The Different Distribution Options for Global Gadgets and Its New Housewares Line

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Placement There are a number of different distribution options for Global Gadgets and its new housewares line. The first of these is the company's existing distribution channel. The main advantage of this is obvious it already exists. If the current distribution channel is even remotely scalable, it will be an inexpensive option that will bring the housewares line to multiple states through the 11 stores. The company's website is also online already, again leading to a reduction in the costs associated with setting up an entirely new distribution channel. The existing retail channel has limitations, however. The most obvious one is that there are only 11 stores at present. Even adding two more stores, the company will not have significant distribution, especially compared to major competitors like the Bed Bath and Beyonds of the world. Global Gadgets would be advised to add new stores to areas adjacent to the current distribution area so that it can expand the existing network rather than building an entirely new one, should it choose this route. The growth of the existing network, however, is essentially capped by the ability of the company to grow the gadgets part of the business, as this lies at the heart of the current distribution network. What this means, though, is that the two businesses (gadgets and housewares) will be tied together. If there is no synergy between these businesses, then there is no value to tying them together, and the distribution channel for

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