Forwarding Channel Allies

Remedying a Cost Disadvantage Associated with Activities Performed by Forwarding Channel Allies: There are three main ways to combat a cost disadvantage in the forward portion of the industry value chain:

a. Pressure dealer-distributors and other forward channel allies to reduce their costs and markups so as to make the final price to buyers more competitive with the prices of rivals.

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b. Work closely with forwarding channel allies to identify win-win opportunities to reduce costs.

c. Change to a more economical distribution strategy, including switching to cheaper distribution channels or perhaps integrating forward into company-owned retail outlets.

Translating Proficient Performance of Value Chain Activities into Competitive Advantage

A company that does a first-rate job of managing its value chain activities relative to competitors stands a good chance of leveraging its competitively valuable competencies and capabilities to a sustainable competitive advantage.


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