Question

stihl shuns mass merchandisers and limits distribution channels to six independent u.s. distributors and six company-owned marketing and distribution centers. this approach to distribution would be best described as which of the following?

Answer 1

STIHL is a good example of selective distribution because it manufactures handheld outdoor power equipment and sells it to six independent U.S. distributors and six STIHL-owned marketing companies.

What is Selective distribution?

Selective distribution is a system and strategy that allows a company to sell its goods through a limited number of intermediaries. Different block exemption and competition laws govern these types of vertical agreements between businesses to ensure that no one company has an unfair advantage over another.

Consider a major food chain that sells franchise stores to individuals who meet the parent company's specific criteria. Consider an e-commerce behemoth that allows a select group of vendors to sell on their platform.

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