The Challenge of International Distribution

Enterprises that continue to adopt a regional, national, or even multinational approach to business are losing out to the competitive advantages of global organizations. Advances in logistics, inventory management, and communications have helped to change worldwide demand characteristics. Some impli...

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Bibliographic Details
Published in:International journal of physical distribution & logistics management 1985-01, Vol.15 (4), p.20
Main Author: Bender, Paul S
Format: Article
Language:English
Subjects:
Advantages
Distribution
International
Profitability
Strategy
Online Access:Get full text
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Summary:Enterprises that continue to adopt a regional, national, or even multinational approach to business are losing out to the competitive advantages of global organizations. Advances in logistics, inventory management, and communications have helped to change worldwide demand characteristics. Some implications for business are: 1. a worldwide convergence of markets, 2. the emergence of global enterprises, and 3. the demise of multinational corporations. Global firms stratify along demographic, social and economic lines and across geographic areas, which has several advantages: 1. location economies, 2. scale economies, 3. scope economies, 4. the ability to overcome trade barriers, and 5. presence in future markets. In developing a global strategy, economic and business considerations that are important include the combined effect on the business of varying rates of exchange along with different inflation rates in different nations. Technical considerations are also important. As the scope of the logistic problem is expanded, the benefits of employing large-scale optimization systems increase.
ISSN:0960-0035
1758-664X