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Questions and Answers
What characterizes an import-oriented distribution structure?
What characterizes an import-oriented distribution structure?
In which distribution structure does demand exceed supply?
In which distribution structure does demand exceed supply?
What is a typical feature of the Japanese distribution structure?
What is a typical feature of the Japanese distribution structure?
What role do middlemen play in the distribution process?
What role do middlemen play in the distribution process?
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Which statement is true regarding the import-oriented distribution structure?
Which statement is true regarding the import-oriented distribution structure?
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What is a significant feature of the business philosophy in Japan regarding retailer relationships?
What is a significant feature of the business philosophy in Japan regarding retailer relationships?
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What is the impact of the Large-Scale Retail Store Law (Daitenho) in Japan?
What is the impact of the Large-Scale Retail Store Law (Daitenho) in Japan?
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How do consumer goods typically reach the consumer in Japan?
How do consumer goods typically reach the consumer in Japan?
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Which of the following statements reflects a characteristic of Japanese consumer goods pricing?
Which of the following statements reflects a characteristic of Japanese consumer goods pricing?
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What is one method employed by companies like Coca-Cola for inventory financing in Japan?
What is one method employed by companies like Coca-Cola for inventory financing in Japan?
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What is the primary role of agent middlemen?
What is the primary role of agent middlemen?
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Which of the following describes logistics management?
Which of the following describes logistics management?
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Which option is NOT a part of channel management?
Which option is NOT a part of channel management?
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What does the Large-Scale Retail Store Location Act pertain to?
What does the Large-Scale Retail Store Location Act pertain to?
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Which of the following is a benefit of the European Union’s unification?
Which of the following is a benefit of the European Union’s unification?
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What is a characteristic of merchant middlemen?
What is a characteristic of merchant middlemen?
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What is the aim of examining logistics costs systematically?
What is the aim of examining logistics costs systematically?
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In the context of distribution, what does 'breaking-bulk' refer to?
In the context of distribution, what does 'breaking-bulk' refer to?
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Study Notes
International Distribution and Retailing
- International distribution involves the entire process of moving goods from producer to consumer across international borders.
- This process includes physical handling, ownership transfer, and negotiations between producers, middlemen, and consumers.
- Each country possesses a unique distribution structure, affecting how goods reach consumers.
- Distribution structures vary based on countries.
- Different distribution systems exist, like the import-oriented structure.
Import-Oriented Distribution Structure
- This traditional structure is characterized by a single importer controlling a fixed quantity of goods.
- Marketing strategies focus on selling limited stocks to high-value customers at high prices.
- There is a significant demand-supply imbalance, where customer demand often exceeds limited supply.
- Distribution systems tend to be local rather than national.
- Fewer countries today operate within this model.
Japanese Distribution Structure
- This system has numerous small middlemen that work with numerous small retailers.
- Manufacturers exert significant control over the distribution network, often attributed to vertical integration.
- Unique cultural values influence business philosophies.
- Laws limit the proliferation of large-scale retail stores, thereby supporting small retailers.
High Density of Middlemen
- In Japan, goods often pass through several intermediaries before reaching customers, unlike Western markets which favor large-scale retailers.
- Independent groceries and bakers represent a considerable segment of Japanese retail (94.7%).
- Supermarkets, discount stores, and department stores dominate Western markets.
Channel Control
- Inventory financing, often seen in six-month payment cycles for companies like Coca-Cola in Japan, influences channel control.
- Cumulative rebates incentivize retailer loyalty, and cooperation.
- Other channel control tactics encompass merchandise returns and promotional support.
Business Philosophy
- Japanese distribution systems emphasize long-term dealer-supplier relationships, rooted in loyalty, harmony and friendship.
- This approach results in lower prices to the small retailer, a considerable advantage compared to broader development of large retailers.
- Due to the emphasis on loyalty, Japanese consumer goods are often priced high worldwide.
Large-Scale Retail Store Law and its Successor
- The Daitenho law regulates the opening of retail stores exceeding 500 square meters, limiting their operating hours, and changing their operating day standards.
- The Ministry of International Trade and Industry (MITI) initially approves proposals related to larger retail.
- Foreign and domestic companies were bound by the law.
- The Large-Scale Retail Store Location Act of 2000 succeeded it.
Alternative Middleman Choices
- Sellers must exert influence over middlemen in both the home country and the foreign country.
- Agent middlemen represent principals, while merchant middlemen take title to the goods and operate independently.
Channel Management
- Essential aspects of channel management include locating, selecting, motivating, terminating, and controlling middlemen.
Logistics
- Logistics management involves a comprehensive approach to managing the entire distribution process.
- Physical movement of raw materials, work in progress (WIP inventory), and finished goods encompass the distribution process from production to end user consumption.
- This includes warehousing, transportation, inventory management, distribution plant location, and breaking bulk for lower volume delivery.
Logistics, Continued
- Systematic planning of logistics and calculation of distribution costs can offer significant savings.
- The goal is to achieve optimal system costs, balancing costs with customer satisfaction and efficiency, particularly important when considering the logistics aspects of distribution.
- The European Union has eliminated many trade barriers due to its unification, facilitating the smooth delivery of goods among member countries.
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Description
Explore the complexities of international distribution and retailing in this quiz. Learn about different distribution structures, particularly the import-oriented model, and how they affect the flow of goods from producers to consumers. Understand the factors that influence distribution strategies in various countries.
