Distribution ChannelsThe distribution channel deals with the delivery of the product to the customer. The quality of the distribution channel depends on how effectively it meets customer needs for time utility and place utility, as well as maintaining the channel structure at manageable levels. A distribution channel involves distributors, wholesalers, retailers, sellers and all other intermediaries. Distribution channels on the basis of number of intermediaries are of following types: - Zero level channel (direct selling) - Here the company sells directly to its customers. This may include selling door to door, selling via the Internet or through company-owned stores. The zero-level channel can be very effective in the case of highly technical products where customers need to be informed about the product and marketing and sales go hand in hand. Heavy engineering products are a relevant example. It is also very effective in the case where the service is also provided with a product and therefore direct interaction becomes inevitable. Industrial products that include B to B also depend heavily on it. A Single-Tier Channel – A single-tier channel has only one intermediary between the business and the customer. A two-level channel – A two-level channel has two intermediates. A three-tier channel – A three-tier channel has more than three intermediaries.Two-tier and three-tier channels are generally used for consumer goods.Dell Distribution ChannelDell Inc has used direct marketing channel for selling very effectively of computers to the end consumer. While every other computer manufacturer sold through retailers and distributors, Dell had begun to use direct channels effectively. At first, orders were made by mail. However, Dell pu...... middle of paper ......• Technical support employees do not identify as part of the Dell team and might not be motivated enough.• This would still difficult for a company to manage a large number of partners if they are not directly involved in their activities. • Additionally, over time, the company will lose its ability to extend its services to customers. This weakness can be exploited by competitors who can enter the market with better service support and thus eat into Dell's market share. Dell and HP's outsourcing businesses are seen as one of many reasons for their downfall in recent years. passed because they were not able to adequately meet service requirements. Some competitors like Apple have therefore only outsourced manufacturing but kept design, branding and after-sales service in-house...