1. In mini-case #1, the firm decided to reverse back to their previous channel mix because of the lack of change in overall profitability when expanding their distribution mix and the perceived decline in brand integrity. The firm originally decided to expand its distribution mix to generate additional sales. The firm was able to successfully generate more sales, but because they expanded into discount stores; this decision did not produce greater profitability. 
2. Yes, I agree with the firm. Though the firm did reap any losses based on this new strategy, the firm was not able to gain any additional revenue from this strategy. In general, I believe it is very risky for well-known brands to expand into the discount store market, as it will have a declining impact on brand integrity. Thus, because this channel mix did not increase profitability, the firm made the right decision. 
3. Yes, I would agree with the Swiss watch manufacturers’ decision to produce a new range of cheap, digital watches under a new name. With this choice of channel, they are able to participate in a growing market while still protecting their brand integrity. Also, by placing them in their traditional distribution channels, the manufacturers are able to undercut other watch brands within jewelry stores. 
4. No, because the jewelry stores will want to protect their brand integrity. I believe it will depend mostly on the types of customers these jewelry stores attract and, more importantly, the physical location of these jewelry stores. 
5. The watch manufacturers should also consider selling to discount stores, e-commerce platforms, and local boutiques. With these channels, they can reach a greater audience that can expand profitability.