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need you to summaries the research that I attached in 2 pages because I'm going to make presentation about it in class. need it ASAP because it is due tomorrow. It's worth 30% of my grade so please make it perfect. Also make discussion question at the end because I'm going to submit it with my research paper Distribution Strategies Distribution Strategies Introduction Distribution refers to the path that products take between production and consumption (Daniels, Radebaugh & Sullivan, 2011). Products need to be available to the customers in the correct quantities and convenient locations (Jayachandran, 2004). Managers must identify the appropriate distribution method where the final sale of the products occurs. Companies are not only required to consider the customers’ needs but also the requirement of the intermediaries who help in the distribution of products to the consumers (Daniels, Radebaugh & Sullivan, 2011). The choice of the most effective distribution channel is crucial in distribution strategy. Other important factors to be considered in distribution strategy are the degree of channel integration and selection of the distribution intensity (Egan & Thomas, 2010). The purpose of this paper is to provide an overview of distribution strategy and distribution partnership. Distribution strategies Global multinational enterprises (MNE) face many challenges in standardizing distribution internationally. Countries have different distributions systems, and it is difficult for MNE to modify them because they are intertwined with the country’s economic, culture and legal environment (Daniels, Radebaugh & Sullivan, 2011). The essential elements of a distribution strategy are channel selection, distribution intensity, and channel integration. In the selection of the channel for distribution of the product, it is important to identify the factors that affect it. Products are distributed to consumers either through channel intermediaries or directly (Jayachandran, 2004). MNE must consider factors that affect the distribution of goods in a given country. They include the cost of paying retail workers, laws in the chain stores, efficacy of delivery, the trust the owners have in employees, infrastructure system quality and legislation restricting the operating hours and the size of stores. The choice of the channel to be use is influenced by nature of the product, supplier, market and competitive factors. Product issues affect the distribution strategy. Large complex products that require close contact with customers and suppliers are often sold directly. Bulky, perishable and products that are difficult to handle favors direct distribution. A key supplier factor that influences the distribution strategy is the availability of resources. Lack of managerial or financial resources limits the firms’ ability to recruit sale force. Instead, the firm has to use distributors. Intermediaries may be used where the producers lack adequate selling skill. Broad product mixes make direct distribution of goods cost effective, and direct distribution is required when a firm requires control of the operations. The use of powerful intermediaries may lead to loss of control or market power on the part of the firm (Daniels, Radebaugh & Sullivan, 2011). Market-based consideration in the choice of distribution strategies are the needs and expectations of the buyers, availability of the distributor, demand and the location of the customers. The preference for the buyers’ shapes the selection of the distribution channel in that they may prefer to make purchases in a convenient location or certain types of shops. Failure to consider these preferences may result in market failure. The availability of the distributor to distribute products influences the choice of the distribution channel. When the distributors are unavailable or unwilling to carry the product the only option is to direct distribution. The location and concentration of the customers affect the choice of a distribution strategy appropriate for making the products available in the market. The use of intermediaries is more likely when the customers are many but geographically dispersed and purchased goods in small quantities. Conversely, clustered customers, who buy good in large quantities is likely to favor direct distribution. Moreover, sales volume and cost determines whether a company handle it own distribution or not. When the sales are low reliance on intermediaries is economical. As the sales grow, a company may consider handling its distribution to gain more control. However, it may be difficult for small firms that lack adequate resources. Distribution intensity involves the choice of selective, intensive and exclusive distribution (Egan & Thomas, 2010). In selective distribution, a limited number of outlets are used in each geographical area. In this type of distribution, competition is reduced hence it is preferred by the distributor to other strategies. It makes use of several intermediaries. It is also advantageous to the firms or suppliers in that it lowers the transaction costs. The intensive distribution involves the utilization of all the available outlets to enable the supplier to gain a saturation cover. The distribution strategy favors the products brought on a convenience basis. The primary consideration of customers to purchase certain products tends to be logical convenience. Thus, the distribution strategy must be devised to deliver products on these consumer service criteria. This is mostly for convenient products. The reason for developing the maximum outlet possible in intensive distribution is to ensure that the product is widely available in the