Monday, August 20, 2012

The Business of Relationships

In the world of business, opportunities for achieving success are everywhere. Many times, that success can depend on one company developing relationships with other businesses. The combined bond that they form can be mutually beneficial, yielding enhanced cost savings and greater profit.

That’s the story with, an Internet retailer based in Australia. The company recently announced that it has formed a partnership with Australia Post, choosing it as the exclusive shipper of its products. The new partnership is likely to yield significant cost savings to Tarazz while creating additional revenue for Australia Post.

Not everyone is pleased with the deal, however, as local Australian businesses are already having a hard time competing against Internet based companies offering cheaper prices. Reducing the costs of shipping products to customers could have the effect of encouraging more online purchases over conventional brick and mortar stores.

Do you think businesses should be able to form exclusive relationships with each other?

No comments: