Richard Branson and the Virgin Group Case Study

Richard Branson and the Virgin Group Case Study

Assessment Prompt:
You are required to read the case on Richard Branson and the Virgin Group and prepare a 12-14 minute board-level PowerPoint presentation that addresses the following questions (support your answer in details in the Notes page of the slide):
1. What common resources and capabilities link the separate Virgin companies? (30%)
2. Which business if any should Branson consider divesting? What criteria should he use in deciding what new diversification strategy to pursue? (40%)
3. What changes in the organisational structure and management systems of the Virgin Group would you recommend? (30%)

Purpose of the Assessment
The purpose of this assignment is to
a) test the student’s knowledge of the core concepts, models and frameworks taught in the module and relevant to the strategy process
b) allow the student to apply their learning in the module to date in a case study analysis and to present their findings in a high-level board manner that captures the key issues

This case study is based on Case 20: The Virgin Group in 2015 in the book in Robert M. Grant’s book Contemporary Strategy Analysis. The case study touches on competitive strategy and innovation, strategic management.

The sample solution is presented in a PowerPoint Presentation with speaker notes (at the bottom of each slide).


  • Introduction
  • Resources and capabilities
  • Virgin companies shared resources and capabilities
  • Divesting criteria and businesses to divest
  • New diversification strategy and decision criteria
  • Organisational structure change recommendations
  • Management systems change recommendations

Richard Branson and the Virgin Group Case Study


The Virgin Group was established by renowned entrepreneur, Richard Branson. The history of the group can be traced back to 1968 when Branson formed the Student magazine after dropping out of school. Over the years, The Virgin Group has grown to become a highly diversified organisation with operations in several industry segments and countries. The group so far operates in the UK, the United States, Australia, Russia, South Africa, and Canada among several others.  Some of the areas the group mainly focuses on are Telecoms and Media, Music and Entertainment, Financial Services, Travel and Leisure, and Health & Wellness (Virgin Group 2017).

The Group boasts of owning hundreds of companies directly or through its subsidiaries. It also boasts of having holding companies in seven main business categories. In addition, it has a stake in several companies, such stake acquired through the formation of joint ventures with other corporations.

Virgin Group has a strong asset base and its success has partly been attributed to the reputation and celebrity status of its founder, Richard Branson. Some of the Group’s notable assets include its fleets of airplanes, trains, and megastores. In addition to these, it has several resources including a strong brand name, a good reputation, talented human resources, and finances. In combination, these resources have helped the group develop capabilities and competencies in different areas. Continue reading

Harley Davidson Resources Capabilities

This article attempts to answer the following questions:
Q1. What are the resources and capabilities of Harley-Davidson? And how do they grant the firm competitive advantage to compete in the motorcycle industry? -Harley-Davidson Resources Capabilities
Q2/ How effectively Harley Davidson’s strategy is implemented and how the firm exploit its key strengths while protecting itself from its key weaknesses?
Q3. What threats to its continuing success does Harley Davidson face, and how should it respond to current & future challenges?

Case study source: Robert M. Grant.  Contemporary Strategy Analysis.

Harley Davidson’s Resources, Capabilities, Strategy and Threats

Resources have been defined as inputs into the production process (Grant, 1991) and as the productive assets owned by the firm (Grant, 2016). Based on these definitions, resources are basically what the firm has and that it can use to create value. Resources can be tangible, intangible, or human as noted by Grant (2016). Tangible resources are resources that can be touched, such as financial resources (like cash, securities, and borrowing capacity) and physical items (like land, plant, equipment and mineral reserves). Intangible resources are resources that cannot be touched and include such things as reputation (brand and relationships), position, technology (such as patents and copyrights) and culture. Human resources include skills or know-how and productive effort offered by the firm’s employees (Grant, 2016). It also includes motivation and capacity for communication. It is worth noting that the firm does not own its workers but it purchases their services through employment contracts. On their own, or in combination with other resources to form capabilities, resources can be sources of competitive advantage (Edwards, 2014).

