Channel Strategies, Essay Example

I agree with the saying that “Channels of Distribution may be the best opportunity for a sustained competitive advantage.” Ultimately, the company who is able to perform the best is able to reach the greatest number of consumers and the only way to do this is by maximizing their channels of distribution. While using only one channel of distribution is adequate for a small business, it is impossible to reach a large number of potential customers in this manner. Therefore, it is ideal to use several channels of distribution, which may or may not be a part of a distribution network.

However, it is important to consider that having optimal channels of distribution are not always directly related to success. It is also highly important for organizations to market their products effectively. If a product is in high demand due to recommendations from friends and family, then an organization will be able to get away with having only one channel of distribution. Successful business is therefore a combination of effective channels of distribution in addition to demand. While these are the first two “P’s” (place and promotion) within the Marketing Mix, it is also important to consider that product and price contribute to the success of an item.

To have a sustained competitive advantage, it is also important to have the best product for the lowest price. If companies produce a similarly functioning product, it is essential to compete with them in terms of price. However, it is possible to improve a product, a company could compete on the basis of quality as well. Therefore, although channels of distribution are important to competitive success, it is also necessary to consider the product, price, and promotion in order to be maximally competitive.

References

Duber-Smith DC. (2004). Sustainable Competitive Advantage and Product Differentiation. Retrieved from http://newhope360.com/supply-news-amp-analysis/sustainable-competitive-advantage-and-product-differentiation