In: Finance
Provide an example of how geographical location can affect your selection of distribution channels.
Distribution channels are channels through which the producers will be getting their products to the consumers and will be dependent upon the geographical location of the consumer to a great extent.
For example, when the consumers are concentrated in a particular area and these targeted customers are having a very high share of the company's product then, company will be choosing a short channel of distribution which will be correctly catering to that geographical area because all of its consumers are concentrated in a particularly in small area.
When the consumers are scattered all around the globe are all around the domestic territory than the producer should be trying to adopt very wide channel of distribution in order to access all of its customer and provide them with the adequate products.
For example,company like FLIPKART which is operating in the Indian market has to adopt to a larger distribution channel which can cater to the entire country because it is the highest online e commerce company in India.