Competitive Advantage through Distribution Essay
Competitive Advantage through Distribution
General Motors as a part of its restructuring is planning to cut down on its distributors. The point that arises here is how this move will affect them. Such a move will only result in reduction in sales of General Motors. Dealers are almost like the main customers of GM. Reducing their number will automatically adversely affect the sales. This step will also cause a lot of inconvenience to the customers too. GM needs sales to pull it out of its situation. It needs distributors now more than ever. GM does not have to incur any cost of its distributors as they are all independent entrepreneurs. Hence they are not a financial burden on GM. This step is not going to benefit GM instead they stand to lose more. The revenues may decrease and their market share will erode. Instead GM should try to decrease its manufacturing costs. They should try coming up with a solution where GM can work in collaboration with their distributors.
If, still GM opts to reduce the number of distributors and has to select from various independent distributors, they ought to keep certain selection criteria in mind. General Motors should select such distributors
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