Publications
Publications
- April 2022
- HBS Case Collection
Tempur Sealy International (A, B & C)
By: Benjamin C. Esty and Daniel Fisher
Abstract
Teaching Note for HBS Case Nos. 718-422, 718-423, and 718-424. The cases explore 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; Private Equity; Consumer Durables; Consumer Discretionary; Mattresses; B-2-B; Industry Dynamics; Leadership; Compensation; Corporate Strategy; Business Strategy; Value Creation; Competition; Cooperation; Distribution; Negotiation; Industry Structures; Customers; Relationships; Distribution Industry; Manufacturing Industry; Retail Industry; Consumer Products Industry; United States; South Africa
Citation
Esty, Benjamin C., and Daniel Fisher. "Tempur Sealy International (A, B & C)." Harvard Business School Teaching Note 722-456, April 2022.