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Internet-Based Channels of Distribution Name University Date Internet-Based Channels of Distribution Many a commentator has noted the contribution of the Internet and technological advancements in the business world. Closely related to the Internet are such technologies as electronic money and social media, all of which have been associated with significant changes in the ways businesses operate in the modern world…
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In instruction box

Download file to see previous pages... It is indeed not an uncommon phenomenon to encounter businesses marketing and selling their products online either through their own portals or by relying on sites owned and managed by third parties. In the first case, the company produces and markets the product online without necessarily relying on players in the traditional distribution channel such as distributors, wholesalers, and retailers. This paper will discuss how technological advancements and the Internet have impacted product distribution in the world today. The Case of Fujian Wanhua Electron and Technology Company Limited One company that relies on the Internet to distribute its products is the Fujian Wanhua Electron and Technology Company Limited. The company is based in China and was established in 1996 (Fujian Wanhua Electron & Technology Co. Ltd., 2013). The company produces a variety of electrical and electronic appliances for home, business, office, and corporate use. Some of the products that the company manufactures and markets include car alarm systems, cordless telephone communication systems, network management systems, and home/office wireless burglar systems (Fujian Wanhua Electron & Technology Co. Ltd., 2013). ...
Advantages of Direct Online Distribution of Products There are several advantages associated with direct distribution of products using the Internet. One main advantage with this method of distribution is its association with low overhead costs according to Time (2013). What this means is that the company is able to make a bigger profit that it would with the inclusion of intermediaries. This is the case considering that the company does not share the profits it gets with the intermediaries. Furthermore, a business that does direct online distribution is guaranteed to reach a global audience (Time, 2013). For example, although Fujian Wanhua Electron and Technology Company Limited is based in China, many people know about it or at least about its products across the globe. This may not be the case with businesses that rely on the traditional method of distribution. In many cases, they end up having a market that is limited in reach and therefore a smaller capital base. Yet another advantage of direct distribution through the Internet is that it offers customers/consumers a lot of convenience (Time, 2013). Consumers can get to shop for the products they desire at any time of the day or night and at their convenience wherever they are as long as they have access to the Internet. What this means is that the consumers are not limited to shopping by time. Since intermediaries are not involved in the transactions, the customers benefit from the direct arrangement in that they get products at prices much cheaper than they would otherwise get with the involvement of intermediaries (Gillai & Lee, 2009). Many customers tend to like the idea of dealing directly with product producers (Time, 2013). Furthermore, the customers are more likely to receive superior customer care ...Download file to see next pagesRead More
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