Recommended Reading: New Competitive Pressures Demand a Fresh Look at Your Markets - Modern Distribution Management

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Recommended Reading: New Competitive Pressures Demand a Fresh Look at Your Markets

Articles look at how distributors can avoid being held hostage to old ways of doing business.

When I think of disruption in a market, I think of Netflix with its DVD-by-mail innovation, competing directly with Blockbuster and very nearly putting it out of business.

I also think about the impact of the Internet on traditional print publications, such as newspapers. These examples clearly show that when a company discounts the impact of a disruptive technology or service on their business, it can have significant results – usually of the negative variety.

In part because of the rise of the Internet, the wholesale distribution industry is currently seeing a confluence of factors that are changing the competitive landscape. A decade or more ago we heard a lot about how the Internet might disintermediate the role of the independent distributor, and that didn’t happen.

But that doesn’t mean the Internet proved innocuous. An ever-increasing pace of change, thanks in large part to technology, has muddied the competitive waters for distributors, and if they don’t think differently, they may get stuck.

As Mike Marks of Indian River Consulting Group said in the recent MDM Webcast on distributor innovation: “A lot of what we see today is that market share incumbents, the people that enjoyed market share in an existing traditional setting that are hostage to history are losing position to the market share challengers who care more about the customers than market practices.”

We’ve been covering this topic in MDM Premium over the past couple of months in our series on The Shifting Competitive Landscape. If you’ve missed those articles, here’s a selection of what we’ve presented so far:

Coming up in this series, we’ll look at the impact of global distributors who have entered the North American market, how to prove value to your customers and how Big Data is affecting the competitive landscape.

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