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Homework answers / question archive / Give an example of industry that has witnessed substantial changes in channels of distribution
Give an example of industry that has witnessed substantial changes in channels of distribution. What are the fundamental reasons such as consumer behavior, competition, or technology (or others) for this change? Of the fundamental reasons stated for the changes to channels of distribution, what do you see as being the most significant and why?
Mobile industry is the best example for this scenario.
Earlier mobile producer distributed their mobiles through hiring a vendor and distributing through retail stores. But now, most of the producers sell their mobiles online. They are using different social media websites to advertise and sell their products. The consumers who are interested in the mobile are making orders directly through online medium.
Reasons for such changes are:
Out of all the reasons reduction in the cost to the producers and consumers is most significant because it helps in creating demand of the products due to low price. Customer also get benefits of low price and producers also enjoys the increased demand of his products.