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Vertical Integration

1. Wal-Mart stores are everywhere, or at least it seems so. You are manufacturing a consumer product and you want to get it out to the marketplace. Why would you want to do business with Wal-Mart to market your product? Why would you choose to use a different retail outlet?

2. One of the biggest problems in using distributors as a market channel is to keep them motivated to sell and promote your product. The distributors generally handle other products and your company may have to fight for mind share. What strategies would you recommend to you company, or to the distribution process in general, to keep your products and offerings rolling? Remember, everything has a cost, so some solutions may sound good but are cost prohibitive.

response is 509 words

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1. Wal-Mart stores are everywhere, or at least it seems so. You are manufacturing a consumer product and you want to get it out to the marketplace. Why would you want to do business with Wal-Mart to market your product? Why would you choose to use a different retail outlet?

For a manager to consider using Wal-Mart is quite important. They have many distributors worldwide and partner with them to gain profit within their organization through mergers and aquistions. Wal-Mart is known to make products affordable for individuals and families, which is why they are a great fit. Not only that, but sometimes all of their distributors come together at Wal-Mart meetings that they have during the year, and help each other out in ...

Solution Summary

This solution discussed Wal-Mart and vertical integration.

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