Question

When determining her distribution strategy in the United Kingdom, Sondra of Plymouth Products found that the British retail sector was very concentrated. How should her company respond to this

Answer 1

Answer: a. They should deal directly with retailers, cutting out wholesalers.

Explanation:

When an industry is said to be concentrated, it means that there aren't a lot of competitors in the market. This means that relatively, only a few firms are in control of the sector.

Wholesalers offer then advantage of providing a bridge with the producer and businesses when the number of businesses is too high for the producer to go to each one individually. As this is not the case here, Sondra's company should deal directly with the retailers because there are few of them.