Expertise and economies of scale in production do not necessarily translate into expertise and economies of scale and/or scope in distribution. Discuss this statement.
Answer to relevant QuestionsWhy do you suppose the average costs of performing many distribution tasks are lower for intermediaries and facilitating agencies than for producers and manufacturers? The average size of retail units (as measured by sales volume) has been increasing. What are some of the implications of this trend for channel management in producing and manufacturing firms? Jacobson Companies, headquartered in Des Moines, Iowa, describes itself on its Web site as a “can do” third party logistics company. The company is indicative of the new breed of logistics services firms that can do it ...Discuss the fundamental channel management issues associated with recessionary, inflationary and deflationary periods in the economy. Home Depot, Toys “R” Us, Staples, Best Buy and many other giant retailers (often referred to as “category killers” or “big box” retailers because of their dominance in particular merchandise categories and the ...
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