Exclusive Agreements
Exclusive agreements are deals set between two companies or individuals where one party has to fulfil a certain criteria specifically just for that company and no one else. This effectively only provides the company with a specific service from the one to the other. This keeps a form of "business" and can help boost both companies profit. This can be a mutual agreement between the two companies/individuals. By being in a Exclusive agreement you can only receive or give good specifically to that one soul partner, it is unlikely that there could be a break in agreement as both companies benefit highly from this.
The benefits this can have on a certain company would be that they can keep a healthy relationship with maybe a competitor and work together to boost profits. Or two companies could work together to increase their publicity which in effect gains them both some profitable income. This will bring more customers as it brings a form of "more variety" into context in terms of sales. By bringing two companies together it can also bring two sets of customers who can learn more about the other. This type of agreement can sometimes benefit the primary company more as they are the one that is most likely to be asked to join this form of agreement. By bringing both sets of customers together it will always have a positive effect in terms of numbers. Economically speaking in terms of price elasticity and demand it depends on the customers elasticity which means how much they are willing to spend. If a company increases the price of something extremely then they are more likely to lose a higher number of customers. If the price increases slightly then fewer customers would be lost, by introducing another company within another and increasing the price, the company will always gain from this.
An example of this can be seen in Sky Sports and their Exclusive Agreement with UEFA Nations League to show any English games including the National team in the Euros.
The benefits this can have on a certain company would be that they can keep a healthy relationship with maybe a competitor and work together to boost profits. Or two companies could work together to increase their publicity which in effect gains them both some profitable income. This will bring more customers as it brings a form of "more variety" into context in terms of sales. By bringing two companies together it can also bring two sets of customers who can learn more about the other. This type of agreement can sometimes benefit the primary company more as they are the one that is most likely to be asked to join this form of agreement. By bringing both sets of customers together it will always have a positive effect in terms of numbers. Economically speaking in terms of price elasticity and demand it depends on the customers elasticity which means how much they are willing to spend. If a company increases the price of something extremely then they are more likely to lose a higher number of customers. If the price increases slightly then fewer customers would be lost, by introducing another company within another and increasing the price, the company will always gain from this.
An example of this can be seen in Sky Sports and their Exclusive Agreement with UEFA Nations League to show any English games including the National team in the Euros.
Another example can be seen with Apple and Amazon when they made an exclusive agreement with Audiobook. However this had recently ended.
Confidentiality agreements are agreements that are kept between two parties or companies that is legally protected. The deal will have confidential information that is disclosed and only available to the two parties. this keeps a calm relationship between the two parties without any other third party knowing. Confidential agreements can be a sign of "mutual" benefit as both parties would be restricted to the use of their own produce.
This type of agreement is similar to Exclusive agreements as it is mainly only between two companies. The rules of a exclusive agreement is that one company fulfils the product with only one other company and it is strictly between those two and no one else, which is kind of like confidential agreements as both parties are the only ones with access to the product and they work together to boost each others profits.
BIBLIOGRAPHY
http://www.telegiz.com/articles/13830/20170122/regulatory-pressure-amazon-apple-exclusive-audio-book-deal.htm
http://www.skysports.com/football/news/11095/10742583/competitive-england-games-live-on-sky-sports-for-uefa-nations-league
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