For many companies, the lure of partnering with a mega-retailer is irresistible: The Wall Street Journal writes that giants like Wal-Mart Stores Inc. and Home Depot Inc. can put products in front of hundreds of millions of customers -- and potentially bring in huge gains in sales and market share.
But behind those high hopes may be a faulty premise -- one that can lead to disaster for many companies. Whether out of naiveté, arrogance or greed, manufacturers expect that the big retailers will care about the success of their products as much as they do.
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The Distribution Trap
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