An analysis of the internal environment of Harley-Davidson reveals that the firm has numerous resources. One of the resources the company has is its brand. In this regard, Harley-Davidson has a good reputation which has greatly contributed to its success in the market (Grant, 2016) … continue

According to Grant (2016), strategy is concerned with matching company’s resources and capabilities to the opportunities that emerge in the external environment. While in agreement with this notion, David (2011) notes that although a strategy can be good or effective, its implementation can be poor or ineffective. Harley-Davidson sought to achieve competitive advantage and higher sales by developing and implementing several strategies. One of Harley’s key strategies was that it sold a unique Harley-Davidson experience rather than motorcycles (Grant, 2016). … continue

Based on Porter’s five forces model, factors such as bargaining power of supplies, bargaining power of buyers, threat of substitutes, and the threat of new entrants can threaten the success and profitability of a business (Mille, et al. 2011; Porter, 2017). Harley faces the threat of new entrants such as witnessed in the entry of Excelsior, Polaris (Victory), and Indian into the motorcycles market. These and other new entrants have the potential to eat into Harley’s market share in different markets, thereby reducing the company’s sales and profitability. … continue

Harley Davidson Resources Capabilities

Harwell Zest Energy Drink

Assignment Brief:
Harwell group expresses their gratitude for the last advice you provided when they were venturing into the food and drinks business. Most of the useful advice given were taken on board and they are glad to announce that ‘Zest’, the canned energy drink is performing well in the market and gaining considerable market share within the competition. Again, Lewis and Rebecca have asked for your advice regarding their current investments going forward. Apart from the energy drink business, the other businesses (fashion, sports, events and fitness) have been in existence over 10 years and sales figures are beginning to fluctuate and perhaps dwindle. Particularly, the fashion business has been rescued twice by the sports business which appears to still be doing very well compared to others. In line with current trends, sales and marketing process systems for the entire group are about to be changed to a more responsive system which the IT department claims would enhance processing and delivery. Finally, on the new business (Zest), although, so far, market share has been increasing based on increasing sales figures, there is a need to sustain, and in fact increase this figure if the business would remain sustainable over the coming years – Harwell Zest Energy Drink.

Based on this information, Harwell group has asked for some thoughts and advice on the followings. Meanwhile, they also request that you reflect on your past advice as this may be useful in providing some fresh advice based on their current circumstances.
1. What stage of the product life cycle do you think the fashion business is currently at, based on its present circumstance? Please provide convincing justifications for your thoughts. Can you also advice on next steps?
2. Based on the strategic choices available to Harwell group, critically review a minimum of three strategic management models.
3. Advice on how consumers can become attached and remain loyal to ‘Zest’ over other energy drinks.
4. Provide three clear recommendations on how Harwell group can change its system and manage the change management process as effectively as possible and avoid disruptions to its current sales and marketing during the change process.
You are allowed to make reasonable assumptions stating clear reasons for these if you need to do so. 

Harwell Group Business Strategy


Harwell Group is a company based in Scotland that so far has four businesses (sports, events, fitness, and fashion). Considering that it is experiencing reduced profits in these business areas and especially fashion, the business is considering the option of entering the energy drinks market. This paper reflects on previous recommendations made to the group and goes further to discuss the other strategic options that the company can take given its current situation.  

Reflection on Previous Advice and Recommendations

Based on the results of a pestle analysis done with respect to the energy drinks market, it was recommended that the Harwell Group go ahead with its plan to venture into the energy drinks business. This recommendation was made considering that the political and economic environments of the UK are stable and household spending has only slightly reduced in the wake of Brexit. The technological, legal, and environmental conditions prevailing in the country with respect to the energy drinks market were also found to be favourable. In addition, the pestle analysis revealed that the demand for energy drinks in the UK is high and growing while supply of the product is low, the market having a few major players.

Considering the social, legal and environmental factors, it was recommended that Harwell Group should especially target the young and middle aged adults as its primary market when it ventures into the energy drinks business. The company should also focus on producing energy drinks that will be marketed as a more healthy option; energy drinks with low sugar content. Based on the results of the Ansoff Matrix, (Pierce 2009), it was recommended that the company should assume diversification as its growth strategy. This strategy option was settled on considering that the company seeks to introduce a new product (in addition to other of its already existing products) into a potentially new market.

Key Assumptions

In the following sections, Harwell Group and its businesses will be analysed based on a number of key assumptions. One assumption will be that Harwell Group is financially stable but has limited resources to invest in all its other businesses after investing into the energy drinks business.  This assumption is held considering that the company has several businesses most of which have been profitable in the past allowing the company to save for future investments. The company so far has a net worth of £6.7 million, indicating that it has the capacity to raise the resources required to venture into the production and marketing of energy drinks.

