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A competitive
advantage that cannot
be quickly and easily
copied by competitors
Product
Competitive Advantage
Based on
Channel
Retailers
Concentration of Sales
Among the
Top 50 Retail Firms
Conventional
Department Stores
Discount
Mass Merchandisers
Variety Stores
Misc. General
Merchandisers
Athletic Footwear
Toy Stores
Retailer
Distribution
Costs
Autos
Distribution
Manufacturing
Raw Materials
and
Components
Software
Gasoline
Fax Machines
Packaged Foods
15%
25%
28%
30%
41%
40%
65%
19%
30%
33%
45%
10%
53%
40%
26%
Disintermediati
on
The Internet
Wireless Communications
B2C and B2B E-Commerce
Cell Phones
Global Telecommunications
Robotics & Automated
Warehousing
Computerized Salespeople
Competition
Out
Reengineering
Restructuring
Downsizing
Flat
Organizations
Lean and Mean
In
Growth
Expansion
New Markets
Market Share
Top Line
Revenue
Translation
By getting channel members to focus on your
products to a greater extent than your
competitors, you gain market share and
growth
where:
Cs= degree of customer satisfaction
P1= product strategy
P2= pricing strategy
P3= promotional strategy
P4= place (channel strategy)
Distribution
Dual Distribution
Exclusive Dealing
Full-Line Forcing
Price Differentiation
Price Maintenance
Refusal to Deal
Resale Restrictions
Tying Agreements
Contrasts Between a Traditional Logistics System and Supply Chain Based System
Factor
Traditional
Inventory Management
Logistics System
Independent Effort
Minimize Firm Costs
Short-Term
Limited to Needs of
Current Transaction
Transaction Based
Not Relevant
Time Horizon
Information Sharing and
Monitoring
Joint Planning
Compatibility of Corporate
Philosophies
Channel Leadership
Sharing of Risks and
Rewards
Inventory Flow
Not Needed
Each Channel Member
on Their Own
Warehouse Mentality
Storage Safety Stocks
Long-Term
Continuous Effort to
Gather and Monitor
Ongoing
Important for Major Initiatives
Required for
Coordination and Focus
Risks and Rewards Shared
over Long-range
Distribution Center
Orientation-JIT, Quick
Response, Cross Docking
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
Claims Response
Billing Procedures
Average Order Cycle Time
Order Cycle Time Variability
Rush Service
Product Availability
Competent Technical Reps
Equipment Demonstrations
Availability of Literature
Accuracy in Filling Orders
Terms of Sale
Protective Packaging
Degree of Cooperation
Find
Reward Power
Coercive Power
Legitimate Power
Referent Power
Expert Power
Role Incongruities
Resource Scarcities
Perceptual Divergencies
Expectational Differences
Decision Domain
Disagreements
Goal Incompatabilities
Communication Difficulties