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  • September 2017 (Revised April 2022)
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Tempur Sealy International (A)

By: Benjamin C. Esty and Lauren G. Pickle
  • Format:Print
  • | Language:English
  • | Pages:25
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Abstract

This case explores the long-term relationship between Tempur Sealy (TPX, a mattress manufacturer) and Mattress Firm (MFRM, a bedding retailer and TPX's largest customer). For almost 20 years, the firms enjoyed a mutually beneficial and commercially prosperous relationship. Yet in August 2016, Steinhoff (a large, South African retailer) made an offer to acquire MFRM. Whether this acquisition will affect the symbiotic relationship that had existed between TPX and MFRM was the subject of intense speculation. While some industry observers believed it would increase MFRM's bargaining power vis-à-vis TPX, others argued it would not alter the balance of power, and that the incentives to collaborate would remain intact.

Keywords

Porter's 5 Forces; Bargaining Power; Buyer Power; Customer Power; Supplier Power; Negotiations; Value Capture; Consumer Durables; Consumer Discretionary; Mattresses; B-2-B; Industry Dynamics; Compensation; Corporate Strategy; Business Strategy; Value Creation; Competition; Cooperation; Private Equity; Distribution; Negotiation; Industry Structures; Customers; Relationships; Leadership; Distribution Industry; Manufacturing Industry; Retail Industry; Consumer Products Industry; United States; South Africa

Citation

Esty, Benjamin C., and Lauren G. Pickle. "Tempur Sealy International (A)." Harvard Business School Case 718-422, September 2017. (Revised April 2022.)
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About The Author

Benjamin C. Esty

Finance
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Related Work

    • September 2017 (Revised April 2022)
    • Faculty Research

    Tempur Sealy International (A)

    By: Benjamin C. Esty
    • September 2017 (Revised June 2021)
    • Faculty Research

    Tempur Sealy International (B)

    By: Benjamin C. Esty and Lauren G. Pickle
    • September 2017 (Revised June 2021)
    • Faculty Research

    Tempur Sealy International (C)

    By: Benjamin C. Esty and Lauren G. Pickle
    • April 2022
    • Faculty Research

    Tempur Sealy International (A, B & C)

    By: Benjamin C. Esty and Daniel Fisher
    • September 2017 (Revised April 2022)
    • Faculty Research

    Tempur Sealy International (A)

    By: Benjamin C. Esty and Lauren G. Pickle
Related Work
  • Tempur Sealy International (A) By: Benjamin C. Esty
  • Tempur Sealy International (B) By: Benjamin C. Esty and Lauren G. Pickle
  • Tempur Sealy International (C) By: Benjamin C. Esty and Lauren G. Pickle
  • Tempur Sealy International (A, B & C) By: Benjamin C. Esty and Daniel Fisher
  • Tempur Sealy International (A) By: Benjamin C. Esty and Lauren G. Pickle
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