Another key assumption is that the fashion business has been … continue reading

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  • Executive Summary
  • Introduction
  • Reflection on Previous Advice and Recommendations
  • Key Assumptions
  • The Fashion Business
  • Strategic Choices for Harwell Group
  • How to Develop Zest
  • Management of Change of New IT System
  • Summary and Conclusion
  • References

Harwell Zest Energy Drink

Harwell Energy Drink Business

Prompt: Harwell ltd. was established in 1974 in Scotland by Lewis and Rebecca Harwell. Their vision is to build a chain of companies within the Harwell group. Currently they have established four different companies which are up and running in various industries, they include: fashion, sports, events and fitness. Their most recent investment was in the IT industry but this eventually became unsuccessful. Lewis and Rebecca are now set to take on a new investment and the group’s net worth has recently been valued at £6.7 million. They plan to venture into the food and drinks industry particularly focusing on the production of canned energy drinks. Although this is a highly competitive sector of the food industry, they have both chosen this because of the increase in demand for energy drinks. Based on your knowledge of strategic position, Lewis and Rebecca have requested you carry out a thorough analysis on their new investment carefully considering the followings:

  1. The external business environment and how this may influence the new investment
  2. Competitive/market forces that would impact this business both positively and negatively
  3. What marketing/penetration strategies do you think can be implemented to boost the market share of this product, hence increasing sales and profit margins
  4. Critically analyse the marketing mix and suggest the most appropriate marketing mix for this product.

Hint: Your advice should be mainly based on key strategic theories and frameworks. You are allowed to make reasonable assumptions stating clear reasons for these if you need to do so –  Harwell energy drink business –Harwell Group Investment in Energy Drink Business (below).  

Harwell Group Investment in Energy Drink Business


Deciding on whether or not to venture into a particular business is an important strategic decision. Careful consideration guided by a thorough analysis of different factors should be done before making such a complex decision. An analysis of the internal (where relevant) and external business environments should be done to help decide whether or not it is worth venturing into the new business. It is a fact that the external business environment greatly affects the chances of a business succeeding in a given industry or market. It is also important the investor evaluates the competitive forces, penetration strategies, and market mix to be applied by their business as these also greatly affect the chances of the business’ success.  Against this background, the Harwell Group which is considering the option of venturing into the energy drinks business in the United Kingdom should analyse the external business environment and competitive forces in relation to the energy drinks market before deciding on whether or not to invest in this business. This paper analyses the external business environment in relation to the energy drinks market in the UK through a pestle analysis. A pestle or pestle analysis basically evaluates the political economic, social, technological, legal and environmental factors that make up the business environment (Kayumi 2014). A pestle analysis is chosen in this case considering its capacity to assess the prevailing business environment and changes that can potentially affect it (Kayumi 2014). In addition, the paper will analyse the competitive environment in relation to the energy drinks market. Based on the results of these analyses, recommendations will be made on whether Harwell Group should go ahead and invest in the energy drinks business, the most appropriate penetration strategy, and the best marketing mix to apply.

External Business Environment (Pestle Analysis)


Given that Harwell Group is based in Scotland, it is subject to the political environment of the United Kingdom as a nation. The UK has enjoyed political stability for a long time and is governed by the rule of law and with respect for democracy. The political environment of the nation is such that  Continue …

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  • Introduction
  • External Business Environment (Pestle Analysis of the energy drinks market/industry)
  • Competitive/ Market Forces
  • Marketing/Penetration Strategies
  • Marketing Mix
  • Conclusion

Keywords: Harwell external business environment, Harwell Competitive forces, Harwell  market forces, Harwell Marketing Strategies, Harwell Penetration Strategies, Harwell Marketing Mix, Harwell Energy Drinks. 

Harwell Energy Drinks Business

Digital Marketing in Retail Industry Example – Zara

Digital Marketing in Retail Industry Example – Zara

Prompt: Choose one company from the retail industry and critically analyse how they use Digital Marketing to engage with their customers. Using appropriate theory recommend how they can improve their online engagement in the future. – Digital marketing in retail industry example – Zara Digital Marketing.

Digital Marketing Zara  Case Study/Report


Zara is an international fashion company that produces and markets different kinds of apparel. The company, whose headquarters is in Arteixo, Spain, was established in 1975. Today, Zara is known to be one of the world’s largest fashion and apparel retailers (Roll, 2019). The company has a presence in close to 96 countries in different parts of the world and owns close to 2,238 stores in these countries (Hanbury (2018). The company retails a wide variety of products including shoes, bags, perfumes, and clothes. Most of these products are made by different suppliers and are then transferred to the headquarters of Zara for branding (Hanbury, 2018). Given that it has customers spread across the globe, the company needs to find ways of interacting with its clients to understand their needs and views regarding its products and services. In this regard, the company exploits digital marketing to communicate with current and potential customers and to maintain a strong brand name. This report discusses how Zara applies digital marketing to engage with its current and potential customers.

