Combating Different Risks with an Effective ERM Solution Part IIIn the first part of this article we looked at two of the ...
likelihood of expansion of the product lines. Trademark is any company’s most precious asset andany infringement on it can...
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Combating Different Risks with an Effective ERM Solution Part II

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In the first part of this article we looked at two of the most important risks faced by enterprises worldwide namely product counterfeiting and gray market sales.

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Combating Different Risks with an Effective ERM Solution Part II

  1. 1. Combating Different Risks with an Effective ERM Solution Part IIIn the first part of this article we looked at two of the most important risks faced by enterprisesworldwide namely product counterfeiting and gray market sales. In the concluding part of this article,we would look at some other enterprise risks and how to combat these risks with an effectiveEnterprise Risk Management (ERM) solution.Minimum Advertised Price (MAP)MAP refers to the minimum price at which the retailer can sell products. It can go above the specifiedprice but not below it. MAP is an arrangement wherein suppliers can set a lower limit on the pricesthat its resellers may advertise for the suppliers products. The MAP policy programs can either be aunilateral policy imposed by the manufacturer/supplier or an agreement between themanufacturer/supplier and its resellers. The purpose of MAP programs is to ensure consistent pricingfor consumers and profit for sellers. However, certain resellers violate the MAP policy programs tomake quick money. They sell the products on the Internet at a rate lower than the MAP fixed by themanufacturer / supplier. Such a move on the part of the reseller damages distributor loyalty, marginsand most importantly the brand.Trademark InfringementWikipedia defines Trademark infringement as “a violation of the exclusive rights attaching to atrademark without the authorization of the trademark owner or any licensees (provided that suchauthorization was within the scope of the license).” The Court has put down eight specific elementsto measure likelihood of confusion and this includes strength of the mark, proximity of the goods,similarity of the marks, evidence of actual confusion, marketing channels used, type of goods and thedegree of care likely to be exercised by the purchaser, defendants intent in selecting the mark and
  2. 2. likelihood of expansion of the product lines. Trademark is any company’s most precious asset andany infringement on it can directly affect its reputation, customer trust and revenue.In such a scenario, there is a need for an effective Enterprise Risk Management (ERM) solution thatcan bridge the gap between supply chain planning solutions and product Lifecycle managementsoftware. Such solutions help manufacturers in the high tech, pharmaceutical and retail luxury goodsindustries mitigate these risks. It provides 24/7 real-time monitoring of sources that is not possiblewhen using traditional methods/solutions. Since counterfeit and channel violation listings often goon and off the Web within 48 hours, only real-time solutions can find all the violators. Thus with abest of breed ERM solution that comes armed with an advanced web mining and reportingtechnology, companies gain visibility beyond their enterprise and beyond their supply chain in theglobal, open market.Read More About: brand management, brand reputation, Anti-Counterfeiting

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