Supply Channel Conflict occurs between members of the same channel level. An example is two retailers selling the same brand in the same shopping mall.