Business, 30.03.2020 21:36 ldpozorski

When Gilded Products planned to start its operations in Upper Medici, an emerging nation, it realized that it would have to set up its own distribution channels. This would be a risky and expensive strategic move. The company had an option of hiring a small supply chain management company, Canopy Logistics, to reach its ultimate customers. However, this would require Canopy Logistics to make huge investments, which would be of no use to it if Gilded Products decided to exit the market. Thus, to gain Canopy Logistics’ confidence, Gilded Products purchased 40 percent of the stock of Canopy Logistics. What does this scenario best illustrate?

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