Digital marketing in retail industry example






Customer Engagement

In today’s highly competitive business environment, the importance of customer engagement cannot be overstated. Retailers must hence change their approach to marketing from linear (involving one-way communication) to one that involves two-way mutual dialogue and the sharing of benefits between the organisation and the consumer (Fuxman et al., 2014; Karimova 2011). This implies that communication and engagement between the company and the consumer should flow freely and should be more non-linear. Such communication and engagement should be one-on-one, one-to-many, or both depending on the situation. Rihan (2017) notes that in the current world, consumers are more and more getting online to research products, find deals and promotions, and compare prices before making their purchasing decisions. Given this reality, it is only wise for firms to have an online presence and to engage in online marketing which, compared to traditional marketing, is often cheaper … 

Zara engages in several digital marketing activities as part of its market communication endeavours. The company owns several websites, which play an important role in giving it the continuous web presence that it needs while giving customers and consumers the opportunity to browse the products that the company has on offer (Appendix 1). Zara has… facebook pages … Twitter accounts … with each account having a huge following. Read more

Contents for this article:

  • Introduction
  • Customer Engagement
  • Berlo’s Model of Communication
  • Digital Marketing
  • Digital Marketing at Zara
  • Recommendations
  • References
  • Appendices



Companies Aware of the Need for Relation-oriented Skills

Companies Aware of the Need for Relation-oriented SkillsSolved: ‘Companies are becoming increasingly aware of the need for relation-oriented skills in their global endeavours. Female managers working for Western companies, for example, could generally be regarded as potentially effective managers in say, Asia because of their person-oriented leadership skills. The consideration women show others, as well as their ability to empathise, are features that are said to be held in high esteem in that part of the world. Why do you think that some multinationals nevertheless tend not to give serious consideration to female candidates for managerial positions in, for example, the Middle East?’ (Browaeys and Price 2015, p. 233). Critically discuss, referring to relevant research and supporting your answer with examples from international business.  Companies Aware of the Need for Relation-oriented Skills: Cross-cultural management. 

Why Some Multinationals Do Not to Give Serious Consideration to Female Candidates for Managerial Positions


Every business organisation seeks to grow or improve its performance and appreciate that without good leadership, this goal may not be achievable (Law 2015). Owing to this fact, companies are constantly looking out for people who seem to have leadership and management skills and who will hopefully propel the organisation in the right direction. High performing leaders are people who can develop and implement good strategies, ensure tasks are properly performed and done in a timely manner, and can establish and maintain relationships across the organisation. As noted by Law (2015), business leaders or managers can apply relationship-oriented leadership or task-oriented leadership to achieve desired organisational goals. In the contemporary business environment, relationship-oriented leadership is valued given its emphasis on creating relationships that last between the leader and other workers. In this regard, this kind of leadership helps avoid limitations commonly linked with authoritarian leadership such as poor employee motivation (Oni 2017). Relationship-oriented leadership has been closely linked to feminine qualities and as such is commonly preferred in positions in which a lot of cooperation, use of intuition, communication, and flexibility is demanded. There is no doubt that this kind of approach to leadership is practical and vital in business. Even so, some multinational organisations do not give serious consideration for having women, who naturally tend to apply relationship-oriented leadership, to occupy management positions in some countries. In this paper, the possible reasons for this situation is discussed based on Hofstede’s theory and more especially with a focus on the cultural dimensions of power distance, uncertainty avoidance, and masculinity versus femininity. The paper begins by discussing task-oriented and relationship-oriented leadership before discussing the main issue which is the reason for gender segregation in business management. The paper concludes with recommendations for businesses and women. Continue …

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Health Care Systems Comparison – US versus UK

This article presents a health care Systems comparison; a comparative analysis of the U.S. and UK healthcare systems.

