Assignment 1: Discussion—Dual Distribution
Some manufacturers select the strategy of selling their products through both independent retailers that carry more than one brand of the same type of product while also selling their products through retail stores that they own and operate with their own employees. This is referred to as dual distribution.
Assume the following scenario:
You are interested in purchasing a new type of electronics product that is distributed through dual distribution with the nearest manufacturer-owned store located a few miles from your home. A store you are familiar with that carries that manufacturer’s brand plus three other brands of the product you are interested in is located about the same distance from your home, but in the opposite direction.
You are anxious to use the product while friends are visiting this evening, but will only have time to get to one of the stores before store closing time.
- Explain which store you would drive to and why you selected that store.
Use the Internet to research dual distribution and respond to the following:
- Describe the likely reasons for manufacturers of electronic products to adopt dual distribution.
- Describe the potential disadvantages that might materialize for manufacturers who adopt the dual distribution strategy.
Write your initial response in 3-5 paragraphs.