Gérard Cachon - Faculty Research in Knowledge@Wharton

Biggest by Default: Toyota May Be Number One, But It Still Faces Challenges

Wed, 04 Feb 2009 17:07:39 EST

Toyota officially eclipsed General Motors as the world's largest automaker by sales last year, but its strength is only relative: The Japanese automaker, like its competitors, is struggling against a sharp drop-off in sales and global overcapacity. According to Wharton faculty, after years of conservative growth, Toyota accelerated its expansion in the past decade, making it harder to apply the brakes in the current downturn. The new market dynamics, which coincide with a changeover in company leadership, mean the road ahead may be especially difficult to navigate, they say.

A Precarious Road: How Retailers Can Navigate Inflation's Hazards

Wed, 06 Aug 2008 17:31:38 EST

Retailers are in a tough situation, locked between rising product costs and a limited ability to raise their prices. Even cost-savvy market leaders such as Costco are having a difficult time. But Wharton faculty say that handled carefully, the current inflationary period may actually be a business opportunity for some companies. The key: Forgetting some of the old rules of retailing.

Retail Price Maintenance Policies: A Bane for Retailers, but a Boon for Consumers?

Wed, 08 Aug 2007 15:43:21 EST

In June, a high-profile Supreme Court case held the attention of retailers and manufacturers alike. In a five-to-four ruling, the high court overturned a lower-court decision to award $1.2 million to a Dallas-area clothing store that was cut off by a supplier, Leegin Creative Leather Products, because the retailer refused to abide by the manufacturer's retail price maintenance (RPM), or no-discount policy. The decision means that manufacturers no longer face a blanket prohibition against implementing an RPM policy. The case has spurred concern among consumer groups, who claim it overturns a century of precedent and will lead to price fixing and unjustifiably higher prices. But Wharton faculty suggest that any changes will be gradual, and may ultimately benefit consumers.

Here Today, Discounted Tomorrow: Strategic Shoppers Know When to Buy, and at What Price

Wed, 30 May 2007 15:38:15 EST

Some shoppers just can't help themselves and buy mostly on impulse without regard to price. Others are die-hard bargain hunters, who only open their wallets for a discount. Then there are the strategic consumers, who are willing to buy full-price sometimes, but at other times they will wait for a bargain. According to new research by Gérard P. Cachon, professor of operations and information management at Wharton, and doctoral student Robert Swinney, it's these customers that retailers need to focus on in order to reap the full benefits of lean retail inventory management and variable pricing.

Can't Find That Dress on the Rack? Retailers Are Pushing More Shoppers to the Web

Wed, 01 Nov 2006 15:04:42 EST

Shoppers with tastes, or sizes, that fall outside the mainstream may have more trouble finding what they want in stores as retailers attempt to shift low-volume items to Internet sales. According to Wharton faculty and industry analysts, retailers are paring back in-store selections in order to save inventory handling costs as well as precious floor space. The strategy, however, has its drawbacks.

Now Showing at Blockbuster: How Revenue-sharing Contracts Improve Supply Chain Performance

Mon, 16 Oct 2000 07:58:04 EST

Those of us who have been thwarted in our efforts to find a copy of a just-released video at our local video store will be interested in research conducted by Wharton professor Gerard Cachon and Martin A. Lariviere from the Kellogg Graduate School of Management. Their studies suggest that using a revenue-sharing model can be a smarter way to do business � and provide enough copies of new releases to meet demand - than relying on the traditional wholesale price-only contracts. While Cachon and Lariviere use the video cassette rental industry to make their case, their research shows that the performance of any supply chain can improve under this type of contract.