Experience economies of scale if you begin your own sector of distribution. However that is how the middle man benefits a company
Updates from Tuesday 24th September, 2013 Toggle Comment Threads | Keyboard Shortcuts
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avijitsingh
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Mikhail Golovanov
It gives you freedom in production: you can launch a new product faster and leave the industry easier.
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KIRIMO JOHNSTON
Less days of inventory enhances efficiency,enabling the company to reduce production costs and maximize sales meaning higher profits
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yuweizhang
1)lower risks
2)more useful information
3)quality control -
avijitsingh
3) Get better information from consumers, and then GIVE them better quality products – eventually specialize products & add value to goods
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avijitsingh
1) cut the middle man or intermediary, therefore more profits & revenue
2) reach a broader customer base by addressing value propositions -
KIRIMO JOHNSTON
the company is able to have direct feedback from their clientèle, hence can customize the product to meet the exact needs of customers
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yenalee
More effective means of communication with consumers = increased customer satisfaction.
Lesser distribution costs = greater profit margins. -
nicolatighe
Not sharing profits with other companies and complete control of operations.
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yenalee
More effective means of communication with consumers=increased customer satisfaction/demand
Lesser distribution costs=greater profit margins -
cheralynchok
-costs would be cut because materials etc are sourced locally.
-revenue goes up
-better relationships with consumers; more direct -
nicolatighe
Not sharing profits with other companies and complete control of operations.
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Mohammed Abdulrehman
lower inventory costs and improved knowledge of target market, direct customer service, eliminates markups.
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cheralynchok
-costs would be cut because materials etc are sourced locally.
-revenue goes up
-better relationships with consumers; more direct -
boyachen
Companies can contact with their customers directly, and then improve their industries based on the typical demand of customers.
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turato
1. Build strong customer relationships and levy their information
2. Can produce more profit because price and distribution is controllable -
karyko
Quickly respond to customer’s needs
Sell at more competitive prices because reduce middle man -
rebeccaketler
-costs would be cut bcause materials etc are sourced locally
– revenue goes up
– better relationships with consumer; more direct -
Kejia Li (Cindy)
1.keep in touch with customers
2.do not have to pay extra costs–cut the middleman
3. more sales -
charlespan
The company can easily build up good relationship with the consumer and control the price by themselves.
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Kate Zhengyi Ju
reduce costs-no intermediary, can set own prices; get a lot of information from consumers, such as their preferences and needs
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zhaopeng
Obviously, It saves money for the company and can get the feedback directly from the consumers
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jian(Jane) zhang
Going direct means eliminating the middle-man which lowers the costs. Therefore the price goes down
and result in more sales. -
ulfatfaraji
-direct interaction with customer, which makes for better market research
-don”t have to rely on retailers
-shorter supply chain less costs -
Iñigo Villoria
give more control over the manufacture and sale of their product
More flexibility
Brings company closer to the customers
Less to focus on -
admin
Direct business models allow companies to know their customers a lot better, which means that they’ll be able to produce what customers want
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shawnwu
-build a tight customer relationship
-make more profits since there are no retail stores share the revenue -
Lucien Lu
-strong relationships with customers
-better communication
-low reliance on retail = control over price/distribution = larger profit share -
Yanzhou Yang
Efficient information transfers.
Lower cost without extra spaces for storage. -
geniechang
faster distribution process and understands consumer needs
keep all profits instead of sharing with other distributors (lower cost)
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