5. Individual Problems 16-5
Your pharmaceutical firm is seeking to open up new internationalmarkets by partnering with various local distributors. Thedifferent distributors within a country are stronger with differentmarket segments (hospitals, retail pharmacies, etc.) but also havesubstantial overlap.
In Egypt, you calculate that the annual value created by onedistributor is $90 million per year, but would be $120 million iftwo distributors carried your product line.
Assuming a nonstrategic view of bargaining, you would expect tocapture $______ million of this deal. (Hint: The two distributorsare independent of each other; therefore, you conduct separatenegotiations with each.)
Argentina also has two distributors that add value equivalent tothe value added by the two distributors in Egypt, but both are runby the government.
Assuming a nonstrategic view of bargaining, you would expect tocapture $______ million of this deal.
In Argentina, if you do not reach an agreement with thegovernment distributors, you can set up a less efficientInternet-based distribution system that would generate $30 millionin value to you.
Assuming a nonstrategic view of bargaining, you would expect tocapture $______ million of this deal.
