A manufacturer that invests in fragmentation when faced with wholesale consolidation is most likely ________.
A) focusing on forward vertical integration
B) creating partnerships with large distributors
C) increasing its attractiveness to channel members
D) forming alliances with small wholesaler-distributors
E) developing additional channel power through outsourcing

Question

Quizplus · Accepted Answer

When a manufacturer invests in fragmentation in response to wholesale consolidation, it is likely forming alliances with small wholesaler-distributors. This approach can help maintain or increase distribution channels and flexibility in the face of larger, consolidated competitors.

A Manufacturer That Invests in Fragmentation When Faced with Wholesale