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The Power Of Trust In Manufacturer-Retailer Relationships, Nirmalya Kumar

Research Collection Lee Kong Chian School Of Business

Manufacturers and retailers traditionally have seen each other as adversaries, but the benefits generated by trusting relationships between such old foes as Procter & Gamble Company and Wal-Mart Stores show that fear and intimidation may not be the most effective way for manufacturers and retailers to deal with each other after all. Studies of manufacturer-retailer relationships in a variety of industries reveal that exploiting power has three major drawbacks. it can come back to haunt a company if the balance of power changes; victims will ultimately seek ways to resist such exploitation; and working as partners allows retailers and manufacturers …