First, vertical cooperation has created a sustainable competitive advantage for Nestlé to improve access to valuable resources over partners, including retail and people. Pritchard and Britcard (2000) pointed out that Nestlé works closely with local farmers, manufacturers and a distribution channel and that its research and development sector caters to regional needs to develop products to expand the global customer base. Furthermore, Nestlé began to establish eight subsidiaries in Thailand, which consisted of seven manufacturing plants acquired in contract manufacturing to supply raw materials, including milk powder and much more (Pritchard & Britcard, 2000). Furthermore, 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 the new market better than laggards, and thus maintain market share.