market (Verma, 2012). Exclusive distribution is only used where only one channel intermediary is used per geographical area. It restricts outlets lowering the bargaining power of the customers. In exclusive distribution strategy, products are distributed through very limited distribution channels. It offers several advantages to the distributors. These include loyalty, commitment and greater control over the different level of services provided by the reseller. However, exclusive strategy faces the risk of over-reliance on a fewer distributors and loss of revenue due to limited availability of products (Egan &Thomas, 2010). Channel integration is a significant factor in distribution strategy. Suppliers must consider the degree of integration of channel required for effective distribution of products. The option available for channels integration includes franchising, independence between intermediary and producers and channel ownership by the supplier (Egan & Thomas, 2010). A franchise refers to a legal contract that specifies the obligation and right of every member. The supplier is required to provide managerial, marketing, financial and technical services for a fee. The franchise provides motivation and energy for of a locally owned outlet. A conflict can arise when the franchise feels that the marketing support is not adequate or when the supplier feels that the outlet is not providing satisfactory services. Independence implies that firms do not have control over the intermediary and thus a conflict of interest may arise. However, where the firm supplying the products or the retailer dominates the market, it may exercise considerable power. The ownership of channel gives the suppliers control over the intermediaries’ activities and provides its outlets for products (Rogers, 2001). Intermediaries play a crucial role in the distribution of goods. Firms may consider using intermediaries due to various reasons. First, distribution is a costly function and thus the involvement of intermediaries is inevitable. Second, direct selling of products is not feasible. Firms may face difficulties in selling goods directly to the consumers in the absence of intermediaries. Intermediaries can carry out distribution efficiently because they are directly linked to the customers (Dent, 2011). Distribution partnership MNEs need to collaborate with distributors abroad to ensure that its products are readily available to the consumers. It must find the best distributors and convince them to handle their products (Dent, 2011). The choice of the distributors can be very tricky for a firm that either operates domestically of internationally. However, a firm can choose the right distributor by considering some factors. First is the distributor financial strength that helps the firm to determine the potential for a long relationship with the distributor and the ability of the distributor to maintain sufficient inventory. Secondly is the connection of the distributor. The distributor must have good connections especially when the sales are to be directed to certain types of consumers. Moreover, good connections are required in countries or places where mutual loyalty and connections are more important than product and its price. Thirdly is the extent of the distributor’s commitment to the business. This is particularly crucial because it enables a company to determine whether the distributor has sufficient time to distribute the company’s product, It also help the company to identify whether the distributors the competitors’ or complementary goods. The next factor to be considered in the selection of a distributor is the current status of its facilities and equipment. The facilities and equipment held by a distributor make it easier for a company to determine whether a distributor can handle the products, readiness to form a partnership and stay in the business. Lastly is the reliability of the distributor in carrying the company’s products and making it available to the consumers in a timely and convenient manner and convenient locations. Distributors must be honest for the company to enhance its performance (Daniels, Radebaugh & Sullivan, 2011). Although companies must evaluate the potential of the distributors before forming a partnership, distributors choose the products and the company they want to partner with and handle their products. Distributors such as retailers and wholesalers carry only the products with the greatest profit due to limited space, facilities, money for inventory and personnel to sell merchandise. New companies face difficulties in getting a distributor to carry its products. Established companies may also face challenges when introducing a new product to the market. Firms that want to use the existing distributors must analyze the competition condition in the market. Moreover, companies may be required to offer incentives, use successful products to market the new ones and convince the distributors that its products are viable to get distributors to handle their products (Daniels, Radebaugh & Sullivan, 2011). References Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. (2015). International Business: Environments and Operations. Upper Saddle River, N.J: Pearson Education, Inc. Dent, J. (2011). Distribution channels: Understanding and managing channels to market. London: Kogan Page. Egan, C. & Thomas, M. (2010). CIM Handbook of Strategic Marketing. Routledge Jayachandran, S. (2004). Marketing management text and cases. New-Delhi: Excel Books. Rogers, S. C. (2001). Marketing strategies, tactics, and techniques: A handbook for practitioners. Westport, Conn: Quorum Books. Verma, H. V. (2012). Services marketing: Text and cases. New Delhi: Pearson Education.