Gray market goods are brand products sold through unauthorized channels. Gray markets have recently become more threatening to the multinational companies in the increasing number of global products that are available and easily accessible information about the price of them. The authors present a framework for selecting the correct approach to the gray market threat by coordinating pricing decisions based on local resources and a subsidiary of the product market. Using examples from their sample of companies that have dealt with the gray market, the authors show how the methods of price coordination were implemented. "Hide
by Gert Assmus, Carsten Wiese Source: MIT Sloan Management Review 13 pages. Publication Date: April 1, 1995. Prod. #: SMR016-PDF-ENG