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I know that control is an important aspect of any successful business. I was wondering what others think about how control is spread out amongst tangible product companies. Manufacturer vs. Distributor vs. Retail.
My take:
Manufacturer: They have the most control over their specific products but are not as agile as the distributor or retailer in regards to adapting to the market. This means that they could be vulnerable to market changes that they cannot control.
Distributor: have control over retailers in some respect and through partnerships with manufacturers can exert quite a bit of control over their products. They are sill vulnerable to market shift but to a lesser extent then manufacturers. Much like they can ruin a retailers day the same can be said for a retailer that no longer wants to carry their products. Retailers can often flex on distributors to lower their prices etc.
Retailer: They are the most agile in responding to the market giving them a little more control over their profitability by selecting the right products. They also have the end consumer so in many industries they have their pick of suppliers to choose from. In this aspect they have a lot of control; think the control walmart has over suppliers.
At the end of the day what part of this business do you think has the most control.
My take:
Manufacturer: They have the most control over their specific products but are not as agile as the distributor or retailer in regards to adapting to the market. This means that they could be vulnerable to market changes that they cannot control.
Distributor: have control over retailers in some respect and through partnerships with manufacturers can exert quite a bit of control over their products. They are sill vulnerable to market shift but to a lesser extent then manufacturers. Much like they can ruin a retailers day the same can be said for a retailer that no longer wants to carry their products. Retailers can often flex on distributors to lower their prices etc.
Retailer: They are the most agile in responding to the market giving them a little more control over their profitability by selecting the right products. They also have the end consumer so in many industries they have their pick of suppliers to choose from. In this aspect they have a lot of control; think the control walmart has over suppliers.
At the end of the day what part of this business do you think has the most control.
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