GMS 522 Lecture 9: GMS 522- Week 9

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 522
• Professor: Carlyle Farrell

Document Summary

Sequence of firms/individuals involved in making a product available to final consumers or industrial buyers: do(cid:374)"t just (cid:272)o(cid:374)sider produ(cid:272)t flo(cid:449)s (cid:271)ut also consider flow of information and titles. 11 factors involved in the design of an international distribution channel (the 11 c"s(cid:895: the first three are exogenous, last eight are controllable. Competition: channels in the country may be blocked by domestic competitors. Capital: financial requirements to set up channel, resources determine degree of channel ownership. Cost: cost involved in maintaining the channel once established (e. g. training of sales personnel, slotting fees, etc) Coverage: number of areas where product is represented and quality of representation. Control: use of intermediaries is associated with loss of control. Continuity: distributor relationships need to be nurtured for the long term. Prada has traditionally used a wholesale model in which its products were marketed through third party retail outlets. Worked until the financial crisis in 2008. Retailers began to heavily discount prada products to survive.