distribution networks

Changes to distribution channel design provides an insight into the manufacturer's strategy and the market's confidence in the brand. This usually involves independent external firms (dealers) that are not directly controlled by the manufacturer and as manufacturers and dealers are usually separate firms then relationship management becomes a major concern, complicating decision making. Typically, poor decisions in this area are expensive and slow to correct.

Within the context of a society which places significant importance on long-term relationships, changes in the network also have long-term consequences in the business environment.

Honda

Between 2006 and 2010 Honda has striven for increased brand loyalty in the form of Dream stores and 840 shops have left the network, switching to a new line of business, such as bicycles.