Companies with strong distribution network are winners

by Ashvini on February 8, 2011 · 1 comment

in Business

Company with a strong distribution channel will always win over weak ones. Look at Wal-mart. It is a leader in its segment because it can consistently offer cheaper goods. How does it do that? By having so many distribution centers to serve its customers.

Here in India, State Bank of India is one of the world’s banking giant. Its branches are in those parts of India where sometimes roads do not exist. Due to its reach however, it is able to offer its services to far more customers than any other bank.

Pepsi has such a strong distribution network that people joke that they can get Pepsi anywhere but not water.

You may even see an outlet of one company selling goods and services of another. For e.g. many banks sell mutual funds of other financial companies or one shop selling multiple telecom recharge vouchers.

In today’s time, internet has reduced many of the demands of traditional distribution channel. However I believe strong distribution network is still the key to winning the market.

To succeed we need to either develop our own network or piggyback on someone else to maximize reach of our products.

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{ 1 comment }

Aswani February 8, 2011 at 10:39 pm

I agree buddy. The better the distribution channel, the better will be availability of the services and thus better will be the loyalty of the customers. Its high time that companies realize these things and do the needful so that it is benefiting to all in the long run.

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