Statement of the Problem
1. Mueller-Lehmkuhl GmbH (MLG) is a major producer of apparel fasteners. It has corned the European market with its 17% average market share and is operating in nine European countries among others. It also has stretched its markets as far as Africa, as a result of joint-venturing with the German subsidiary of a large American company called Atlas.
2. The European market for apparel fasteners is sizeable. In 1986, the estimated sales value of the apparel fastener industry exceeds half a billion US$. Given that the market operates in a seemingly oligopolistic manner, with non-financial barriers to entry, and a growth rate of only ...