This PPT slide, part of the 26-slide Porter's Five Forces PowerPoint presentation, outlines distinct distribution channels catering to 2 primary end-user segments: business and home users. It categorizes these channels into 2 main groups: value-added channels and mainstream channels. Each category is accompanied by definitions and examples, providing clarity on how these channels operate and their target audiences.
Value-added channels include Direct Sales, System Integrators, Value-Added Resellers (VAR), and Dealers. Direct Sales involve transactions facilitated by a manufacturer's sales force or agents. System Integrators offer tailored solutions, enhancing the value proposition for clients. VARs provide unique, off-the-shelf solutions, while Dealers represent traditional computer channels that contribute support and training, but lack unique offerings.
Mainstream channels consist of Computer Superstores, Mass Merchants, Consumer Electronic Stores, Office Stores, Mail Order, and Direct Response. Computer Superstores are large retail outlets with significant revenue from computer-related sales. Mass Merchants offer a variety of products, including electronics. Consumer Electronic Stores focus on electronic merchandise, while Office Stores cater to office supplies. Mail Order involves third-party sales via telephone, and Direct Response refers to direct sales from manufacturers without intermediaries.
The slide concludes with a note on the increasing home PC usage, which has bolstered the strength of mainstream channels, particularly among retailers. This insight highlights the evolving market dynamics and the importance of understanding distribution strategies to effectively reach target customers. The content is structured to facilitate quick comprehension, making it a valuable resource for executives aiming to refine their distribution approaches in a competitive environment.
This slide is part of the Porter's Five Forces PowerPoint presentation.
This presentation is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. It teaches a practical consulting framework actively used by tier-1 consulting firms.
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