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Chapter Fourteen

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

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  1. Chapter Fourteen 14 Global Distribution

  2. 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

  3. 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)”

  4. 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.

  5. 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)”

  6. 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.

  7. 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

  8. 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.

  9. 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

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