First, vertical cooperation has created a sustainable competitive advantage for Nestlé by improving access to valuable resources for partners, including retail and people. Pritchard and Britcard (2000) pointed out that Nestlé works closely with local farmers, producers and a distribution channel and that its research and development sector responds to regional needs to develop products to expand its global customer base. Additionally, Nestlé began establishing eight subsidiaries in Thailand, consisting of seven manufacturing facilities acquired under contract manufacturing for commodity products including milk powder and much more (Pritchard and Britcard, 2000) . Additionally, Nestlé (Thai) Ltd. purchases products from its factories and then distributes Nestlé products throughout the country and to third parties internationally (Pritchard & Britcard, 2000). Second, Nestlé's first mover advantage has had a significant impact on Fonterra because it can control certain resources, discern new markets better than latecomers and thus maintain its market share.