In: Operations Management
The issue of slotting fees charged by the various sellers are non uniform in nature. The charging of slotting fees refers to to the amount charged for the space and slots.It leads to monopolistic tendencies and not allow the others specially small retailer to enter the market. On the one hand it is increasing profits of the firms .
Debates about slotting fees and related ethical and policy issues remain unresolved despite continued scrutiny. One of the key issues is whether large manufacturers use their market power to suppress competition.
At the same time it is completely unethical . It creates barrier between the big and small manufacturers.They increases the cost of the product but at the same time it is considered as the necessity in the modern word of supermarkets which involves huge investment for shelf spaces.The debate of high profit and the ethical element associated with it continues . The charging of slotting fees is unethical in long run.