ABSTRACT
Strategy is about creating competitive advantage. The following factors are the key issues in the ways that distribution affects strategy:
A good distribution network adds value to the product by increasing utility. The channel is the firm’s major link to its customers. Choice of channel influences the rest of the marketing mix, thus affecting overall strategy. Building appropriate channels takes time and commitment, particularly in a global context, so
distribution decisions are difficult to change. The distribution system determines segmentation and targeting issues in many cases. Conflicts may arise between the firm’s strategic goals and those of the distributors, particularly
in global markets where timescales may be very different. Intermediaries in foreign countries may weaken the control of the supplier over the way the
product is marketed.
