Distribution Channel
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Distribution Channel
Distribution is one of the essential activities since it helps a company to be able to supply its products to the customers. Various distribution channels can be used by various companies depending on the nature of the product. However, the distribution channel can be divided into two, and that is direct and indirect. Lenovo is an example of a company that focuses on the manufacture of different types of computers for its clients. The company has focused on the distribution of its products by employing both types of distribution.
Lenovo Company uses a direct distribution channel where it allows its customers to buy its products directly from the place of the manufacturer (Seelig, 2017). Secondly, the company has employed indirect distribution whereby the computers have to go through another distribution channel before they can reach the hands of the consumers.
Both direct and indirect distribution channels are the best for the company. Direct distribution is essential in these that it allows the customers to buy the computers directly from the company at a cheaper cost (Ding, 2017). Secondly, the direct distribution channel is important for the company since it saves on the resources that would have been used to move from one place to another as well as time. On the other hand, indirect distribution is also important for the company because it helps the company to be able to reach the customers who cannot visit the manufacturing plant (Ding, 2017). This method helps the company to expand its market and reach more customers hence increasing the sales. Also, indirect distribution is import for the company because it cost-efficient since the company will depend on its employees for sales and marketing, thus delivering the products in a better way (Rambocas, Meneses & Monteiro, 2015).
References
Seelig, M. J. (2017). U.S. Patent No. 9,754,265. Washington, DC: U.S. Patent and Trademark Office. Retrieved from https://patents.google.com/patent/US9754265B2/en
Ding, X. (2017). Modeling and Quantitative Analysis of the Impact of Direct vs. Indirect Distribution in the Performance of a Supply Network. Management & Engineering, (27), 45. Retrieved from http://search.proquest.com/openview/77bec1ff6ae4d669fd360c60275c79e7/1?pq-origsite=gscholar&cbl=2028702
Rambocas, M., Meneses, R., Monteiro, C., & Brito, P. Q. (2015). Direct or indirect channel structures. Evaluating the impact of channel governance structure on export performance. International Business Review, 24(1), 124-132. Retrieved from https://www.sciencedirect.com/science/article/pii/S0969593114001073