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How does geographical location affect your selection of distribution channels?
How does geographical location affect your selection of distribution channels?
Expert Solution
Depending on geographical distance and terrain - either offline or online distribution channels are chosen, or a mix of both. Sometimes the channels exist as direct to consumer, or to retailers, wholesalers, etc., which then supply the consumer.
A tough geographical terrain, such as mountains, might lead you to choose specialized distributors. If the geographical area is huge with millions of people, it might be better to go through a network of distributors and wholesalers and retailers. If the area served is nearby, a firm can choose to supply direct to consumers. Another example would be if a firm were located on land versus surrounded by the sea - in that case, the distribution channel would have to be by boat, as compared to trains, trucks or cars if on land.
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