MANAGERIAL ECON.+BUS.STRATEGY (LOOSE)
9th Edition
ISBN: 9781259896422
Author: Baye
Publisher: MCG
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Chapter 13, Problem 20PAA
To determine
To find: The benefit to the customers.
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Bank 1 and Bank 2 are considering entering a compatibility agreement that would permit the users of each bank’s automated teller machines (ATMs) access to the other bank’s ATMs. Bank 1 has a network of branches and ATMs extending from the U.S. to Mexico. Bank 1’s 12 million customers currently have access only to the 10,000 ATMs solely owned by the company on the U.S. While Bank 2’s core account holders are located in Mexico and southwestern portion of the United States, the company is expanding across the United States. Bank 2 has 15 million customers who can use any of its 14,000 ATMs.
Using the idea of network externalities, describe how such an agreement between Bank 1 and Bank 2 would benefit consumers.
What is the business rationale for such a strategy between Bank 1 and Bank 2?
*First section in attached images*
To support its network, Leroy Merlin prefers to build and run its own distribution facilities where possible. During 2015 and 2016, the company partnered with a developer to construct a 100,000-square-meter facility to the south of Moscow. 80% of the company's domestic suppliers are located in the Moscow area, Poulet explains, making the region an important one for both its inbound and outbound supply chain activities.
To protect their purchasing power during the crisis, Russian families switched to cheaper products wherever they could. For Leroy Merlin, that meant a huge demand in its lowest-priced, "basic" product categories. For a company that already operates on an "everyday low price" basis, that meant increased pressure to keep supply chain costs down. Leroy Merlin has also worked hard to accelerate its supply chain, doubling the share of inventory that passes through its cross-dock operations to 43% this year, with plans to increase that to 55%…
Dennis is the International Representative of ABS-CBN
and he is planning to partner with a foreign TV network,
either BBC or Al-Jazeera. He also learned that ABS-
CBN’s closest competitor, GMA 7, is planning to partner
with a foreign TV network either CNN or Fox News. If
ABS-CBN partners with BBC, it will lose $7,000 if GMA
partners with CNN or gain $9000 if GMA 7 partners
with Fox News. If ABS-CBN partners with Al-Jazeera, it
will gain $2,000 if GMA 7 partners with CNN or lose
$4,000 if GMA 7 partners with Fox News. What should
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Chapter 13 Solutions
MANAGERIAL ECON.+BUS.STRATEGY (LOOSE)
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