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Functionalist Approach

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Unicist B2B-B2C Distribution 4.0


Synthesis

The distribution of products and services is strongly dependent on communication and delivery possibilities. The technologies of the 4th Industrial Revolution, that were triggered in 2020 by the COVID-19 crisis, introduced a change in the distribution models, which established new possibilities that were not manageable before.

The change of distribution based on the integration of virtual communication as a standard in the world became necessary for healthcare reasons. It allowed integrating from end to end the producers of goods and services and their final customers and users.

The Unicist Distribution 4.0 model can be synthesized by:

  1. The integration of the value chain from the producer to the consumer or user. It implies integrating distributors and clients as part of the organization.
  2. The use of a client centered management model that ensures results, customer orientation and the generation of value.
  3. The development of a virtual relationship model that allows building complementary relationships in a virtual environment.
  4. The functionality and the operation of an integrated business model that needs to be transparent and reliable for all the members.

Description

The Types of Distribution 4.0 Models

There are four possible distribution models:

  1. Business Driven
  2. Relationship Driven
  3. Specialization Driven
  4. Integration Driven

Business Driven

The business driven model is based on establishing transparent complementary relationships between the company, the distributors and the customer / clients.

This business model is based on establishing the value that needs to be provided by the distributors and sustained by the brand of the provider. The core of this distribution model is the assurance of the functionality of the solutions provided.

This business model is natural in environments where the clients expect a sort of outsourcing processes for the provision or goods as a service. The expansion of the market is based on the use of market segmentation and the communication of the value added by the distributors.

Relationship Driven

The relationship driven model is based on the capacity of expanding relationships and is sustained by the relationships that have been built. The construction of relationships is sustained by a structural functional relationship management approach.

The core of this model is the development of complementary functional relationships that ensure the delivery of value to the clients and the management of transparent relationships where the clients / customers are aware of what happens in the organization. It implies that the brands of the provider and the client are asymmetric with negative slope or symmetric.

This business model is natural in markets where the delivery is differentiated, and the products or service provided have a significant participation in the value chain of the clients. The expansion of the market is based on the use of market segmentation and the expansion of the relationships of the distributors based on the asymmetric brand of the provider.

Specialization Driven

The specialization driven model is based on the assurance of a significant value proposition to clients. It implies establishing open relationships with clients / customers supported by the specialized knowledge of the participants in the value chain.

This model requires having a high level of specialization in the development of solutions. It requires having a continuous education model that includes the participation of clients. This educational model is virtual and includes the development of real solutions by the participants.

This business model is natural in high tech solutions markets where the functionality fully depends on the adequate use of the technologies. It requires building up a qualification model for the participants for the building of solutions that allows empowering the image of solution providers. The expansion of the market is based on the use of market segmentation and the positioning of the superior technologies including educational programs for clients / customers.

Integration driven

The integration driven model is based on the development of a spirit the corps that includes the provider, the distributor, and the client. It requires being sustained by the high level of the technology and the segmented power of the brand.

This model requires envisioning the market and the possibilities of technological evolution of such market. It is based on fully understanding the subjective value of the propositions that integrates their use value, the reference value, and the opportunity value.

This business model is natural in markets that are driven by a high speed of technological evolution. These markets require continuous applied research activities and technological updates to be able to influence the market by developing leading solutions. The expansion of the markets is based on the use of market segmentation, the development of sponsors, and the contagiousness of the solutions.

Conclusion

Unicist B2B Distribution 4.0 requires an integration of the participants in a system. This participation requires having a spirit de corps which necessarily is based on the brand power and the differentiation of the value propositions of the company. Unavoidably, there are marginal distributors who cannot participate in the Distribution 4.0 model.

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