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.Horizontal supply chain conflict.Verical supply chain conflict.Vertical channel dissonance.Contract re-negotiations.

Answer 1

Answer:

It would result in "Vertical Supply Chain Conflict" with the retailers.

Explanation

All products start their cycle at a factory and end at a store/retailer. This is called "The Marketing Channel". The first level is the factory, second is the wholesaler and the third one is the store. "Horizontal Supply Chain Conflict" or "Horizontal Channel Conflict" is a term that is used when there is a conflict between members of the chain that are at the same level. For example among two wholesalers, if one of them starts selling the same product in the other wholesaler's region, this is called a "Horizontal Chain Conflict". "Vertical Supply Chain Conflict" is used when there is a disagreement among members of the chain that are at different levels. In the question the problem is between the company and the retailers so it is an example of "Vertical Supply Chain Conflict". I hope this was helpful.