Sample Business Studies Paper on Distribution strategies

Distribution is the process of getting the product from the producer to the consumer. Choosing the best type of distribution strategy for getting a product from the producer to the consumer depends on the product being sold and the financial impact of the plan to the company (Buurman, 2002). The product being sold determines the distribution strategy in terms of the product’s life cycle and packaging. The financial impact comes in the costs incurred by the company to get its products to the market in terms of the resources used to set up stores and rates paid to the distributors or other intermediaries in the process before the product reaches the targeted consumer. Also, globalization is becoming a significant player in determining distribution strategies as most businesses continue to globalize (Cooper, 1993). There are various distribution strategies including direct strategy, indirect strategy, intensive strategy, selective strategy and extensive strategy. The direct strategy is whereby the company distributes its products directly to their consumers either by e-commerce shops or the company-owned shops. The indirect strategy is where the company entrust intermediaries to deliver products to the consumer. In the intensive strategy, the company sets up as many outlets as possible to popularize the product. The selective strategy is done by the company setting up outlets in specific locations. The exclusive strategy involves setting up limited outlets. Taking into consideration these various distribution strategies, I would recommend the company should adopt an indirect distribution strategy. The indirect strategy is the best to enable it cut its costs incurred on transportation and setting up of stores in globally instead the middlemen are the ones who will incur this costs (Lambert & Stock, 1993). Also, an extensive network of intermediaries will help significantly in reducing the variability and improving the customer satisfaction. Also, by adopting the indirect strategy, the company will be able to avoid the complexity of managing distribution logistics.

Implementation

Adopting the recommended guidelines would have a significant impact on the growth of the company, but shaping the company to meet these guidelines would not be an easy job. The first step the company needs to take is stock up the already existing warehouses around the United States. These warehouses will serve as essential distribution centers to all the other parts of the world. Each warehouse can be assigned a region of the world to deliver the products from where the middlemen can distribute the product locally within each area. This makes it easier to manage how various regions react to the product from the specific warehouses; this will, in turn, help in smooth management of the company. Also, it should look into investing in increasing its network by bringing in intermediaries from all around the world. By investing in enlarging the number of its middlemen, it will smooth-en its distribution of the product from the time the product is shipped to these various regions of the world (Christopher & Peck, 2012). Also, the company needs to discuss with the distribution agents on how to share the profits. The company also needs to focus more resources on production as this will make sure that there more products by the distribution agents situated all around the world. Also, the company needs to change its management from centralized management to decentralized management; by doing this, the company will create independent managers for each warehouse that will manage their various regions.

Questions

The scenario was a bit challenging on various levels. These challenges included unclear additional information, loosely arranged information network layout, unclear details about the product rendering of unwanted information. One of the most significant challenge while completing the scenario was determining which type of product was the company dealing in. “Widget” is a placeholder for an unspecified product. By having an unnamed product made it challenging because product characteristics are crucial to choosing an effective distribution strategy. The information provided on the scenario is unclear in that it does not make a significant piece of information. One get lost reading the scenario, and one has to read through a couple of times to comprehend the meaning of the scenario. The information about the warehouses is not clear about which states the warehouses are located and how many houses they are in total. The scenario has a poorly arranged information network in that the information provided in the scenario does not add up to one great informative layout. The information about how one meets the outgoing manager and tells him/her about the management system of the company does not contribute to the understanding of the scenario. Also the name Mr. Smith is a character that comes up at the end of the scenario, and it is unclear about his position in the company.

The additional information provided in the scenario is not very useful in facilitating the selection of the effective distribution strategy. However, some additional information that the company owns various warehouses across the United States adds to one recommending a specific distribution strategy. All the other additional information about meeting the outgoing manager after the meeting with Mr. Smith is not adding any value on how to select the effective distribution strategy. The additional information should be changed to provide more information about the product the company produces.

References

Buurman, J. (2002). Supply chain logistics management. McGraw-Hill.

Christopher, M., & Peck, H. (2012). Marketing logistics. Routledge.

Cooper, J. C. (1993). Logistics strategies for global businesses. International journal of physical distribution & logistics management.

Lambert, D. M., & Stock, J. R. (1993). Strategic logistics management (Vol. 3, pp. 306-318). Homewood, IL: Irwin.