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Chapter Fourteen 14 Global Distribution Rationalizing Local Channels Wholesaling and Retailing Structures wholesaling; types, business practices, integration retailing practices; integration, lifestyles, global retailing Adjusting Channel Relationships

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chapter fourteen

Chapter Fourteen

14

Global Distribution

rationalizing local channels
Rationalizing Local Channels
  • Wholesaling and Retailing Structures
    • wholesaling; types, business practices, integration
    • retailing practices; integration, lifestyles, global retailing
  • Adjusting Channel Relationships
    • changing distributors, dual distribution
    • shortening channels, integration
    • creating new channels
size and number of wholesalers in selected countries
Size and Number of Wholesalers in Selected Countries

14-2

Exhibit 14.1

Source: Retailing in the European Single Market, 1993. These figures are adapted from Table EUR1a:“Importance of Commerce in the EC—absolute values (1987-91)”

japanese import distribution alternatives distribution route of italian spaghetti
Japanese Import Distribution Alternatives - Distribution Route of Italian Spaghetti

14-3

Conventional Route

Small wholesaler

Producer

Processing and packing plant

Import agent

Primarywholesaler

Intermediary wholesaler

Retail price: 170yen/300g package

Retailer

Restructured Route

Depots Distribution Wholesalers Distribution centers

Processing and packing plant

Importing company A/C

Producer

Retailer

Savings: 25%

Retail price: 128yen/300g package

Exhibit 14.2

Source: Allied Import Company, as reproduced in Michael R. Czinkota, and Jon Woronoff, Unlocking Japan’s Markets. Chicago, IL: Probus, 1991, p. 104. Used with permission.

size and number of retail outlets in selected countries
Size and Number of Retail Outlets in Selected Countries

14-7

Exhibit 14.4

Source: Retailing in the European Single Market, 1993. These figures are adapted from Table EUR1a: “Importance of Commerce in the EC—absolute values (1987-91)”

international comparison of wholesale trade practices
International comparison of Wholesale Trade Practices

14-4

Exhibit

14.3

Source: Distribution Economics Institute, Survey on International Comparison on the Distribution Industry, May 1990.

global logistics and channels
Global Logistics and Channels
  • Global Distribution
    • issues of transportation between countries
    • technology and competition
  • Modes of Transportation
    • air express; business and consumer markets
    • ocean carriers; containerization
    • overland; rail, truck, roll-on-roll-off
    • inventory management; distribution centers
  • Parallel Distribution
    • definition and effects
    • supply, dealer, demand interference and strategic attack
  • Global Channels
    • availability, tie-up, coordination and control
seiko s authorized and unauthorized channels of distribution
Seiko’s Authorized and Unauthorized Channels of Distribution

14-8

Europe

Hong Kong

Japan

North America

Importer

Importer

Importer

Distributors

Distributors

Distributors

Distributors

Retailers

Retailers

Retailers

Retailers

Solid arrows denote the flow of Seiko watches through authorized channels of distribution.Broken arrows denote the flow of Seiko watches through unauthorized channels of distribution.

Exhibit 14.5

Source: Jack Kaikati, “Parallel Importation: A growing Conflict in International Channels of Distribution,” Symposium on Export-Import Interrelationships, Georgetown University, November 14-15, 1985.

kfc in japan video
KFC in Japan Video

This video has content relevant for several topics in the course. Describe the challenges KFC has confronted in its distribution strategy and ONE of the following areas. Has the firm responded to these challenges effectively? Explain.

  • Japanese management styles and practices
  • Corporate strategies for international markets
  • Product and branding strategies
  • Market entry strategies
  • Promotion strategies