Question

Explain in your own words what is meant by distribution channel inertia.

Answer 1

In this highly cmpetitive world of marketing, every company has their own stragegic plans to acheive their goals and objectives. They strictly adhere to the strategic plans so as to defeat their competitors and acheive a hike in sales and profit. Once the targets are acheived the firm usually continue to follow the same strategic marketing plans. It is here in this phase the distribution channel inertia slowly starts growing. It is a very natural process that company faces this inertia because the strategic plans that once lead the company to attain profits grow outdated as time flies. The customers may become no more interesed in the marketing strategies of the company, the products may not satisfy the growing need of the customers these all will eventually end in drastic fail of the strategic markerting plans. The company may be resistant to adapt changes and give goods and services as per the new customer requirement, this resistance of the company is where distribution channel inertia starts. If required steps are not taken the company may loose its place in the global market. These are several steps to overcome this inertia.

• knowing the current demand and requirement of the customers.
• Formatting and implementing new strategic plans as per the new requirement.
• Frequently doing research on the customer reviews about their own supplies.
• Looking for new markets and keep on expanding globally.

The comapny has to adapt to the changes happening the market and make themselves available for improvisation inorder to overcome the distributin channel inertia.

For example, Nokia was the mobile manufacturing tycoon inthe time it launched the mobile phones. Nobody ever though it would face a disaster to shut down all its factories. The mistake they made was they didnt take steps to overcome distribution channel inertia. When the technology changed to artificial intelligence and touch screen concept was introduced Nokia dindnt find it relevant to adapt to the new technology changes. They thought customers woud stick on to them, they didnt analyse the need of the customers. When the customers found new advanced model of phones they simply took the new versions instead of Nokia. And Nokia faced a fata defeat. This clearly explains the need to overcome the inertia and pulling the company forward for new adventures to sucessfully survie in the global market.