When Delphi-Grundig, a manufacturer of state-of-the-art car radios, decided to expand its marketing efforts into countries in which its products are not currently available, it did not have the time or resources to spend on developing new channels of distribution. What should Delphi-Grundig consider using?

Question

Quizplus · Accepted Answer

Delphi-Grundig should consider using a strategic channel alliance, which involves partnering with companies in the target market that already have established distribution channels. This would allow for a quicker and more cost-effective way to enter new markets without having to establish new distribution channels on their own. Industrial distributors typically focus on business-to-business distribution and may not be suitable for consumer markets like car radios. Franchising systems involve granting the right to use the brand and distribute products in exchange for a fee, which may not be feasible for a company like Delphi-Grundig. A channel cooperative involves collaboration among similar companies to achieve economies of scale, which may not be relevant in this case.

When Delphi-Grundig, a Manufacturer of State-Of-The-Art Car Radios, Decided to Expand