MIT Sloan Management Review

What used to be a matter of finding and purchasing goods and services at the most favorable price has changed. At some companies, procurement has become closely intertwined with strategic decision making and board policy at the highest levels of the organization.

Many executives may feel that they have a pretty good grasp of the reasons why people make or purchase counterfeit goods. In effect, these senior managers rely on their own values and their understanding of business models to form conclusions about counterfeiting and to develop strategies to combat it.

Young consumers have been notoriously difficult for advertisers to reach. Mobile marketing might provide the answer, but only if companies understand some basic principles.

The design of a corporate portfolio should be based primarily on its strategic intent and desired competitive impact, that is, on how a select set of market positions builds a platform for growth while influencing the behavior of rivals and the structure of the industry.

By sourcing and integrating knowledge from dispersed geographic locations, companies can generate more innovations of higher value and lower cost.

Gray market goods — brand name products sold through unauthorized channels — are an increasing threat to multinational companies. The authors present a framework to help select the right approach to coordinating price-setting decisions on the basis of a subsidiary’s local resources and the complexity of a product’s market. Examples of price coordination methods are provided.