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Another relevant example of distribution matters.

June 6, 2012

Source: http://www.statista.com/statistics/196597/number-of-snack-and-coffee-shops-enterprises-in-the-us-since-2002/

An article in the WSJ this morning exemplifies the post from yesterday in that distribution matters. http://online.wsj.com/article/SB10001424052702303830204577448831198953946.html?KEYWORDS=starbucks As part of the value chain as described by Michael Porter, distribution can be the difference in success and failure. Are too many people focused on the cloud and it’s offering of ubiquitous and instantaneous connections?

The WSJ story outlines the JV between Starbucks and Coinstar. Coinstar is the company making the Redbox machines to distribute DVD’s. A declining revenue stream. Seattle’s Best Coffee used to distribute its products primarily through Borders, who has gone out of business and now owned by Starbucks. Starbucks itself has been expanding its distribution channels through grocery stores. By foregoing the franchise model and sticking with its company owned store format, conflicts from alternative distribution choices are removed.

How are your distribution channels performing? Have you assessed other distribution channel options? How are your competitors distributing product and services? What about those non- head to head competitors? What are they doing?

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