Comparison of US and UK Health Care Systems

UK and U.S. health care systems comparison Introduction

Roemer (1991) defines the term “healthcare system” as the combination of resources, organisation, financing and management that results in the delivery of health services to the population. People’s health are impacted by factors outside the healthcare system such as poverty education, infrastructure, the social environment, and the political environment (Annex, 2007). This notwithstanding, a successful healthcare system should provide accessible, quality, responsive, and affordable healthcare services to the population according to the World Health Organisation (WHO, 2015). Countries differ in the way their healthcare systems are organised and how they operate. In this paper, the U.K. and U.S. health care  systems will be analysed and compared. For each of these countries, the country profile will be presented and the organisation and functioning of their healthcare systems discussed. The paper will also discuss health care coverage, healthcare financing and expenditure, and access and quality of healthcare in the two countries. The paper concludes by briefly evaluating the strengths and weaknesses of the healthcare systems of each of the two countries – A Comparison of US and UK healthcare systems.

The UK Healthcare System

The United Kingdom Country Profile

The United Kingdom is made up of four constituent countries; Northern Ireland, Scotland, Wales, and England. The island country has a population of roughly 65,648,000 people with the majority (87.2%) of the population being white. The country’s minority population includes Blacks, Asians, Pakistanis, and other minority groups (CIA 2018). Its population growth rate is estimated at 0.52% while its death rate stands at 9.4 deaths per 1,000 people (CIA 2018). As noted by Parpworth (2016) the country is a constitutional monarchy governed by the rule of law and based on parliamentary democracy. In Europe, the U.K. has the third largest economy after Germany and France. Its GDP was roughly 2.88 trillion U.S. dollars (purchasing power parity) and 2.565 trillion U.S. dollars  going by official exchange rate in 2017 (CIA 2018). Read more

How Jeff Immelt Redirected the Strategy of GE

In what ways has Jeff Immelt redirected the strategy of GE?

1. In what ways has Jeff Immelt redirected the strategy of GE? 
2. To what extent is the strategy aligned with
         a. The requirements of the 21st century business environment?
         b. GE’s resources & capabilities?
3. What organisational changes has the new strategy necessitated? Will GE         be able to successfully execute the new strategy?
4. What alternative strategies should GE consider?

There two sample papers that answer the above questions: Here is the first sample paper: 

The Strategy of General Electric Under the Leadership of Jeff Immelt

IntroductionThe Strategy of GE Under Jeff Immelt

Strategy, according to Chandler (1963), relates to the determination of long term business objectives and goals and the adoption of actions and allocation of resources that are necessary if these objectives and goals have to be achieved. Johnson and Scholes (2011) define the term as the long-term direction taken by an organisation. Strategy has been linked to the pattern of decisions made by an organisation. The strategy that a firm assumes and applies is meant to help it gain competitive advantage in the market in which it operates. This paper focuses on the strategy that Jeff Immelt applied during his time as CEO of General Electric. Among other issues, the paper discusses how Jeff Immelt redirected the strategy of GE.

How Jeff Immelt Redirected the Strategy of GE

Jeff Immelt greatly changed the strategic direction of General Electric during his time at the helm of the company. Soon after assuming the role of CEO of GE, the business environment experienced shocks as a result of major events including a financial crisis, 9/11, and the collapse of energy giant, Enron. Even though the company’s performance under the leadership of Jack Welch was commendable, changes in the business environment necessitated changes in the company’s strategies if its performance as a top performer had to be maintained. In appreciation of this fact, Immelt made a number of strategic changes to the company and how it operated.  

One of the strategic changes that Immelt made to GE related to its shift in focus from the maximisation of shareholder value to growth in long-term earnings. Before Immelt, the company put a lot of focus on short term earnings and in maximising shareholder value such as through ensuring the company had high stock prices. Immelt, however, emphasized that the way to go was to manage the company properly which would ultimately drive the company’s stock prices (Grant 20151).   This move by Immelt was driven by the realisation that traditional sources of value such as the elimination of under-performing assets and cost reduction had been exhausted. Continue reading … 29-45

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Here is the second sample paper:

General Electric Case Study

General Electric Case StudyIntroduction          

The term “strategy” comes from the Greek word “Strategos” which means “generalship” (Nickols 2016). Strategy is a common term or concept in the business field today, having been borrowed from the military. The term has been defined in different ways by scholars and experts. Johnson and Scholes (2011) define the concept as the long-term direction that a firm assumes. On the other hand, Chandler (1963) defines it as the determination of long-term objectives and goals of an organisation and relates it to the actions and allocation of resources needed for the achievement of the organisation’s goals and objectives. On his part, Steiner (2008) associates strategy with the actions that one takes to counter the predicted or actual moves of an opponent. According to Mintzber (1994), strategy is commonly applied in four different ways; as a position, as a pattern, as a plan, and finally as a perspective. Business organisations develop and apply different strategies to achieve their objectives and goals, respond to changes in the business environment, and to counter the moves taken by their competitors. This paper will focus on the strategy of General Electric (GE) under the direction of Jeff Immelt. The paper will begin by providing a background to General electric and its strategy under the leadership of Jeff Immelt before discussing the how the company’s Strategy was aligned with the 21st century business environment. The paper will then discuss GE’s strategy alignment with the company’s resources and capabilities and organisational changes in the company concluding with a brief discussion of alternative strategies that General Electric could have adopted. Continue reading: 30-64.

