Influence of Distribution System and Service on Performance

INFLUENCE OF DISTRIBUTION SYSTEM AND SERVICE ON PERFORMANCE 3

Influence of Distribution Systemand Service on Performance

Influence of Distribution Systemand Service on Performance

The statement by Iaccocca to theeffect that business entities that have the best distribution systemand the best service would win all the marbles comes off as extremelyaccurate. Business entities are always striving to remain extremelyprofitable and competitive, which can be achieved through being wayahead of their competitors. This means that they have to be in thegood books of consumers as far as the quality of services isconcerned (Garmise, 2006).More often than not, consumers would go back for a particular good orservice in an entity in instances where they feel that they get themost utility for every coin that they use on the services andproducts. Not only would such customers go back to the entity butalso refer their friends and relatives to the same (Allard,2004). Of particular noteis the interconnectedness between service provision and distributionnetworks. It is only business entities that have proper distributionnetworks that would have the capacity to offer the best services tothe clients in terms of responsiveness and speed of services in thelong-term. In instances where they have functional and efficientservice provision and distribution networks, business entities wouldbe likely to reduce their own costs, with the expansion of theircustomer base going a long way in allowing for exploitation ofeconomies of scale (Mahnken,2012). This underlines thefact that the success and profitability of a business entirelydependent on the distribution system, in which case the later must becharacterized by immense flexibility, efficiency and speedyresponsiveness to the likes and preferences or even concerns of theclients. This is the only way that the business entity wouldsafeguard its competitiveness in the market.

References

Allard, C. K. (2004).&nbspBattlingfor competitive advantage.Hoboken, N.J: Wiley.

Garmise, S. (2006).&nbspPeopleand the competitive advantage of place: Building a workforce for the21st century. Armonk,N.Y: M.E. Sharpe, Inc.

Mahnken, T. (2012).&nbspCompetitiveStrategies for the 21st Century: Theory, History, and Practice.Palo Alto: Stanford University Press.