Some companies in the industry have begun to replace their direct sales forces with independent distributors (or vice versa)
Symptom: Some companies in the industry have begun to replace their direct sales forces with independent distributors (or vice versa).
Implications for the market:
End-user needs will drive changes in the methods and channels of distribution. Some end-users will need less counsel, modest support, and bigger deliveries. Others will need a good deal of support in every area, though the type of support may change. In general, distribution evolves from high value added to low value added as end-user support demands decline.
End user needs can also bring about the creation of new price points to better match product characteristics to evolving segments. Most commonly, the new price points are low end product/service combinations built for the low value added channels.
All competitors in the market must react to these changes. As the end user needs and channel shares change, so must the company's product and service business proposition.
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Perspectives: Conclusions we have reached as a result of our long-term study and observations.