ce (not necessarily Konark's price).
The relationship between Konark and the dealers must also be examined if the company is to enjoy the dominance of the market that it currently has. At this point, for example, Konark forbids its dealers from carrying competing brands, forcing dealers to offer only Konark products and making consumers interested in comparison shopping travel from one store to another before making a decision. Since Konark televisions are technically superior to the competition in many cases, yet the prices are favorable, a side-by-side comparison situation is not likely to hurt Konark and may well lead to additional sales. By freeing dealers to carry the competition, Konark would also be viewed as more dealer-friendly, which help increase dealer loyalty and lead to more favorable product positioning within the dealer locations.
Of course, this approach does have disadvantages, including the margins on competing brands. If dealers are able to sell competing brands, they are likely to encourage customers to purchase those brands which offer the greatest profit margin to the dealer. However, if Konark is successful at reducing costs by closing its showrooms, it may be able to increase the margins that dealers can receive; this will help the company gain market share and curry favor with its distribution channel. In addition, money saved from closing the showrooms can also be used to create dealer incentives which would provide rebates when a certain sales volume is reached. This may be particularly important as the company battles increases in taxes
...