Ever look at that last crumb on your plate—that last grain of rice, or crumb of bread—and wonder how exactly it came allll the wayyyy from some farm to your plate (and now, to the trash, *sniffles*)?
The answer: Distribution channels.
A distribution channel is the chain of hand-offs of a good or service until it reaches consumers, going through multiple businesses. Like a relay race, but for the economy.
For instance, a grain of rice might have been grown in a field in China, then gone to a rice mill, then to a food supplier, then to your grocery store, then to you...and then to the garbage. It ain’t over for that grain.
This is an example of an indirect distribution channel, where there are intermediaries. A direct distribution channel cuts out the middle men, where consumers can buy from the manufacturers. Might work for some clothing and mattresses, but good luck buying rice directly from a Chinese farmer on the reg.
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Finance: What is Distribution?14 Views
finance a la shmoop. what is distribution? alright ,you've made this awesome movie
guaranteed to make audiences laugh and cry and vomit yep in the same scene too. [woman turns green]
sorry it's hard to do Steven Spielberg to do that but well anyway you know all
the things teenagers want when they go to the movies, aside from you know making
out in the back row just below the projection, that's where nobody can see.
so you knock on the door of AMC ,10th century then sci-fi or the sci-fi
channel then Fox then Hulu theater. you know that. one with a combo of arrogance
and ignorance and a whole lot of bravado you then show that in your film, and they [woman in top hat pitches film]
all agree it's wonderful. then they smile and they tell you to
leave and then no they don't validate parking.
you can't believe it. why wouldn't they want your movie? this makes no sense
whose fault it is you don't know but it's definitely not yours that your
movie didn't just make bank so you sheepishly ask why, they say why?
distribution. huh well Disney for example Disney has a stream of 40 big movies a
year ,and most are gently some are good. Disney has distribution. they have a team [Disney blockbusters pictured]
of salespeople who relentlessly give out Lakers tickets to the theater managers
and owners, and unlike you Disney has the muscle the threatened to hold back the
next Star Wars sequel if the theater manager doesn't book boss baby 4: the
bloodletting, for 12 weeks with minimum. money guarantees got it ?so Disney has
distribution and you don't. that's distribution .power. power to book films
into theaters so Disney's films get paid for made and seen by millions while
yours well they never leave the cutting room floor , ie your parents basement.
well maybe next life, go to law school. [girl smiles from parent's basement]