This PPT slide, part of the 159-slide Strategy Frameworks Manual PowerPoint presentation, presents a comparative analysis of market dynamics with and without intermediaries, specifically focusing on distribution strategy. It outlines 2 distinct scenarios: one where customers engage directly with manufacturers and another where intermediaries facilitate the connection between customers and manufacturers.

In the first scenario, labeled "Market without Intermediaries," each customer must reach out to every manufacturer to evaluate products and prices. This direct interaction results in a significant number of potential contacts—16 in total—since each of the 4 customers could potentially contact all 4 manufacturers. This model illustrates a cumbersome process, leading to increased time and effort for customers.

The second scenario, "Market with Intermediaries," highlights the role of intermediaries in streamlining this interaction. Here, manufacturers supply their products to intermediaries, allowing customers to make a single contact to access multiple manufacturers. This setup drastically reduces the number of necessary contacts, thereby minimizing search time and costs for customers. The intermediary effectively enhances the efficiency of the distribution process, creating added value by simplifying the customer experience.

The slide emphasizes that intermediaries not only improve operational efficiency, but also enhance customer satisfaction. By reducing the complexity of the purchasing process, intermediaries play a crucial role in optimizing distribution channels. This analysis serves as a compelling argument for considering intermediaries in distribution strategies, particularly for organizations looking to enhance customer engagement and streamline operations.

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Strategy Frameworks Customer Experience Customer Satisfaction