A distribution strategy relying on independent, authorized retailers to sell and service products is prevalent across several sectors. This approach allows manufacturers to extend their reach and provide localized customer support without directly managing individual sales locations. Automobiles, heavy machinery, and recreational vehicles commonly employ this model.
This strategy provides several advantages. It facilitates market penetration by leveraging the local expertise and established customer base of the independent retailers. Dealers handle inventory management, sales, and after-sales service, reducing the manufacturer’s operational burden. Historically, this model has been instrumental in expanding markets and providing geographically dispersed customer service.
