Bolster Electronics: Dealing with Dealer Demands
1885 words 8 pagesTo: CEO
From: Mr Rob Jackson, General Sales Manager
Date: 28 May, 2011
Subject: Response to Vickers Industrial Supplies request for distributorship
With reference to the Vickers Industrial Supplies request for a distributorship and associated pricing discount, I have prepared a decision report to assist you in taking a decision. The report contains the analysis of the situation, the options available, my recommendation and an action plan. The recommendation has been arrived at by evaluating the options based on criteria which are aligned with the company’s objectives.
Please find attached the report.
Vickers Industrial Supplies has requested for a distributorship and a pricing discount as it …show more content…
Thus, customers value the design team’s capabilities and service support as much as the equipment itself. If a situation so arises which is not favourable to Vickers, it can readily move to another competitor with the same customer base providing similar service support. The competition in the market has been rising and it is becoming increasingly difficult to maintain a 40% margin. Losing the business to a competitor in the current scenario would be highly detrimental to the current market positioning and future prospects in the region.
Introduction of a new distributor in the past had attracted a backlash from National due to the perceived increase in competition in the sale of Bolster products. The concerns were subsequently allayed when it turned out that there wasn’t any direct conflict between the two distributors. A similar tense situation is likely as National handles sales in southern Alberta region and there could be a perceived threat of Vickers capturing market in Alberta. Thus, it is important that National’s interests are kept in mind as they handle most of the sales and brand building activity of our products across the country. Both the firms have been enjoying a symbiotic relation from the beginning. Being a major player in their respective domains, the association is very important for their sustenance. There is also a