Question

The initial step in channel stewardship is mapping the channels of a given industry. It calls for analyzing four major forces that drive the evolution of distribution channels in that industry. Which is an example of one of the four forces affecting channel strategy?

a) Barriers to entry in the industry
b) Intensity of competition among suppliers
c) Channel capabilities and costs
d) Availability of substitute products

Answer 1

C) Channel capabilities and costs

Step-by-step explanation:

the four forces for mapping industry channels are:

1. customer wants and needs : provide as much customer value as cheaply as possible
2. channel capabilities and costs: how can we (or the members of our distribution channel) provide value to our customers
3. channel power and influence: what company holds the power to influence other companies in the distribution channel
4. competitive postures and actions: how can our competitor deliver value