Wednesday, March 23, 2011

Business Model - Distribution

Continuing further from the last model of Franchising which was expansion focused, we look at the delivery of goods aspect in this blog.

Distribution forms the critical link ensuring that the products produced reach the customers. In the whole of the business world, distribution forms the critical link that ensures responsiveness demanded by the customers and the businesses alike.

The field of the distribution is so critical that there are numerous companies which completely involve themselves into the distribution of products; Distribution is a critical factor in the Supply Chain of any industry. These companies generally offer the following benefits - storage, credit and collection, logistics. These are very critical for the smooth functioning of the businesses.

Innovations in the distribution model that have been hailed world over include the Dell model of computer delivery, the FedEx in shipping services. These innovations have created a lot of value add for all stakeholders involved with them. Their success has highlights the fact that any innovation in the area of distribution creates a value add that would benefit the entire stakeholder community (some more and some less but none the less all).

There are number ways in which such an excellence in the business model has been attained; summarizing it wouldn’t do justice to it, so at a later stage as we progress in the blog, we would deal with examples of distribution excellence individually.

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