Abstract
Matt Frisch, VP of Corporate Development for Canadian pharmaceutical wholesaler Kohl & Frisch, had successfully led the charge to buy out US-based rival AmerisourceBergen Canada (ABC). ABC's aggressive price cuts had disrupted the industry -- before squeezing its own revenues to the point where leaders at its Pennsylvania headquarters decided to divest the Canadian unit rather than subsidize an unprofitable operation. This case explores Frisch's strategic alternatives given the firm's opportunity to now change the competitive dynamics of the industry: whether to pressure manufacturers for more favorable terms or to pursue vertical integration. Students reading this case are asked to consider how Kohl & Frisch can most effectively deploy its new market clout to obtain a significant and sustainable competitive advantage.