Substantial Changes in Channel of Distribution
Rao (1999) states that distributors and channels of distribution has existed for a long period of time as these channels are used to get products to customers in convenient, faster, cheaper, and more effective manner. Given the significance of distribution in getting products to customers, businesses or companies in every industry are increasingly looking for suitable channels of distribution. Effective, cheaper, and faster distribution of products to customers is considered critical toward the successful and profitable operations of any business/company. Consequently, different industries continue to experience changes in their channels of distribution as means for enhancing efficiency and profitability. These substantial changes are influenced by various factors, but focus on enhancing efficiency and profitability.
The retail industry is one of the industries that has experienced substantial changes in the channels of distribution. These substantial changes in the channels of distribution in the retail industry are evident in the emergence of electronic retailing (Krafft & Mantrala, 2011). Electronic retailing dominates the retail industry in the new millennium and has acted as a significant change in the distribution channels in this industry. Traditionally, retailers would distribute their products through specific distributors and locations and customers would need to visit these...
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