Distributors sometimes resist change, according to Brent Grover’s The Little Black Book of Strategic Planning for Distributors. They stick to what they already know to avoid taking risks. But despite perceived perils, change is necessary for any company long-term. Planning team members need to “internalize why standing still is dangerous,” Brent says.
Smaller companies may need to grow in order to compete with larger companies in the future. A recent article by Modern Distribution Management, publisher of The Little Black Book, discusses how smaller electronics distributors in particular struggle to complete in this highly-consolidated sector, where the top five electronics distributors do more than 90 percent of the business (see Wave of Consolidation Hits the Industry).
One option for smaller companies trying to stay competitive is to get bigger, but this strategy isn’t right for everyone. Another option is specialization, according to Brent. “Find and fill a profitable niche.”
Read about the three criteria that must be met before considering specialization in The Little Black Book of Strategic Planning for Distributors by ordering your copy today.