Multichannel Distribution System: Distribution Strategy to Deliver Value

Distribution Strategies To Deliver Value
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Distribution Strategies To Deliver Value
A multichannel distribution system employs different channels in bring products to the customers (Hufford, 2016). A combination of retail and distribution in collaboration with e-commerce is a perfect example of multichannel distribution and has been applied by most multinational companies, including Apple (Riley, 2018). The strategy poses both challenges and benefits to the manufacturers. The company can reach a wide variety of customers, expanding customer reach and potentially influencing sales positively. It also provides consumers with alternative channels to shop for their products, thus increasing customer conveniences that are highly valued. On the flip side, this distribution model can cause cannibalization of sales, in that as the customer seeks more convenient shopping channels, other channels doing badly becomes expensive to manage. In addition, using multiple channels in product distribution increases ...