D2.1: Discussion 2.1 – What Distribution Network Is Best? Options Menu: Forum

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Question 1:  A specialty chemical company is considering expanding its operations into Brazil, where five companies dominate the consumption of specialty chemicals. What sort of distribution network should this company use?

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Question 2:  What types of distribution networks are typically best suited for commodity items?  Why?  What type of network is best suited to highly differentiated products?  Why? 

Question 3:  Amazon sells books, music, electronics, software, toys, and home improvement products online. In which product category does going online offer the greatest advantage compared to a retail store chain? In which product category does the online channel offer the smallest advantage (or a potential cost disadvantage) compared with a retail store chain? Why?.

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