Adequate Channel of Distribution
The decision regarding the most adequate channel of distribution is indeed a difficult one to make, and finding a solution has to consider the advantages and limitations of both options. As such, the Chief Operating Officer, who has advanced the idea of indirect distribution, has understood the capabilities of the intermediaries. These already possess developed channels (and formed customers) which can easily be used for a most adequate product distribution. The interest of the intermediaries would be increased to sell
A rather strong argument could however be pointed to the COO, as the indirect distribution implies that the manufacturer will become furthered from the end customer. If on the other hand the company is looking to consolidate its position on the long term, form a loyal customer base and achieve sustainable growth, they should implement the second alternative - this does indeed imply additional costs, but the investments are likely to return multiplied. This aspect is highly important as it will aid the company in further improving and developing the products manufactured as to best satisfy the customers' needs and wants. the items as sales are the sole source of revenue for them. The company will have to allocate a certain number of employees to develop and constantly maintain the website. The ultimate decision depends of the overall corporate goals. Also, sales persons will have to be hired and trained. The main disadvantage if this alternative however resides in that it implies additional costs. The solution promoted by the Chief Financial Officer on the other hand does not imply the involvement of any tertiary parties and therefore communications with the customers will be easier to maintain. In this order of ideas, communications with the actual customer base will be rather difficult and will depend mostly on the intermediaries. If the organization desires quick profits, they should implement the solution proposed by the COO as this is more likely to generate rapid incomes. Finally, a third argument in favor of using distributors is that the direct involvement of the manufacturers is limited - this involvement includes energy and time as well as money.
Common topics in this essay:
Financial Officer,
Operating Officer,
,
additional costs,
indirect distribution,
customer base,
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Acceptance Essays
