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Substantial Changes in Channel of Distribution
Rao (1999) states that distributors and channels of distribution has existed for a long period of time as these channels are used to get products to customers in convenient, faster, cheaper, and more effective manner. Given the significance of distribution in getting products to customers, businesses or companies in every industry are increasingly looking for suitable channels of distribution. Effective, cheaper, and faster distribution of products to customers is considered critical toward the successful and profitable operations of any business/company. Consequently, different industries continue to experience changes in their channels of distribution as means for enhancing efficiency and profitability. These substantial changes are influenced by various factors, but focus on enhancing efficiency and profitability.
The retail industry is one of the industries that has experienced substantial changes in the channels of distribution. These substantial changes in the channels of distribution in the retail industry are evident in the emergence of electronic retailing (Krafft & Mantrala, 2011). Electronic retailing dominates the retail industry in the new millennium and has acted as a significant change in the distribution channels in this industry. Traditionally, retailers would distribute their products through specific distributors and locations and customers would need to visit these...
However, the rapid technological advancements have changed how businesses in the retail industry get their products to customers. Some of the fundamental reasons for the substantial changes in channels of distribution in the retail industry include…
Technology
Technological advancements have resulted in the emergence of the concept of online retailing that has changed approaches to distribution processes. The advancements have enabled retailers to easily gather, group or classify, and retrieve large volumes of information in a short period of time (Rao, 1999). Online retailing makes it easy for customers to select a product and purchase it electronically and await its delivery at their doorstep.
Consumer Behavior
Consumer behavior has influenced substantial changes in the channels of distribution in the retail industry through increased interest in the shopping experience (Krafft & Mantrala, 2011). In today’s information era, customers have become more knowledgeable about products and services and are increasingly looking for enhanced shopping experience. As a result, businesses in the retail industry have changed their approach to distribution in attempts to provide customers better shopping experience.
Competition
The retail industry is characterized by improvements in retail sales and increased…
The main focus of the 1980s regarding brands focused on a trend in takeovers, enabling successful brands to become extremely valuable on the open market. Even very early on, a value associated with a brand large was viewed in part as more important than the product itself. Early research indicates that many thought the only way to have a successful brand was to buy one. Many felt that the
Distribution Channels Assessing Dell's Distribution Channels Dell Corporation (NYSE:DELL) is a global provider of personal computers, laptops, enterprise servers and storage networks, generating $61B in revenues during its latest fiscal period. All products are sold through a multichannel marketing and distribution strategy, with the server systems being sold through a network of distributors, dealers, resellers and service providers. The Dell servers are heavily customized to the specific needs of a given business,
Supply Chain Characteristics There are five critical characteristics of supply chain in relation to the personal computer analysis. One of the essential characteristics of supply chain is the view of the process as an important asset. This makes it important for the organization to incorporate supply chain within the products and marketing strategies. Another critical characteristic is integration of new technologies with the aim of minimizing the cost of provision of
Distribution Channels Marketing Distribution Channels The retail behemoth Wal-Mart has been called the template for 21st century capitalism. In an article entitled, "Wal-Mart: Template for 21st Century Capitalism," author Corwin Pavilion notes "Wal-Mart is noted for its low-price, low-wage, globally-sourced business model, a strategy that has achieved precision control of manufacturing, inventory, and distribution by taking full advantage of the world's new telecommunications infrastructure." Traditionally, distribution issues come into play heavily in
Distribution Levels Rolex watches: Rolex deploys an exclusive distribution strategy. Its high pricing is part of its appeal, given that wearing a Rolex signifies one's economic status. Rolexes can be bought at high-end jewelers, department stores, and select shopping areas which high-income consumers are likely to patronize. Coach purses: Coach similarly has an exclusive distribution strategy. They are expensive items of clothing, usually sold at select Coach retailers. These stores are often
Channel Management B2B Marketing The report analyzes the case studies of Lotus Development Corporation, Aqualisa Quartz Shower and Atlantic Computer. The report defines the problem statements and identifies the alternatives in the case, and the report provides recommendations to assist the companies to make effective decisions. The Lotus was facing challenges whether to discontinue with its distributor and dealers and use its saleforce to deal directly with its corporate users. The