How do the 'Company -related factor' affect the choice of Channels of distribution? Explain.

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Solution

There are two important characteristics of a company which determine the channel of distribution used by it, namely financial strength and the degree of control which the company wishes to command over intermediaries. A shorter channel of distribution offers great control over intermediaries, but require greater funds. Accordingly, a company which wishes to command greater control over intermediaries would opt for shorter channels of distribution.

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