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Komatsu’s Strategy of Distribution Channels I

In: Business and Management

Submitted By atelka
Words 2489
Pages 10
International Journal of Marketing Studies

www.ccsenet.org/ijms

On Komatsu’s Strategy of Distribution Channels in China ——Take Komatsu Excavators as an Example
Sufang Zhang School of Economics and Management, Northern China Electric Power University #2 Beinong Road Deshengmenwai, Beijing 100022, China E-mail: zsf69826313@sina.com.cn Chenwei Fu School of Economics and Management, Northern China Electric Power University #2 Beinong Road Deshengmenwai, Beijing 100022, China E-mail: chin_hans@yahoo.com.cn Abstract Selection and management of distribution channels are not only part of management functions and daily operation of multinational corporations (MNCs), but also important compositions of core capability and competitive advantages. This paper first analyzes Komatsu, a well-known Japanese company’s strategy of distribution channel of excavators in China from the perspective of distribution channel intensity, then it discusses market function positioning of Komatsu’s distributors and Komatsu’s control of its distribution channels. Thirdly the paper summarizes characteristics of Komatsu’s distribution channels and conduct theoretical thinking on the strategy of distribution channels of MNCs. Finally it suggests that Chinese enterprises learn from the successful experience of Komatsu. Keywords: MNCs, Komatsu, Excavators, Distribution Channel 1. Introduction Nowadays, the competition of MNCs in the global market focuses on two areas: one is the field of product research and development; the other is the field of product distribution. The former is to grab dominated technology position, while the latter is to grab dominated market position. Technologically superior products may not necessarily have a superiority in the market. How to transform the superority in the field of technology to the superiority in the market is a great concern of MNCs. Distribution...

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