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A study of supplier and distribution channels is important in understanding and serving product-markets. While in some instances producers go directly to their end-users, many work with other organizations through distribution channels. The extent of vertical integration by competitor’s backward (supply) and forward toward end-users is also useful information. The types of relationships (collaborative or transactional) in the distribution channel should be identified and evaluated. Different channels that access end-user customers should be included in the channel analysis. Fir example, vending machines comprise an important distribution channel in Japan. By looking at other distribution approaches, we can identify important patterns and trends in serving end-users. Distribution analysis can also uncover new market opportunities that are not served by present channels of distribution. Finally, information from various distribution levels can help in forecasting end-user demand. Analysis of the value added system considers important trends (e.g., supplierconsolidation), relative power of organizations at different levels in the system, and
possible changes in the system. It is important to identify different value-added systems
used by other firms in the industry to move materials and supplies to producers and
producers' products to consumer and organizational end-users. These variations in
value-added systems may indicate potential opportunities or threats for the organization
conducting the competitor analysis,
The strategic marketing process
Journal of Strategic Marketing
SMART is a custom marketing research
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