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1 NK-Distribution-Challenge of Change Nirmalya Kumar Copyright © IMD International, Lausanne, Switzerland Not to be used or reproduced without permission Distribution: The Challenge of Change Nirmalya Kumar Professor of Marketing and Retailing IMD Lausanne, Switzerland e-mail: Kumar@imd.ch This presentation has been developed by Nirmalya Kumar. Please do not reproduce any part of it without the permission of the author. Thank you.
2 NK-Distribution-Challenge of Change Nirmalya Kumar Copyright © IMD International, Lausanne, Switzerland Not to be used or reproduced without permission Having the right product is essential. Given that, the battleground in the year 2000 and beyond will be the quality of distribution systems and support in the marketplace. Distribution is about aligning Who to serve? Valued Customer What to offer? Value Proposition How to deliver? Value Chain Louis W. Stern
3 NK-Distribution-Challenge of Change Nirmalya Kumar Copyright © IMD International, Lausanne, Switzerland Not to be used or reproduced without permission In distribution, we confront five major forces of change Incumbency dilemma for manufacturers Integration of supply chain International expansion of retailers Information empowered consumers Internet explosion
4 NK-Distribution-Challenge of Change Nirmalya Kumar Copyright © IMD International, Lausanne, Switzerland Not to be used or reproduced without permission Internet I don’t understand the valuations … is difficult to comprehend … is ubiquitous David Glass CEO Wal*Mart Amazon versus Barnes & Noble will happen in every industry … requires new thinking John T. Chambers CEO Cisco His (Bezos) business model boils down to ‘buy at 100 and sell at 80’ Jacques Nasser CEO Ford Motor Company … is in its infancy I don’t think we’ve seen the biggest changes at all Michael Dell CEO Dell Computers
5 NK-Distribution-Challenge of Change Nirmalya Kumar Copyright © IMD International, Lausanne, Switzerland Not to be used or reproduced without permission … and the winners are unknown www.netgrocer.com www.peapod.com www.streamline.com www.walmart.com www.webvan.com Supermarkets www.autobytel.com www.autonation.com www.carmarket.com www.gmbuypower.com www.toyota.com Automobiles
6 NK-Distribution-Challenge of Change Nirmalya Kumar Copyright © IMD International, Lausanne, Switzerland Not to be used or reproduced without permission Radical new distribution channels always change the nature of the product they are distributing Hopefully we will not face crisis driven change Peter Drucker BUT Be the change you want to create Mahatma Gandhi AND Change, even for the better, is not made without inconvenience Unknown
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