Aristocracies come and go, but the customer is king. Proper distribution channels how a product gets from manufacturer to customer can make your merchandise available in the right place at the right time. Developing new distribution channels is a key growth strategy for many businesses. Dell Computer started out direct, while other companies watched nervously, unsure of the royal reaction. Some grew bolder, sent out a few thousand catalogs, put up a Web site but the domain was unfamiliar and there were rumors of dragons.
Strategy is about making informed decisions.
If you decide the original value proposition is no longer valid, it may be time to move completely to direct marketing. Egghead Software seems to have come to that conclusion when it closed all its retail stores and began selling direct through catalogs and the Web. If you can t compete, it may be time to retreat. To succeed in your current channel, you may have to redefine your business and create a new value proposition. Customers may buy your products today for different reasons than they did yesterday or will tomorrow.