Intermec is a firm located in Everett. It is known for manufacture of computer devices, with Pat Byrne being the Chief Executive Officer since 2007. Intermec has developed as an established innovator in computer technologies such as bar-coding and printing, as well as holding numerous trade secrets, trademarks and copyrights. Intermec outsources most of its production services to a firm in Singapore, where clients are able to use mobility initiatives in direct delivery , field services and asset management applications. Intermec operates in highly evolving and fragmenting market, where major firms compete for available market segments. Motorola Company is Intermec’s main competitor.
Motorola offers similar technologies as Intermec, but differs in product line and product depth. In 2009, Intermec experienced reduction in total revenues due to competitor impacts and global slowdown, resulting to net loss in its income. Intermec distributes its products through e-commerce websites, distributors and resell networks and direct sales forces. However, Intermec faces challenges in its distribution channels. Few years ago, its major competitor Motorola offered promotional allowances and discounts that motivated its success in product distribution. Byrne believes in Intermec’s business partners, resellers and integrators for product distribution (Rosen bloom 580).
Byrne’s distribution channel option is incomplete. Therefore, Intermec can use additional strategic options for its products:
- Dual Distribution: This distribution channel involves several marketing arrangements, where wholesalers and producers use various channels to reach consumers. They may sell to firms for resale or directly to consumers (McCauley 16).
- Reverse Channels: This channel involves a reserve transaction, where products flow form end users to intermediary, finally to beneficiaries which results to additional sales through resale and product recycling.
Intermec distributors and resellers can feel alienated if Byrne decides to bypass main distributors and work with smaller resellers, or even decide to use direct distribution channels. This is because, either small or major product distributors are necessary in firm marketing channels as well as general business operations. Byrne can make use of several distribution channels ,including minor and major distributors, direct sales, e-commerce websites and dual distribution channels too avoid estranging distributors and for utmost returns (McCalley 18).
McCalley, Russell W. Marketing Channel Development and Management. Westport, Conn: Quorum Books, 2007. Print.
Rosenbloom, Bert. Intermec Inc:Managing Multi-Channel Strategy. Boston: Cengage Learning, 2011. Print.