In: Operations Management
Consider a time when you wanted to buy a certain product but could not find it. What was your reaction? Why? How did the lack of availability affect your perception of the company and of the product? Did it make you want it more or did it make you frustrated so that you lost interest. Speculate on the supply chain and distribution channel strategy that the company was trying to achieve.
Step 2 Now consider a product that is widely available. What is your perception of the product and the company? How is your perception influenced by the ubiquity of the product? Speculate on the distribution strategy and goals for the company.
Step 3 Compare and contrast your findings in the first two steps. How did the availability of the products influence your thoughts and attitude toward the product and the company? Speculate as to whether the companies' distribution strategies have proved effective and served them well.
Consider a time when you wanted to buy a certain product but could not find it.
I was upset when I could no longer purchase the ink for my printer. Circuit City electronics was the only place that sold the ink and the last store finally went out of business. After searching Walmart, Target, and other various electronic and computer stores, I was furious because I would now have to invest in a new printer.
When the last store closed down in my city, I was very frustrated. For some reason, the Circuit City Franchise was the only company that sold my particular ink. When the last store in the neighboring city shut down, I wasn’t as upset because I was mentally prepared since I knew it was coming. I was disappointed with the overall process because I couldn’t figure out the reason why only one store would sell this particular ink for a very popular name brand printer.
The supply chain and distribution channel strategy would have been materials first, then manufacturing, delivery of the product, and lastly selling to the end user.
Now consider a product that is widely available.
Coca-Cola is the company I chose for widely available. My perception on this company is that this company delivers. No matter where you go, there will be Coke products available. They have been around for years and they will not be going anywhere anytime soon.
Because this product is everywhere and just about always readily available, I’m always wanting to grab one. It’s a struggle to fight it off sometimes because too much of it isn’t always good.
I believe that Coke products could have two forms of distribution strategies for the company. The first form of distribution could go directly from the manufacturer and delivery of the product to the consumers by way of vending machines. The second form of distribution could start at the manufacturer, then the delivery process to the retailer such as a grocery store, and then to the consumer. The goals of the company would be to have their products available to anyone around the world.
Evaluate the distribution channels of these two products.
The delivery process is very similar for both products. They both start with the manufacturer and end with the consumer. The one key difference for Coke is that they can skip the whole retailer stage if they choose to and go directly from the manufacturer to the consumer.
The availability of the Coke product makes very happy and definitely influences my thoughts and attitude for this company. I would write a great review about this product and its availability at any moment. I have lost a little faith in Lexmark printers. I am scared to purchase anything else from that brand. If you bought a printer from them, how would you know if your ink is sold everywhere or just at one location. It’s not right and it’s not fair. I would not recommend this company to anyone.
I believe both companies distribution strategy did serve them well. Before Circuit City went out of business in our area, the ink for my printer was always available. I never had a problem with Lexmark until that moment. I have never had a problem with Coke at all. Whenever I need one, I can find a Coke nearby.