A Distributor plays a key intermediary role in delivering the products and goods between the manufacturer and the end consumers. The distributor is one of the main elements in the supply chain management process.
Today, we’ll discuss the SWOT analysis of Distributor; it outlines strengths and weaknesses; opportunities and threats that the company has to face; as a business strategy analysis example company.
Types of Distribution
- Selective Distribution
- Mass Distribution
- Exclusive Distribution
- Intensive distribution
Channels and Intermediaries of Distributors
- Jobbers
- Agents
- Retailers
- Wholesalers
Top Distributor Companies and Brands
- Ferguson Enterprises
- Winsupply
- RE Michel Co
- Russell Sigler
- The Habeggar Co
- Gustave A Larson
- Sid Harvey Industries
- AC Pro
The SWOT analysis of Distributor would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Distributor SWOT analysis as a business strategy analysis example company as follows;
Strengths of Distributor
Some of the main internal strengths in the Distributor SWOT analysis example company as business strategy analysis are as follows;
Product Delivery
Distributors play a key and critical role in delivering the products, food supplies, medicine, tools, equipment, and other items from the manufacturers to the end consumers. Without multiple distribution channels, the global consumer market wouldn’t have achieved so much growth and progress.
Time Management
Distributors are always working on close deadlines. This is because the receivers and the mass customer market of the relevant product category are waiting for the distributors to deliver supplies, materials, equipment, and various other products and goods. They have to follow the strict time schedule of delivering supplies and materials to the recipient party on time without any delays.
Sales Control & Market Growth
Out of the distribution of products and goods, the distribution of finished goods is highly time-sensitive and critical. In fact, it defines the market success, growth, and sale of the particular product; it is because the retail customer is waiting for the product. Any distributor who would deliver the product first would win the market share with higher sales.
Experience
Experience matters a lot in the Distributor business. They know the worth and value of the particular distributed product and goods; time urgency, bargaining and negotiation skills, and route selection. Collectively, all of these factors would help them to smoothly perform various operations and timely deliver the finished goods to end consumers.
R&D
Distribution and logistics companies are investing a significant amount of capital resources in research and technological development. They are working on autonomous vehicles, driverless technology, and AI tools for choosing the best route.
Weaknesses of Distributor
Some of the main internal weaknesses in the Distributor SWOT analysis example company as business strategy analysis are as follows;
Limited Finance
You can’t successfully run the Distribution business with limited financial resources. In fact, it requires heavy capital investment for the vehicle, fuel, insurance, and license fee to get your vehicle on the road. On the other hand, the new distributors don’t have sufficient funding, and they can’t run and operate successfully.
High Training Cost
Distributors and logistics companies need to invest a significant amount of resources in training drivers, earning licenses, and other certifications. Without training, the drivers and the delivery service providers would make blunders and increase the operational cost.
Opportunities for Distributor
Some of the main available opportunities in the Distributor SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
Distributor companies should expand their delivery business into far-off distant locations, regions, and countries across the world. The global market holds great growth potential for the delivery service and distribution business. It allows them to increase their market network and sales.
Portfolio Expansion
Along with market expansion, Distributors should expand their products and service portfolio by launching driverless and drone delivery services. It would help the company to target new segments of the customer market and increase their sales.
Innovative Technology
Research and innovation technology is the key to the growth and success of any business, Distributor is no exception. The innovative technology could be in the form of drone distribution, autonomous vehicles at the mass distribution scale, and another efficient and sustainable mode of transportation.
Threats to Distributor
Some of the main potential threats in the Distributor SWOT analysis example company as business strategy analysis are as follows;
Competition
Distributors are facing tough competition from various logistics and delivery service-providing companies. They all have established a significant market share and a very loyal database of customers; their market presence is negatively impacting the sales of the company.
Environmental Vulnerability
Distribution businesses are highly vulnerable to external environmental factors like political, social, environmental, riots, strikes, and others. They would cause delays and damaged deliveries in severe cases, and jeopardize the company’s reputation in the long term.
Conclusion: Distributor SWOT Analysis Example Company |SWOT Analysis of Distributor |Business Strategy Analysis
After an in-depth study of the swot analysis of Distributor; we have realized that the distribution business plays a key role in the growth of the global economy. If you are learning about Distributor SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
References
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
