Question
A small electronics company manufactures a line of low
to moderate quality stereo components that are distributed through wholesalers to mass market retailers such as Walmart. The electronics company has begun production of a small line of high quality, professional studio model components. How should the small electronics company distribute its new products?Solution
The new products need an upscale outlet, but the electronics company does not have the sales force to call on thousands of specialty stores, and there is no indication that the new products warrant creating one.
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