Changing Channels: The Impact of the Internet on Distribution Strategy Harvard Case Solution & Analysis

New medium - the Internet and World Wide Web - changing channels of distribution, as no other force since the Industrial Revolution. This change many of the assumptions on which the channel structure is based, and in some cases it is transformed and even the destruction channels themselves. As a result, many brokers will die out, and new channels and intermediaries will take their place. There are three main purposes of distribution channels: to support the region's economy in routinize operations, as well as to find the information needed for the producer and the consumer. However, the Internet and Web have led to the death of distance, homogenization time and irrelevance place. Matrix model of the events lined up in comparison with the distribution functions of channels, provides guidance on the identification of traditional channels will either evolve or perish, and where new channels become available. Matrix model shows how existing firms and entrepreneurs can meet its distribution function more efficiently. This enables the identification of competitors willing to use the media to change the rules of the market. Finally, it helps managers to brainstorm ways in which existing industry may be vulnerable and completely new defined. "Hide
by Leyland Pitt, Pierre R. Burton, Jean-Paul Burton Source: Business Horizons 10 pages. Publication Date: March 15, 1999. Prod. #: BH036-PDF-ENG

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