Publications
Publications
- April 1998 (Revised January 2007)
- HBS Case Collection
Arrow Electronics, Inc.
By: Das Narayandas
Abstract
Deals with the issue of cross-selling and managing a portfolio of products and services in business markets. Arrow/Schweber (A/S), a subsidiary of electronic parts distributor Arrow Electronics, has a portfolio of products that differ in the amount of value added by A/S. A/S uses value-added items such as programmable logic chips as "loss leaders" in order to acquire and retain a customer. It makes money when it sells the so-called "commodity" or low value-added products to the same customer. An Internet-based distributor is now offering Arrow a chance to sell commodity products through its e-commerce site. This new channel can threaten Arrow's overall business model if a large portion of its existing customers switch their purchases of the commodity products to this new distribution channel. Arrow needs to decide how it should respond to this challenge.
Keywords
Distribution Channels; Internet and the Web; Problems and Challenges; Change Management; Electronics Industry
Citation
Narayandas, Das. "Arrow Electronics, Inc." Harvard Business School Case 598-022, April 1998. (Revised January 2007.)