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Essay / Research Paper Abstract
This 10 page paper looks at why the distribution channels ands systems are so important in this industry and outlines how they have been used to create competitive advantages. Companies such as Dell, Compaq and Hewlett Packard are considered, with a brief look at Microsoft. The bibliography cites 15 sources.
Page Count:
10 pages (~225 words per page)
File: TS14_TEdistrb.rtf
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Unformatted sample text from the term paper:
marketing to be able to realise its potential there needs to be an effective distribution channel in operation for the company to be able to sell the products. If we
look at the computer industry we have prime example of the way in which the distribution can be seen as key to success. In any industry there are different
factors which will have a bearing in the structure and way companies compete. In the computer industry there are several factor that need to be considered, the first is that
the majority of computers are bought through resellers, and as such there need to be a good retail distribution channel. In may cases there will be nuances such as brand
name, however, where there is similar functionality, if a machine is not available due to lack of stock, or if it is not stoked, then it is likely the store
will sell a different computer, substitution ability of competing products in this market is high. There is also a barrier to entry in this market for any potential new entrant
as to gain access to the mainstream retailers is also a challenge, they already have established contracts and brands they sell, this is a difficult market to gain entry to
in order to access the retail distribution channels (Thompson, 1998). The products are differentiate, but the basic functionality has been becoming more heterogeneous as technology has developed, this has
resulted in a position where "We are entering a phase where what goes in the box is less important than how it gets delivered" (Wolfe, 1998; 41). It is for
this reason when we look at the distribution, in this market it is also a strategic and competitive matter as well as a market access matter (Pendery et al, 1998).
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