Analysis of Automotive and Canned Soup Distribution Channels

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Distribution Channel Analysis
Introduction
The structure, scope, stakeholder composition and performance of distribution channels vary significantly across industries and can change quickly based on industry pricing and profitability dynamics. For purposes of this analysis automobiles and canned soup, one of the most popular consumer packaged goods (CPG), are analyzed based on their distribution channels. What unifies distribution channels across all industries are the contributions of each channel participant or partner to the value delivered to the customer (Wagner, Lindemann, 2008). Channel integration also varies significantly by industry, as customer requirements often redefine the architecture of channel participants over time to align with unmet needs.
Analysis of Automotive and Canned Soup Distribution Channels
One of the most evident aspects of an industry's profitability and economics is the structure of its distribution channels. For the automotive industry, channel integration ranges from franchises of dealerships to outright ownership of the entire distribution channel (Tung-Zong, Polsa, Su-Jane, 2003). Channel integration in the automotive industry has shifted from being primarily focused on new car sales to creating customer relationships over the lifecycle of a vehicle. This approach to lifecycle-based selling and customer relationships have also been designed to capture greater proportions of services revenue, which are often the most profitable for

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