Alternative link … (code 30-64). 

Social Policies on Housing in France and Germany

This article presents a housing social policies comparison – social policies housing comparison focusing on France and Germany.

Social Policies on Housing in France and Germany: A Comparative Analysis


Housing has been and continues to be vital sector of the economy of developed societies across the world (Sassen 2012). Housing contributes to the economy in three main ways; as part of the construction sector, as part of the real estate market, and through banking in the form of mortgages. Today housing is also an used as an instrument for the innovation of financial instruments and in this regard has raised the distance between itself  and the asset that underlies it to the extent that it is associated with high-risk financial innovation (Sassen, 2012).  Appreciating its importance, different countries have put in place different social policies in a bid to ensure that their nationals are properly housed and that even the poor do not remain homeless. This paper presents a comparative analysis of the housing policies implemented by French and Germany. The paper presents an overview of the housing policy in the two countries, their guiding principles, housing ownership, the cost of housing, security of tenure, housing benefits, and the financing of private and social housing. The paper also discusses issues such as subsidies and housing allowances in France, role of government and NGOs, beneficiaries of social housing, regeneration, and the Anglo Saxon Liberal Welfare Regime in Germany.

French Social Policy on Housing

Overview of Housing Policy in France

As noted by Blanc (2004), France is known to be a centralised nation with officers at the central government making most of the decisions that touch on social policy.  The government of France normal moves with speed in trying to solve problems, a situation that has led civil society in the country to have great mistrust for the government. After the Second World War ended, France realised that she was faced with housing shortage. Consequently, the government emerged as a dominant player in trying to solve the housing problem in the period preceding the 1960s. However, in the 1960s, the government opted to become more indirect while maintaining its economic intervention, a change that was  influenced by the appreciation of the neo-liberal ideology (Blanc, 2004). Read more … 

Social Policies on Housing French and Germany

Housing Social Policies Comparison.

Online Sales Bans By Product Manufacturers on Distributors

If a manufacturer of a product requires that its distributors do not make online sales, then that must harm competition and so such “online sales bans” should be strongly presumed to be anti-competitive. Do you agree? Online Sales Bans By Product Manufacturers on Distributors – online sales bans anticompetitive.

Should Online Sales Bans Imposed By Product Manufacturers On Distributors Be Strongly Presumed to Be Anti-Competitive?


Firms may engage in vertical agreements with other firms or parties as a way of achieving goals they may not otherwise realise acting on their own. When they make such agreements with other companies or parties, firms may impose vertical restrictions. Such restrictions may come in the form of selecting distributors, limiting online sales among other conditions. An Online sales ban come into effect when a company requires its distributors not to make online sales. With anti-competitive practices generally prohibited in the European Union and indeed in many other jurisdictions, the question of the legality of online sales bans is one that lingers in the
minds of many business owners and distributors. If, for example, a manufacturer of a product requires that its distributors do not make online sales, then that must harm competition. Should such “online sales bans” be strongly presumed to be anticompetitive? This paper attempts to answer this question and argues that absolute online sales bans by manufacturing companies are strongly presumed to be anticompetitive.

Anti-competition Laws and Vertical Restraints

Many countries have in place laws aimed at protecting consumers and businesses from unfair practices and practices that inhibit or thwart competition. In the UK in particular, Chapter I of the Competition Act 1998 expressly prohibits any agreement or concerted practice that restricts, prevents, or distorts competition unless such action enjoys exemption from the prohibition. In the same spirit, Article 101 of the Treaty on the Functioning of the European Union (TFEU) forbids concerted practices, agreements and decisions by undertakings or group of undertakings acting together that aim to restrict, prevent, or distort competition within the common market or that may affect trade between European Union (EU) member countries.  Read more … 

Online Sales Bans Imposed by Product Manufacturers on Distributors Anti-competitive