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Kreative Works: Extending the Boundaries

內容大綱
In April 2016, the owner of Kreative Works, a small-scale furniture manufacturer in Lucknow, Uttar Pradesh, India, decided to expand his company’s product line in response to increased market competition and a shift in consumers’ buying patterns and preferences. The intent was to extend the company’s market reach from its traditional target of educational institutes and offices to a consumer market by marketing a premium lounge chair and a family of dining chairs. The owner also wanted to expand the market geographically. Kreative Works did not have the capacity to open multiple retail outlets. Given these circumstances, should the company market its new product line in a single retail outlet or through an exclusive dealer or distributor (a centralized channel structure), or by distributing its products through multiple distributors or retailers (a decentralized channel structure)?
學習目標
This case is appropriate for use in graduate-level courses on supply chain management, operations management, and distribution channels, to help students<br><ul><li>understand the concept of supply chain coordination and how it is affected by the nature of the contract between a manufacturer and distributor;</li><li>evaluate how different channel designs affect a firm’s marketing strategy;</li><li>explore how strategic incentives affect the channel structure of a firm; and</li><li>appreciate that process innovation and product substitutability in channel design are important factors if different channels compete.</li></ul>
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