This research is motivated by my industry experience of working with small manufacturers in the high technology industry market space and ... Show moreThis research is motivated by my industry experience of working with small manufacturers in the high technology industry market space and large manufacturers in the telecom and healthcare industry market spaces. In these industries, small manufacturers thrive on specialization and focus on breakthrough innovation to maintain product differentiation and premium positioning and to sustain competition. In contrast, large manufacturers enjoy the benefits of economies of scale that provide cost efficiencies and use price as major differentiating factor. This research work endeavors to model asymmetric competition that emerges endogenously in industries where scale and scope economies interact to force firms to adopt specialized strategies and address the below research questions:1. How does the cost structure shaped by scope and scale economies in engineering, sales and service drive asymmetric product line choices?2. What channel coordination problems arise in this context?3. How can manufacturers redesign their operating mechanism and sales force to optimize the channel? Show less