Distribution Channels

Respond to the following in a minimum of 175 words:

Provide an example of how geographical location can affect your selection of distribution channels.
Alternate topic:

Choose a product that you feel is either too expensive or too cheap and explain why you feel that is the case.

ANSWER

Distribution Channels

The geographical location of a targeted market with a favourable demographic for any product dictates the kind of distribution channels that a manufacturer might choose.  Distribution channels are different modes of transportation that producers might use to get goods to their intended customers (Fernando, 2021). Distribution channels mainly comprise road, rail or water. Distribution channels are an essential factor for companies like Amazon, which mostly rely upon delivering goods to their customers. Typically, they distribute goods to every corner of the world and use different distributions channels depending on the buyer’s geographical location.

For instance, Amazon may opt to use either transportation through the air or water depending on the good being delivered and the location. Since Amazon is located in the United States, they might consider delivering goods through container ships for customers located in South Africa. This favours them in several ways. First, the geographical location of South Africa favours transportation through shipment as they have a port, making it economical. It would be possible to transport goods through cargo planes, but the price would be significantly higher than shipping. Shipping would also be favourable distribution channels depending on the type of product being transported to South Africa. Transporting a car to South Africa would require shipping due to the weight of the vehicle and the location of the country.

References

Fernando, J. (2021). Distribution Channel. Retrieved from https://www.investopedia.com/terms/d/distribution-channel.asp#:~:text=A%20distribution%20channel%20is%20a,distributors%2C%20and%20even%20the%20Internet.