THE PRODUCTION OF MICROSCOPES COMPLETELY IF THE AGREEMENT WITH VICKERS HAD NOT BEEN SET UP . THE REASON FOR THIS WAS THAT SOPELEM FOUND ITS RESEARCH AND DEVELOPMENT COSTS TOO HIGH FOR THIS MINOR PART OF ITS PRODUCTION TO BE REASONABLY PROFITABLE . THE AGREEMENT HAS , THEREFORE , CONTRIBUTED TO MAINTAINING A COMPETITOR ON THE MARKET FOR MICROSCOPES , AND MAKES IT LIKELY THAT SOPELEM WILL HAVE A STRONGER POSITION IN THE FUTURE AS AN INDEPENDENT MANUFACTURER . BY VIRTUE OF OFFERING THE POSSIBILITY OF AN EXTENDED AND MORE COMPREHENSIVE RANGE OF MICROSCOPES AS WELL AS BY THE SPECIALIZATION , THE AGREEMENT FURTHERMORE OFFERS EACH OF THE PARTIES TO IT THE POSSIBILITY TO IMPROVE HIS TECHNICAL COMPETENCE AND THEREFORE IMPROVES THEIR INDIVIDUAL COMPETITIVE SITUATION AFTER A TERMINATION OF THE AGREEMENT . THUS THE AGREEMENT HELPS TO IMPROVE PRODUCTION AND ALSO TO PROMOTE TECHNICAL PROGRESS .
2 . THE DISTRIBUTION SYSTEM ENVISAGED BY THE AGREEMENT IS LIKELY TO ENABLE SOPELEM , NACHET AND VICKERS TO INCREASE THEIR SALES IN THE OTHER'S TERRITORY BECAUSE OF THE ACCESS TO THE OTHER'S SALES AND DISTRIBUTION NETWORK WHICH WILL BE MORE EFFICIENT AND BETTER GEARED TO THAT PARTICULAR MARKET .
IN VIEW OF THE VERY SMALL MARKET SHARES WHICH THE PARTIES HAVE ACHIEVED OUTSIDE THEIR HOME MARKETS THE COSTS OF MAINTAINING EFFICIENT AND SATISFACTORY INDEPENDENT DISTRIBUTION SYSTEMS IN THE VARIOUS MEMBER STATES WERE DISPROPORTIONATELY HIGH .
THE COMMON DISTRIBUTION SYSTEM SET UP UNDER THE AGREEMENT REDUCES THESE HIGH COSTS BECAUSE THE PARTIES AVOID SETTING UP OR MAINTAINING CONCURRENT INDIVIDUAL DISTRIBUTION NETWORKS IN THE SAME COUNTRY .
THE EFFICIENCY OF THE DISTRIBUTION SYSTEM WILL BE INCREASED BECAUSE THE DISTRIBUTOR APPOINTED FOR THE VARIOUS COUNTRIES WILL BE THE ONE WHO PREVIOUSLY HAD THE BETTER SALES NETWORK AND THE MOST WELL ESTABLISHED BUSINESS RELATIONS IN THOSE PARTICULAR COUNTRIES .
FURTHERMORE , THE AFTER-SALES SERVICE , WHICH ACCORDING TO THE AGREEMENT IS CARRIED OUT BY THE DISTRIBUTOR , WILL BE MORE RATIONAL BECAUSE THE PARTIES AVOID EXPENSIVE CONCURRENT SERVICE ORGANIZATIONS IN THE SAME COUNTRIES .
THE AGREEMENT ENSURES THAT BOTH PARTIES' INSTRUMENTS WILL BE PRESENT AT THE SAME TIME ON MARKETS OTHER THAN THE PARTIES' TRADITIONAL ONES , WHICH WILL ENABLE CUSTOMERS TO SEE THEM TOGETHER . PRIOR TO THE AGREEMENT THIS WAS NOT THE CASE .
THE AGREEMENT , THEREFORE , CONTRIBUTES TO IMPROVING THE DISTRIBUTION IN THE COMMON MARKET OF THE MICROSCOPES FALLING UNDER THE AGREEMENT .
3 . THE TECHNICAL COOPERATION WILL ENABLE BOTH SOPELEM AND VICKERS TO OFFER A MORE SATISFACTORY RANGE OF MICROSCOPES AND SERVICES WHICH IS IMPORTANT FOR PRECISION INSTRUMENTS . THE REDUCTION OF COSTS ARISING FROM THE UNITING OF THEIR DISTRIBUTION NETWORK AS WELL AS FROM THE SPECIALIZATION AND CONCENTRATION IN THEIR RESEARCH AND DEVELOPMENT WORK WILL FURTHERMORE ENABLE BOTH TO SUPPLY SUCH INSTRUMENTS AND AFTER-SALES SERVICE AT LOWER COSTS THAN BEFORE THE AGREEMENT WAS MADE . THE EXISTENCE IN THE COMMON MARKET OF SEVERAL TECHNICALLY ADVANCED , LARGER AND ECONOMICALLY STRONGER COMPETITORS WILL ENSURE THAT THE CONSUMERS WILL HAVE AT