If there is one distribution channel that Wonderful Widgets’ competitors have overlooked, then it will essential for the company to take advantage of that strategy.Examination of the benefits and costs-although this process may be time consuming, the time is well spent considering the benefits the company will gain. Selecting the distribution channel to use, implementing all necessary and supporting systems, and diverting the entire company in the chosen direction, it will not be easy to reverse such decision (Weitz & Jap, 2005). Therefore, it is always recommendable to weigh carefully the benefits and costs associated with every type of distribution channel before committing the company to a certain distribution channel.Ranking the options-after examination of different distribution channels, it is vital to rank them according to the order of preference. It will be advantageous to prefer the distribution channel that does not need the company to add another channel thus incurring extra capital. Some distribution channels are complementary, thus allowing the company to benefit from the synergy between the two channels (Frazier, 2009).The major idea here is to carefully choose the best option instead of simply implementing a distribution strategy for granted. This is whether the strategy is the standard of the industry or is the most convenient for Wonderful Widgets. It is also essential to understand the reason behind approving or rejecting a certain strategy in order to determine whether a unique advantage of cost is overlooked (Fröderberg, 2006). The more the time spent in selecting the distribution strategy, the less the costs the company will incur after implementing the strategy.After evaluation of the above aspects, the best option for Wonderful Widgets is central management strategy. Centralized distribution strategy refers to a way of organizing the product’s recipient from the suppliers of the company and the onward delivery of the products to individual branches since the company has multiple retailing operations (Frazier, 2009). After implementation of the centralized management strategy, the deliveries from the company are delivered to a central place, in huge amount, instead of delivering to a specific branch. Loads are then transported to all branches, retailers, or customers.One of the
Frazier, G. L. (2009). Organizing and managing channels of distribution.Journal of the Academy of Marketing Science, 27 (2), 226-240.
Fröderberg, A. (2006). Cutting logistics costs with a centralized distribution model for ABB’s distribution of LV products in Asia Pacific.
Weitz, B. A., & Jap, S. D. (2005).Relationship marketing and distribution channels.Journal of the Academy of Marketing Science, 23(4), 305-320.
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