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Explain how channel length and channel width can be strategically used by a retailer to position its offering in the marketplace

Explain how channel length and channel width can be strategically used by a retailer to position its offering in the marketplace

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Explain how channel length and channel width can be strategically used by a retailer to position its offering in the marketplace. Note: please refer to the given information.
Supply-Chain Length Direct supply chain: Manufacturer sells its goods directly to the final consumer • Desired length is determined by: • The size of the customer base Geographical dispersion Behavior atterns like purchase frequency LO 2 Supply-Chain Length • Average purchase size • The particular needs of customers The nature of the product • Size of the manufacturer, its financial capacity, and its desire for control
Transcribed Image Text:Supply-Chain Length Direct supply chain: Manufacturer sells its goods directly to the final consumer • Desired length is determined by: • The size of the customer base Geographical dispersion Behavior atterns like purchase frequency LO 2 Supply-Chain Length • Average purchase size • The particular needs of customers The nature of the product • Size of the manufacturer, its financial capacity, and its desire for control
Supply-Chain Width • Intensive distribution: All possible retailers are used in a trade area Selective distribution: Moderate number of retailers are used in a trade area Exclusive distribution: Only one retailer is used to cover a trading area LO 2
Transcribed Image Text:Supply-Chain Width • Intensive distribution: All possible retailers are used in a trade area Selective distribution: Moderate number of retailers are used in a trade area Exclusive distribution: Only one retailer is used to cover a trading area LO 2
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